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(267146, 25837, 'MetaValueNew', '<img class=\"aligncenter size-large wp-image-8090\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_622400486-1-1024x437.jpg\" alt=\"\" width=\"640\" height=\"273\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The 2022 FIFA World Cup™ is shaping up to be a momentous event. It will be the first to be held in the Middle East and the first to be hosted by an Arab country. It is well-known that the FIFA obligations imposed on a host country in relation to the tournament involve substantial changes to its laws in order to accommodate FIFA’s commercial, licensing and tax requirements, among other issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is not to say FIFA can simply impose its will and insist on complete changes to Qatar’s legal system. Qatar is a relatively conservative Arab country with traditional and established legal concepts and customs. While by necessity, and by virtue of similar situations at previous World Cups, changes will need to be made to certain local laws to meet FIFA requirements, such changes will need to be through agreements between the host country and FIFA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Getting this balance right will result in mutual benefits for Qatar and FIFA to create a successful tournament as well developing an ongoing legacy for the host country in conjunction with the Qatar National Vision 2030. Some of these changes in law are still to be agreed while others may have already set in motion positive developments, as further shown below.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8088 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/lnmn--1024x572.jpg\" alt=\"\" width=\"576\" height=\"322\" />Legal challenges</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA has strict requirements in respect of all aspects relating to a World Cup, from stadium construction, accommodation and transport to publicity and marketing matters related to the event. Changes to local laws are generally needed in order to allow for, among other things, FIFA to obtain all required Qatar government guarantees in respect of the World Cup, FIFA-designated goods and merchandise to be imported into Qatar free of customs duties, FIFA’s intellectual property (‘IP’) and authorised sponsors and licensees to be protected against unlawful third party actions such as sale of counterfeit goods and ambush marketing (see more below). FIFA also requires that it is exempted from taxation or otherwise favourably treated in respect of World Cup-related income.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While there will be changes made to comply with such FIFA requirements it will generally still be necessary for persons doing business in Qatar to comply with existing Qatar laws, for example in respect of IP protection, events, customs and consumer protection, to the extent there is no conflict between the two.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Specific changes to laws and/or the enactment of enabling laws in respect of government guarantees, customs requirements and taxation have not yet been implemented. It is expected these will be agreed between Qatar and FIFA within an appropriate time period prior to the 2022 tournament, although the basis and extent of these new laws is not yet clear. It seems, however, that in respect of licensing and merchandising matters, such as in respect of ambush marketing and fake/counterfeit merchandise, the legal approach and position will be similar to that taken at previous World Cups, .</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sponsorship and Merchandising</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ambush marketing is essentially the unauthorised association by an entity of its products and/or services in respect of an event where it has no sponsorship or licensing rights. The entity is often a competitor of a duly authorised event sponsor/licensee. The aim, via clever marketing and the pushing of legal boundaries, is to create the perception (and obtain the related commercial value) of the ambushing entity being associated with the event in question, to the detriment and loss of the authorised event sponsor or licensee who has paid a substantial amount for such privilege.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Fake/counterfeit merchandising involves the sale to the public of event-themed and event-linked goods where the sellers are not authorised to do so and/or where the actual goods being sold have been not produced under authorised licence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As with previous World Cup tournaments, the intention of the Qatar authorities and FIFA is not to take a heavy-handed approach but at the same time ensure that action is taken quickly and decisively against any infringing persons. Special investigative units and courts specifically to deal with cases of ambush marketing and counterfeit merchandise will be created. This will involve enabling legislation being introduced to allow authorised officials to monitor and stop infringements by conducting local investigations and court hearings and issuing immediate fines to perpetrators. The plan is not to provide for any jail sentences but in all cases the infringing goods would be confiscated.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">These additional legal provisions will be supplementary to existing Qatari copyright and trademark laws which protect IP and related licensing rights in accordance with international standards. FIFA has also published an exhaustive and extremely strict code of what it considers to be unacceptable marketing practices surrounding its World Cup tournament.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Customs and Consumer Protection</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Irrespective of specific agreements reached with FIFA, any goods coming into Qatar in connection with the World Cup will need to comply with the existing Customs Law, whereby the General Authority of Customs have the right not to permit any goods to clear customs and enter Qatar unless such goods have been approved by the relevant authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Incoming goods will also need to comply with the existing Consumer Protection Law. This gives consumers in Qatar the right, amongst others, to return defective products, to the repair or replacement of any defective products and the right to receive accurate information about the products. The Consumer Protection Law prohibits the sale or marketing of defective or expired goods, with goods considered defective if they do not comply with specific standards, are unfit for purpose or have expired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Electronic Commerce Law also addresses certain consumer rights by stating that its provisions are applicable to the provisions of the Consumer Protection Law. This ensures that both physical and online sales and marketing transactions are covered in relation to counterfeit goods.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Tourism and Events Management</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The provisions of the Tourism Licensing Law, which govern business activities in the tourism sector within Qatar, are applicable to the hotel and other industries within the tourism sector. They will impact related World Cup activities and ventures. The law regulates ‘tourism establishments’, defined as places operating mainly to accommodate tourists, such as entertainment establishments and specialised clubs, and other places allocated to provide services for tourists, such as tourism offices, offices offering tourist transport, tourist guide offices and time-sharing places, and any other establishment deemed to be a tourist establishment in accordance with a decision of the Minister of Economy and Commerce or the proposal of the President of the Qatar Tourism Authority. It also covers ‘tourism activities’: any activity of the transport of tourists including the transport of tourists on trips onshore or offshore, the activities of tour guides, time-sharing and any other activity deemed to be a tourist activity in accordance with a decision of the Minister of Economy and Commerce or the proposal of the President of the Qatar Tourism Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Tourism Licensing Law, a licence is required to establish or manage a hotel or tourist establishment or to practise any tourist activity. Applications for such a licence is made to the Qatar Tourism Authority and all hotel and/or tour operators wishing to conduct such activities in relation to the 2022 World Cup will need to be aware of such requirement.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gambling</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As with all major sporting events, the World Cup will generate substantial gambling activities. Gambling is prohibited in Qatar in all forms, whether land-based or online, as well as the advertising of gambling activities. Accordingly it is unlikely that any gambling will be tolerated and any offenders would face prosecution. The risk of enforcement against an online gambling operator outside of Qatar is lower but the offending website could be blocked by the authorities pursuant to provisions under the Cybercrime Law, which also provide for the confiscation of all devices, software or equipment used in the commission of the offence and the confiscation of any funds obtained from such offence.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Worker’s Rights and Laws</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the extensive construction and infrastructure projects associated with the 2022 World Cup in terms of stadiums, accommodation and transport, a lot of attention has been focused on the rights and welfare of the many workers who will be engaged on these projects. Certain rights and protections are granted to workers in Qatar under the Labour Law and these have been further supplemented pursuant to the adoption in 2013 of specific workers’ charters by the Supreme Committee for Delivery and Legacy (the ‘SC 2022’) and Qatar Foundation for Science, Education and Community Development (the ‘Qatar Foundation’).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Labour Law provides workers with certain rights and protections in respect of the provision of necessary equipment, the nature of work to be performed, remuneration, working hours and holidays, annual and sick leave, other forms of leave, occupational health and safety, compensation for accidents and death, end-of-service gratuity and repatriation obligation upon termination. Non-Qatari workers are not permitted to form worker committees, unions or similar collective organisations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SC 2022’s Workers’ Welfare Standards charter, which covers all workers engaged in the World Cup stadium construction and infrastructure projects overseen by the SC 2022, says additional protections are provided to such workers requiring all its contractors and subcontractors for stadium-related projects to comply with such charter. These protections include, without limitation, ethical recruitment and fair treatment, employment offer minimum requirements, responsibility for relocation costs to Qatar, no retention of worker passports or other personal documents, dignified and ethical employment conditions, the provision of medical insurance, accommodation and food standards, reporting requirements for employers, the creation of workers’ welfare forums, transportation and site requirements and access to information in an appropriate language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Qatar Foundation Mandatory Standards of Migrant Workers’ Welfare document provides similar additional rights and protections for workers involved in all Qatar Foundation projects, which includes one of the World Cup 2022 stadiums and related facilities. The Qatar Foundation charter sets out certain minimum standards with regards to the recruitment, living and working conditions of workers engaged in construction and other projects at the Qatar Foundation. These standards are applicable to, and compliance is required from, all contractors and subcontractors of Qatar Foundation. The required standards include, without limitation, preparation of a welfare adherence plan and related audit, workers being informed as to all entitlements, a safe and healthy work environment, a clean, safe and healthy living environment, equal and humane treatment, equal pay for equal work, regulated working hours, medical insurance and skills training.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Accessibility Requirements</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Accessibility to stadiums for disabled persons and/or persons in wheelchairs is a mandatory requirement of FIFA for all stadiums constructed for a World Cup tournament. In this respect, the SC 2022 is ensuring that all World Cup 2022 venues will be accessible to persons with disabilities so as to make the event inclusive for all. Pursuant to this requirement, accessibility is incorporated into all areas of stadium and venue design such as seating, entry and exit points, parking and toilet facilities. The SC 2022 has advised that the amount of seating for disabled persons (including for disabled media representatives) will be based on the size of each stadium and will include places for people with autism as well.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a local perspective there is no substantial legal provision in respect of accessibility requirements for persons with disabilities. In terms of the Qatari Law in respect of People with Special Needs, there is a general requirement to provide people with special needs with, inter alia, the means for assisted transport and equipment, accommodation for safe and secure movement as well as special facilities in public places. The Ministry of Municipality and Environment covers some of these aspects in terms of its requirements for building works, along with various other ministries and local authorities in relation to building matters, but these requirements do not extend as far as those of FIFA in terms of accessibility. However, the overall scope of the World Cup 2022 requirements would seem to imply accessibility requirements for disabled persons will inevitably need to be extended to other World Cup-related areas such as hotels and accommodation, airport and transport facilities and fan zones in order to be compatible with those at the stadium venues.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Summary</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA has strict benchmarks to meet when it comes to the stadiums, facilities, logistics and publicity for World Cup events while Qatar has strict legislation that cannot be easily or quickly changed. The attaining of a mutually beneficial solution will take time but can be achieved after undertaking detailed research and analysis to understand the laws that may need to be enacted or changed to host the tournament.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There are plenty of precedents for this. South Africa for instance enacted a law to enable speedy trials in special courts in respect of crimes by fans, Brazil enacted legislation to accommodate FIFA requirements and Russia, the 2018 hosts, have also made changes to their laws in connection with the World Cup.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The process of analysis is well under way in Qatar and changes to laws and standards in connection with World Cup 2022 have been and continue to be considered. The prospects seem to be in place for finding a solution that satisfies external and internal stakeholders, ensures a successful tournament for FIFA and the host nation as well leaving a meaningful legacy of progressive standards and legal considerations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8030\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/KJBNKJN.jpg\" alt=\"\" width=\"5043\" height=\"1477\" /></em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">NB: A version of this article was first published during the week of 18 June 2018 on Lawinsport.com.</p>\r\n<em>Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and Roberto routinely provides key support to our Sports Law and Events Management practice. For further information please contact Steve Bainbridge (s.bainbridge@tamimi.com) or Roberto Lusardi (r.lusardi@tamimi.com).</em>'),
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(267440, 25863, 'MetaValueOld', '<img class=\"aligncenter wp-image-8090 size-full\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_622400486-1.jpg\" alt=\"\" width=\"4000\" height=\"1707\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The 2022 FIFA World Cup™ is shaping up to be a momentous event. It will be the first to be held in the Middle East and the first to be hosted by an Arab country. It is well-known that the FIFA obligations imposed on a host country in relation to the tournament involve substantial changes to its laws in order to accommodate FIFA’s commercial, licensing and tax requirements, among other issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is not to say FIFA can simply impose its will and insist on complete changes to Qatar’s legal system. Qatar is a relatively conservative Arab country with traditional and established legal concepts and customs. While by necessity, and by virtue of similar situations at previous World Cups, changes will need to be made to certain local laws to meet FIFA requirements, such changes will need to be through agreements between the host country and FIFA.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Getting this balance right will result in mutual benefits for Qatar and FIFA to create a successful tournament as well developing an ongoing legacy for the host country in conjunction with the Qatar National Vision 2030. Some of these changes in law are still to be agreed while others may have already set in motion positive developments, as further shown below.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-8088 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/lnmn--1024x572.jpg\" alt=\"\" width=\"479\" height=\"268\" />Legal challenges</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA has strict requirements in respect of all aspects relating to a World Cup, from stadium construction, accommodation and transport to publicity and marketing matters related to the event. Changes to local laws are generally needed in order to allow for, among other things, FIFA to obtain all required Qatar government guarantees in respect of the World Cup, FIFA-designated goods and merchandise to be imported into Qatar free of customs duties, FIFA’s intellectual property (‘IP’) and authorised sponsors and licensees to be protected against unlawful third party actions such as sale of counterfeit goods and ambush marketing (see more below). FIFA also requires that it is exempted from taxation or otherwise favourably treated in respect of World Cup-related income.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While there will be changes made to comply with such FIFA requirements it will generally still be necessary for persons doing business in Qatar to comply with existing Qatar laws, for example in respect of IP protection, events, customs and consumer protection, to the extent there is no conflict between the two.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Specific changes to laws and/or the enactment of enabling laws in respect of government guarantees, customs requirements and taxation have not yet been implemented. It is expected these will be agreed between Qatar and FIFA within an appropriate time period prior to the 2022 tournament, although the basis and extent of these new laws is not yet clear. It seems, however, that in respect of licensing and merchandising matters, such as in respect of ambush marketing and fake/counterfeit merchandise, the legal approach and position will be similar to that taken at previous World Cups, .</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sponsorship and Merchandising</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Ambush marketing is essentially the unauthorised association by an entity of its products and/or services in respect of an event where it has no sponsorship or licensing rights. The entity is often a competitor of a duly authorised event sponsor/licensee. The aim, via clever marketing and the pushing of legal boundaries, is to create the perception (and obtain the related commercial value) of the ambushing entity being associated with the event in question, to the detriment and loss of the authorised event sponsor or licensee who has paid a substantial amount for such privilege.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Fake/counterfeit merchandising involves the sale to the public of event-themed and event-linked goods where the sellers are not authorised to do so and/or where the actual goods being sold have been not produced under authorised licence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As with previous World Cup tournaments, the intention of the Qatar authorities and FIFA is not to take a heavy-handed approach but at the same time ensure that action is taken quickly and decisively against any infringing persons. Special investigative units and courts specifically to deal with cases of ambush marketing and counterfeit merchandise will be created. This will involve enabling legislation being introduced to allow authorised officials to monitor and stop infringements by conducting local investigations and court hearings and issuing immediate fines to perpetrators. The plan is not to provide for any jail sentences but in all cases the infringing goods would be confiscated.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">These additional legal provisions will be supplementary to existing Qatari copyright and trademark laws which protect IP and related licensing rights in accordance with international standards. FIFA has also published an exhaustive and extremely strict code of what it considers to be unacceptable marketing practices surrounding its World Cup tournament.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Customs and Consumer Protection</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Irrespective of specific agreements reached with FIFA, any goods coming into Qatar in connection with the World Cup will need to comply with the existing Customs Law, whereby the General Authority of Customs have the right not to permit any goods to clear customs and enter Qatar unless such goods have been approved by the relevant authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Incoming goods will also need to comply with the existing Consumer Protection Law. This gives consumers in Qatar the right, amongst others, to return defective products, to the repair or replacement of any defective products and the right to receive accurate information about the products. The Consumer Protection Law prohibits the sale or marketing of defective or expired goods, with goods considered defective if they do not comply with specific standards, are unfit for purpose or have expired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Electronic Commerce Law also addresses certain consumer rights by stating that its provisions are applicable to the provisions of the Consumer Protection Law. This ensures that both physical and online sales and marketing transactions are covered in relation to counterfeit goods.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright wp-image-8092 \" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/dgdd-589x1024.jpg\" alt=\"\" width=\"211\" height=\"367\" />Tourism and Events Management</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The provisions of the Tourism Licensing Law, which govern business activities in the tourism sector within Qatar, are applicable to the hotel and other industries within the tourism sector. They will impact related World Cup activities and ventures. The law regulates ‘tourism establishments’, defined as places operating mainly to accommodate tourists, such as entertainment establishments and specialised clubs, and other places allocated to provide services for tourists, such as tourism offices, offices offering tourist transport, tourist guide offices and time-sharing places, and any other establishment deemed to be a tourist establishment in accordance with a decision of the Minister of Economy and Commerce or the proposal of the President of the Qatar Tourism Authority. It also covers ‘tourism activities’: any activity of the transport of tourists including the transport of tourists on trips onshore or offshore, the activities of tour guides, time-sharing and any other activity deemed to be a tourist activity in accordance with a decision of the Minister of Economy and Commerce or the proposal of the President of the Qatar Tourism Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Tourism Licensing Law, a licence is required to establish or manage a hotel or tourist establishment or to practise any tourist activity. Applications for such a licence is made to the Qatar Tourism Authority and all hotel and/or tour operators wishing to conduct such activities in relation to the 2022 World Cup will need to be aware of such requirement.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gambling</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As with all major sporting events, the World Cup will generate substantial gambling activities. Gambling is prohibited in Qatar in all forms, whether land-based or online, as well as the advertising of gambling activities. Accordingly it is unlikely that any gambling will be tolerated and any offenders would face prosecution. The risk of enforcement against an online gambling operator outside of Qatar is lower but the offending website could be blocked by the authorities pursuant to provisions under the Cybercrime Law, which also provide for the confiscation of all devices, software or equipment used in the commission of the offence and the confiscation of any funds obtained from such offence.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Worker’s Rights and Laws</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the extensive construction and infrastructure projects associated with the 2022 World Cup in terms of stadiums, accommodation and transport, a lot of attention has been focused on the rights and welfare of the many workers who will be engaged on these projects. Certain rights and protections are granted to workers in Qatar under the Labour Law and these have been further supplemented pursuant to the adoption in 2013 of specific workers’ charters by the Supreme Committee for Delivery and Legacy (the ‘SC 2022’) and Qatar Foundation for Science, Education and Community Development (the ‘Qatar Foundation’).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Labour Law provides workers with certain rights and protections in respect of the provision of necessary equipment, the nature of work to be performed, remuneration, working hours and holidays, annual and sick leave, other forms of leave, occupational health and safety, compensation for accidents and death, end-of-service gratuity and repatriation obligation upon termination. Non-Qatari workers are not permitted to form worker committees, unions or similar collective organisations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The SC 2022’s Workers’ Welfare Standards charter, which covers all workers engaged in the World Cup stadium construction and infrastructure projects overseen by the SC 2022, says additional protections are provided to such workers requiring all its contractors and subcontractors for stadium-related projects to comply with such charter. These protections include, without limitation, ethical recruitment and fair treatment, employment offer minimum requirements, responsibility for relocation costs to Qatar, no retention of worker passports or other personal documents, dignified and ethical employment conditions, the provision of medical insurance, accommodation and food standards, reporting requirements for employers, the creation of workers’ welfare forums, transportation and site requirements and access to information in an appropriate language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Qatar Foundation Mandatory Standards of Migrant Workers’ Welfare document provides similar additional rights and protections for workers involved in all Qatar Foundation projects, which includes one of the World Cup 2022 stadiums and related facilities. The Qatar Foundation charter sets out certain minimum standards with regards to the recruitment, living and working conditions of workers engaged in construction and other projects at the Qatar Foundation. These standards are applicable to, and compliance is required from, all contractors and subcontractors of Qatar Foundation. The required standards include, without limitation, preparation of a welfare adherence plan and related audit, workers being informed as to all entitlements, a safe and healthy work environment, a clean, safe and healthy living environment, equal and humane treatment, equal pay for equal work, regulated working hours, medical insurance and skills training.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Accessibility Requirements</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Accessibility to stadiums for disabled persons and/or persons in wheelchairs is a mandatory requirement of FIFA for all stadiums constructed for a World Cup tournament. In this respect, the SC 2022 is ensuring that all World Cup 2022 venues will be accessible to persons with disabilities so as to make the event inclusive for all. Pursuant to this requirement, accessibility is incorporated into all areas of stadium and venue design such as seating, entry and exit points, parking and toilet facilities. The SC 2022 has advised that the amount of seating for disabled persons (including for disabled media representatives) will be based on the size of each stadium and will include places for people with autism as well.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a local perspective there is no substantial legal provision in respect of accessibility requirements for persons with disabilities. In terms of the Qatari Law in respect of People with Special Needs, there is a general requirement to provide people with special needs with, inter alia, the means for assisted transport and equipment, accommodation for safe and secure movement as well as special facilities in public places. The Ministry of Municipality and Environment covers some of these aspects in terms of its requirements for building works, along with various other ministries and local authorities in relation to building matters, but these requirements do not extend as far as those of FIFA in terms of accessibility. However, the overall scope of the World Cup 2022 requirements would seem to imply accessibility requirements for disabled persons will inevitably need to be extended to other World Cup-related areas such as hotels and accommodation, airport and transport facilities and fan zones in order to be compatible with those at the stadium venues.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Summary</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA has strict benchmarks to meet when it comes to the stadiums, facilities, logistics and publicity for World Cup events while Qatar has strict legislation that cannot be easily or quickly changed. The attaining of a mutually beneficial solution will take time but can be achieved after undertaking detailed research and analysis to understand the laws that may need to be enacted or changed to host the tournament.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There are plenty of precedents for this. South Africa for instance enacted a law to enable speedy trials in special courts in respect of crimes by fans, Brazil enacted legislation to accommodate FIFA requirements and Russia, the 2018 hosts, have also made changes to their laws in connection with the World Cup.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The process of analysis is well under way in Qatar and changes to laws and standards in connection with World Cup 2022 have been and continue to be considered. The prospects seem to be in place for finding a solution that satisfies external and internal stakeholders, ensures a successful tournament for FIFA and the host nation as well leaving a meaningful legacy of progressive standards and legal considerations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8030\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/KJBNKJN.jpg\" alt=\"\" width=\"5043\" height=\"1477\" /></em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">NB: A version of this article was first published during the week of 18 June 2018 on Lawinsport.com.</p>\r\n<em>Al Tamimi &amp; Company’s TMT team regularly advises on the full spectrum of technology, media and telecommunications matters and Roberto routinely provides key support to our Sports Law and Events Management practice. For further information please contact Steve Bainbridge (s.bainbridge@tamimi.com) or Roberto Lusardi (r.lusardi@tamimi.com).</em>'),
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(266799, 25807, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright size-large wp-image-8023\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_775162108-389x1024.jpg\" alt=\"\" width=\"389\" height=\"1024\" />The suspension of an athlete or nation from participating in the Olympic Games is commonly considered to be the ultimate sporting sanction. Whilst the suspension of Russia from PyeongChang 2018 (and its reinstatement immediately afterwards) grabbed headlines, Kuwait remains subject to a ban imposed by the International Olympic Committee (\"IOC\") in 2015.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait’s National Olympic Committee (\"NOC\") is no stranger to Olympic exile, having been suspended by the IOC in 1986. More recently, Kuwait was warned by the IOC in 2007 that its sports legislation permitted governmental interference in the internal functioning of its NOC and other sporting federations, in violation of the Olympic Charter. When Kuwait did not address this issue by the IOC’s deadline of 31 December 2009, its NOC was suspended. This ban was lifted shortly before London 2012.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further sports legislation was enacted in early 2015, however, that conferred upon the Kuwaiti Sports Ministry the power to assume control of national sporting bodies, as well the ability to control financial matters. Consequently, Kuwait’s NOC was disbanded by the Kuwaiti Sport Ministry, purportedly due to financial irregularities, as were nine other national federations. Interim committees were established to take over their administration, headed by figures widely reported to be loyal to the Kuwaiti Sports Ministry. The IOC took the view that Kuwait had failed to ameliorate the position by the IOC’s deadline of 27 October 2015; and, its NOC was suspended again. This came shortly after FIFA had imposed its own suspension on Kuwait’s football association (\"KFA\"), having failed to meet FIFA’s 15 October 2015 deadline for corrective action. Sixteen further international sports federations subsequently followed suit.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Subsequent Developments</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In response to its censure by the international sporting community, Kuwait went on the offensive. In June 2016, the Kuwait government appealed the IOC suspension in the Swiss Civil Courts and claimed $1 billion compensation for losses flowing from the alleged unjust imposition of a suspension in the absence of an appropriate investigation. The appeal and compensation claim were dismissed in August 2016 and Kuwait was ordered to pay $11,500 towards the IOC’s legal costs. Also in June 2016, the Court of Arbitration for Sport (\"CAS\") rejected an appeal brought by a number of Kuwaiti football clubs (including the Kuwaiti Premier League champions, Kuwait Sporting Club) against the FIFA suspension.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to legal proceedings, Kuwait has made frequent unsuccessful appeals to the IOC (and FIFA) for its suspension to be lifted. Numerous meetings have also taken place between Kuwaiti officials and the IOC, most notably that mediated by the United Nations in January 2016, at which the parties appeared to have to have reached an agreement in principle that Kuwait reportedly reneged upon at a later date.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 12 December 2016, Kuwait’s newly-elected parliament voted by a majority of over two thirds to amend the relevant sports legislation to facilitate re-admission to international sport. This vote unfortunately came too late for Kuwait to take part in the AFC Asian Cup Qualification final round, given that the deadline imposed by the Asian Football Conference (\"AFC\") for the KFA to be readmitted to FIFA membership was 18 December 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In early 2017 the IOC are reported to have sent a letter to the Kuwaiti Sports Ministry setting three conditions for Kuwait’s re-acceptance into the Olympic Movement:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">all relevant sport legislation must be amended in order to comply with the Olympic Charter;</li>\r\n 	<li dir=\"LTR\">all board member changes imposed upon Kuwait’s NOC and other sporting bodes must be revoked; and</li>\r\n 	<li dir=\"LTR\">all ongoing domestic and international cases against the IOC and other international sporting bodes must be dropped.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">On 4 December 2017, Kuwait finally bowed to mounting domestic and international pressure by enacting new sports legislation purporting to replace all previous such laws and thus prevent governmental interference with Kuwaiti sporting bodies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA lifted its ban on 6 December 2017. However, despite subsequent meetings taking place between Kuwaiti officials and the IOC, the Olympic ban remains in place.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The wider context of governmental interference</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sporting bodies are hard-wired to protect their autonomy to govern and regulate their sport, as enshrined in the Olympic Charter. A distinct body of law, lex sportiva, has developed over time to underpin the doctrine that sporting bodies are best placed to understand the unique circumstances of sport and manage them in a way that maximises wider societal benefits. The Olympic Charter promotes collaboration between sporting bodies and government, but prohibits interference. This begs the question as to where the line is between benign and undue governmental influence. Reasonable conditions attached to the receipt of public funds by sporting bodies for grassroots investment is an obvious example of the former, whereas a government retaining unfettered power to disband national sporting federations is an obvious example of the latter. However, there are a myriad of circumstances falling in between.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait is not alone in finding itself on the wrong side of the IOC due to governmental interference in sport:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">In July 2007, Panama was suspended by the IOC for governmental interference in the running of its NOC. The ban was lifted in April 2008 in time for the nation to compete at Beijing 2008. It was threatened with a further suspension in January 2011 when the Panamanian President demanded the resignation of NOC committee members, but this was averted when the issue was resolved to the IOC’s satisfaction.</li>\r\n 	<li dir=\"LTR\">In January 2011, Ghana’s NOC was suspended by the IOC for failing to amend its sports law to prevent the Ghanaian government from making presidential appointments to its NOC and numerous national sporting federations. The ban was lifted in October 2011 when a new sports law was enacted to prevent political interference, allowing the nation to compete at London 2012.</li>\r\n 	<li dir=\"LTR\">In June 2011, the IOC warned the Indian Sports Ministry that compelling national sporting federations to adopt mandatory eligibility requirements for officials constituted undue governmental interference. When the Indian government ignored this warning and the Olympic Association separately elected officials accused of corruption, the Indian NOC was suspended by the IOC for non-compliance with the Olympic Charter in December 2012. Somewhat uniquely, the IOC lifted this ban lifted four days into Sochi 2014 when new officials were elected, causing the Indian flag to be belatedly raised in the Olympic Village.</li>\r\n 	<li dir=\"LTR\">In 2015, Sri Lanka was warned by the IOC that it faced suspension if it did not revise proposed sports legislation that barred high-ranking officials from standing for re-election by the end of that year. This governmental interference was cited as a major reason for Sri Lanka being stripped of its hosting rights of the 2017 Asian Youth Games.</li>\r\n 	<li dir=\"LTR\">In August 2016, Kenya’s Sports Ministry disbanded its NOC and transferred its duties to Sports Kenya, in response to alleged mismanagement of Team Kenya at Rio 2016 by senior NOC officials. In March 2017, the IOC cut funding and threated suspension of the newly-formed NOC when it refused to accept IOC-requested governance reforms.</li>\r\n 	<li dir=\"LTR\">Recent reports suggest that Saudi Arabia is coming under increased scrutiny from the IOC and FIFA in connection with a growing trend of appointments for government-backed appointees to the Kingdom’s national sports federations. A suspension from international sport would impact the Kingdom’s successful national and club football teams and may also affect its progressive economic reforms, of which sport - and in particular the privatisation of its top-tier football clubs - is a central component, owing to sport’s increasingly valuable geo-political status in the GCC region.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The IOC is, therefore, not afraid to adopt a robust approach if it considers that the Olympic Charter is being undermined by undue governmental interference. One particular area it has sought to control is the fall-out when relations between national governments and NOCs breakdown. In this regard the IOC has a number of weapons at its disposal, including proactive engagement with the parties, interim funding cuts, the threat of a suspension, and ultimately the imposition of a suspension. The political unpopularity of presiding over a nation suspended from the Olympics more often than not prompts governments to take the necessary remedial action.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commentary</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The fact that the IOC has not yet followed FIFA’s lead in lifting its ban on Kuwait is an intriguing epilogue to this rather messy affair. The reasons for this are not clear, however it may be because Kuwait has not yet complied with the pre-conditions for re-acceptance (outlined above) to the IOC’s satisfaction. It may also be symptomatic of the deterioration in the relationship between Kuwait and the IOC. A string of previous broken promises and the instigation of a $1 billion lawsuit may have eroded the IOC’s trust in Kuwait delivering meaningful and lasting change this time around.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">What is certain is that the impact on Kuwaiti sport has been marked. Kuwaiti athletes were unable to represent their country at the 2010 Summer Youth Olympics, Rio 2016, and PyeongChang 2018; having to compete instead as neutral athletes under the Olympic flag. Indeed, Kuwait was denied its first ever Olympic gold medal when Kuwaiti shooter Fehaid Al-Deehani claimed the dubious honour at Rio 2016 of becoming the first athlete to win a gold medal as an Independent Olympic Athlete. Similarly, Kuwaiti football teams and clubs have been barred from international competitions (including the World Cup 2018 qualifiers and the AFC Asian Cup 2019) and the national team’s FIFA ranking has plummeted to 160 (having been as high as 24 in 1998). To add insult to injury, all IOC and FIFA financial development assistance has been stopped during the periods of suspension, which has severely affected the finances of Kuwaiti sport. Even more tragic is the impact on Kuwait’s grassroots participants and youth, who have cruelly been denied sporting heroes to aspire to and sporting goals to aim for, as well as their training programmes and facilities being starved of cash from the IOC and FIFA. Many talk of Kuwait’s ‘lost generation’ of talent and feel that lasting damage has been done.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is difficult not to draw comparisons with Russia’s 85 day IOC suspension for systemic manipulation of anti-doping rules which the IOC President Thomas Bach described as \"an unprecedented attack on the integrity of the Olympic games and sport\". There is little doubting that a Russian team appeared at PyeongChang 2018 in all but name (and arguably in name, being ‘Olympic Athletes from Russia’, as compared to Kuwait’s ‘Independent Olympic Athletes’), with its 168 athletes (only 64 less than at Sochi 2014) being cheered on by fans wearing Russian kit, waving Russian flags and singing the Russian anthem. Kuwait’s continuing IOC suspension, which in contrast to the Russian suspension does not implicate any individual athletes, does seem to disproportionately punish Kuwaiti athletes for what has been termed a power struggle between Kuwait’s ruling elite.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Now that certain roadblocks to reinstatement have been removed (as outlined above), it seems likely that the IOC ban will be lifted; however it remains to be seen when this will be and what further steps Kuwait will need to take to achieve it.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8022\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/RTHTF.jpg\" alt=\"\" width=\"5786\" height=\"1837\" /></p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">NB: Please note a version of this article was first published on lawinsport.com on 15 June 2018 (https://www.lawinsport.com/topics/articles/item/governmental-interference-in-global-sport-why-kuwait-is-still-in-the-olympic-wilderness).</em></p>\r\n<em>Andrew (a.moroney@tamimi.com) is an Associate in Al Tamimi &amp; Company’s dedicated Sports &amp; Events Management team, working exclusively for clients in the sports and events sector on commercial, dispute resolution and regulatory matters. For further information please contact Steve Bainbridge (s.bainbridge@tamimi.com)</em>'),
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(275871, 26585, 'ReportText', 'Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.|Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-large wp-image-8128\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_509472535-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-large wp-image-8127\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_498755845-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-large wp-image-8130\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_779654593-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-large wp-image-8126\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_455965843-1024x683.jpg\" alt=\"\" width=\"640\" height=\"427\" />Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-large wp-image-8123\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_342657950-1024x1024.jpg\" alt=\"\" width=\"640\" height=\"640\" />Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(272241, 26253, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://www.tamimi.com/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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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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(266655, 25792, 'UserAgent', 'Mozilla/5.0 (Macintosh; Intel Mac OS X 10_13_2) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/67.0.3396.99 Safari/537.36'),
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(266803, 25807, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright size-large wp-image-8023\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_775162108-389x1024.jpg\" alt=\"\" width=\"389\" height=\"1024\" />The suspension of an athlete or nation from participating in the Olympic Games is commonly considered to be the ultimate sporting sanction. Whilst the suspension of Russia from PyeongChang 2018 (and its reinstatement immediately afterwards) grabbed headlines, Kuwait remains subject to a ban imposed by the International Olympic Committee (\"IOC\") in 2015.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait’s National Olympic Committee (\"NOC\") is no stranger to Olympic exile, having been suspended by the IOC in 1986. More recently, Kuwait was warned by the IOC in 2007 that its sports legislation permitted governmental interference in the internal functioning of its NOC and other sporting federations, in violation of the Olympic Charter. When Kuwait did not address this issue by the IOC’s deadline of 31 December 2009, its NOC was suspended. This ban was lifted shortly before London 2012.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further sports legislation was enacted in early 2015, however, that conferred upon the Kuwaiti Sports Ministry the power to assume control of national sporting bodies, as well the ability to control financial matters. Consequently, Kuwait’s NOC was disbanded by the Kuwaiti Sport Ministry, purportedly due to financial irregularities, as were nine other national federations. Interim committees were established to take over their administration, headed by figures widely reported to be loyal to the Kuwaiti Sports Ministry. The IOC took the view that Kuwait had failed to ameliorate the position by the IOC’s deadline of 27 October 2015; and, its NOC was suspended again. This came shortly after FIFA had imposed its own suspension on Kuwait’s football association (\"KFA\"), having failed to meet FIFA’s 15 October 2015 deadline for corrective action. Sixteen further international sports federations subsequently followed suit.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Subsequent Developments</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In response to its censure by the international sporting community, Kuwait went on the offensive. In June 2016, the Kuwait government appealed the IOC suspension in the Swiss Civil Courts and claimed $1 billion compensation for losses flowing from the alleged unjust imposition of a suspension in the absence of an appropriate investigation. The appeal and compensation claim were dismissed in August 2016 and Kuwait was ordered to pay $11,500 towards the IOC’s legal costs. Also in June 2016, the Court of Arbitration for Sport (\"CAS\") rejected an appeal brought by a number of Kuwaiti football clubs (including the Kuwaiti Premier League champions, Kuwait Sporting Club) against the FIFA suspension.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to legal proceedings, Kuwait has made frequent unsuccessful appeals to the IOC (and FIFA) for its suspension to be lifted. Numerous meetings have also taken place between Kuwaiti officials and the IOC, most notably that mediated by the United Nations in January 2016, at which the parties appeared to have to have reached an agreement in principle that Kuwait reportedly reneged upon at a later date.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 12 December 2016, Kuwait’s newly-elected parliament voted by a majority of over two thirds to amend the relevant sports legislation to facilitate re-admission to international sport. This vote unfortunately came too late for Kuwait to take part in the AFC Asian Cup Qualification final round, given that the deadline imposed by the Asian Football Conference (\"AFC\") for the KFA to be readmitted to FIFA membership was 18 December 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In early 2017 the IOC are reported to have sent a letter to the Kuwaiti Sports Ministry setting three conditions for Kuwait’s re-acceptance into the Olympic Movement:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">all relevant sport legislation must be amended in order to comply with the Olympic Charter;</li>\r\n 	<li dir=\"LTR\">all board member changes imposed upon Kuwait’s NOC and other sporting bodes must be revoked; and</li>\r\n 	<li dir=\"LTR\">all ongoing domestic and international cases against the IOC and other international sporting bodes must be dropped.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">On 4 December 2017, Kuwait finally bowed to mounting domestic and international pressure by enacting new sports legislation purporting to replace all previous such laws and thus prevent governmental interference with Kuwaiti sporting bodies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA lifted its ban on 6 December 2017. However, despite subsequent meetings taking place between Kuwaiti officials and the IOC, the Olympic ban remains in place.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The wider context of governmental interference</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sporting bodies are hard-wired to protect their autonomy to govern and regulate their sport, as enshrined in the Olympic Charter. A distinct body of law, lex sportiva, has developed over time to underpin the doctrine that sporting bodies are best placed to understand the unique circumstances of sport and manage them in a way that maximises wider societal benefits. The Olympic Charter promotes collaboration between sporting bodies and government, but prohibits interference. This begs the question as to where the line is between benign and undue governmental influence. Reasonable conditions attached to the receipt of public funds by sporting bodies for grassroots investment is an obvious example of the former, whereas a government retaining unfettered power to disband national sporting federations is an obvious example of the latter. However, there are a myriad of circumstances falling in between.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait is not alone in finding itself on the wrong side of the IOC due to governmental interference in sport:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">In July 2007, Panama was suspended by the IOC for governmental interference in the running of its NOC. The ban was lifted in April 2008 in time for the nation to compete at Beijing 2008. It was threatened with a further suspension in January 2011 when the Panamanian President demanded the resignation of NOC committee members, but this was averted when the issue was resolved to the IOC’s satisfaction.</li>\r\n 	<li dir=\"LTR\">In January 2011, Ghana’s NOC was suspended by the IOC for failing to amend its sports law to prevent the Ghanaian government from making presidential appointments to its NOC and numerous national sporting federations. The ban was lifted in October 2011 when a new sports law was enacted to prevent political interference, allowing the nation to compete at London 2012.</li>\r\n 	<li dir=\"LTR\">In June 2011, the IOC warned the Indian Sports Ministry that compelling national sporting federations to adopt mandatory eligibility requirements for officials constituted undue governmental interference. When the Indian government ignored this warning and the Olympic Association separately elected officials accused of corruption, the Indian NOC was suspended by the IOC for non-compliance with the Olympic Charter in December 2012. Somewhat uniquely, the IOC lifted this ban lifted four days into Sochi 2014 when new officials were elected, causing the Indian flag to be belatedly raised in the Olympic Village.</li>\r\n 	<li dir=\"LTR\">In 2015, Sri Lanka was warned by the IOC that it faced suspension if it did not revise proposed sports legislation that barred high-ranking officials from standing for re-election by the end of that year. This governmental interference was cited as a major reason for Sri Lanka being stripped of its hosting rights of the 2017 Asian Youth Games.</li>\r\n 	<li dir=\"LTR\">In August 2016, Kenya’s Sports Ministry disbanded its NOC and transferred its duties to Sports Kenya, in response to alleged mismanagement of Team Kenya at Rio 2016 by senior NOC officials. In March 2017, the IOC cut funding and threated suspension of the newly-formed NOC when it refused to accept IOC-requested governance reforms.</li>\r\n 	<li dir=\"LTR\">Recent reports suggest that Saudi Arabia is coming under increased scrutiny from the IOC and FIFA in connection with a growing trend of appointments for government-backed appointees to the Kingdom’s national sports federations. A suspension from international sport would impact the Kingdom’s successful national and club football teams and may also affect its progressive economic reforms, of which sport - and in particular the privatisation of its top-tier football clubs - is a central component, owing to sport’s increasingly valuable geo-political status in the GCC region.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The IOC is, therefore, not afraid to adopt a robust approach if it considers that the Olympic Charter is being undermined by undue governmental interference. One particular area it has sought to control is the fall-out when relations between national governments and NOCs breakdown. In this regard the IOC has a number of weapons at its disposal, including proactive engagement with the parties, interim funding cuts, the threat of a suspension, and ultimately the imposition of a suspension. The political unpopularity of presiding over a nation suspended from the Olympics more often than not prompts governments to take the necessary remedial action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commentary</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The fact that the IOC has not yet followed FIFA’s lead in lifting its ban on Kuwait is an intriguing epilogue to this rather messy affair. The reasons for this are not clear, however it may be because Kuwait has not yet complied with the pre-conditions for re-acceptance (outlined above) to the IOC’s satisfaction. It may also be symptomatic of the deterioration in the relationship between Kuwait and the IOC. A string of previous broken promises and the instigation of a $1 billion lawsuit may have eroded the IOC’s trust in Kuwait delivering meaningful and lasting change this time around.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">What is certain is that the impact on Kuwaiti sport has been marked. Kuwaiti athletes were unable to represent their country at the 2010 Summer Youth Olympics, Rio 2016, and PyeongChang 2018; having to compete instead as neutral athletes under the Olympic flag. Indeed, Kuwait was denied its first ever Olympic gold medal when Kuwaiti shooter Fehaid Al-Deehani claimed the dubious honour at Rio 2016 of becoming the first athlete to win a gold medal as an Independent Olympic Athlete. Similarly, Kuwaiti football teams and clubs have been barred from international competitions (including the World Cup 2018 qualifiers and the AFC Asian Cup 2019) and the national team’s FIFA ranking has plummeted to 160 (having been as high as 24 in 1998). To add insult to injury, all IOC and FIFA financial development assistance has been stopped during the periods of suspension, which has severely affected the finances of Kuwaiti sport. Even more tragic is the impact on Kuwait’s grassroots participants and youth, who have cruelly been denied sporting heroes to aspire to and sporting goals to aim for, as well as their training programmes and facilities being starved of cash from the IOC and FIFA. Many talk of Kuwait’s ‘lost generation’ of talent and feel that lasting damage has been done.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is difficult not to draw comparisons with Russia’s 85 day IOC suspension for systemic manipulation of anti-doping rules which the IOC President Thomas Bach described as \"an unprecedented attack on the integrity of the Olympic games and sport\". There is little doubting that a Russian team appeared at PyeongChang 2018 in all but name (and arguably in name, being ‘Olympic Athletes from Russia’, as compared to Kuwait’s ‘Independent Olympic Athletes’), with its 168 athletes (only 64 less than at Sochi 2014) being cheered on by fans wearing Russian kit, waving Russian flags and singing the Russian anthem. Kuwait’s continuing IOC suspension, which in contrast to the Russian suspension does not implicate any individual athletes, does seem to disproportionately punish Kuwaiti athletes for what has been termed a power struggle between Kuwait’s ruling elite.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Now that certain roadblocks to reinstatement have been removed (as outlined above), it seems likely that the IOC ban will be lifted; however it remains to be seen when this will be and what further steps Kuwait will need to take to achieve it.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8022\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/RTHTF.jpg\" alt=\"\" width=\"5786\" height=\"1837\" />NB: Please note a version of this article was first published on lawinsport.com on 15 June 2018 (https://www.lawinsport.com/topics/articles/item/governmental-interference-in-global-sport-why-kuwait-is-still-in-the-olympic-wilderness).</em></p>\r\n<em>Andrew (a.moroney@tamimi.com) is an Associate in Al Tamimi &amp; Company’s dedicated Sports &amp; Events Management team, working exclusively for clients in the sports and events sector on commercial, dispute resolution and regulatory matters. For further information please contact Steve Bainbridge (s.bainbridge@tamimi.com)</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright size-large wp-image-8023\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_775162108-389x1024.jpg\" alt=\"\" width=\"389\" height=\"1024\" />The suspension of an athlete or nation from participating in the Olympic Games is commonly considered to be the ultimate sporting sanction. Whilst the suspension of Russia from PyeongChang 2018 (and its reinstatement immediately afterwards) grabbed headlines, Kuwait remains subject to a ban imposed by the International Olympic Committee (\"IOC\") in 2015.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait’s National Olympic Committee (\"NOC\") is no stranger to Olympic exile, having been suspended by the IOC in 1986. More recently, Kuwait was warned by the IOC in 2007 that its sports legislation permitted governmental interference in the internal functioning of its NOC and other sporting federations, in violation of the Olympic Charter. When Kuwait did not address this issue by the IOC’s deadline of 31 December 2009, its NOC was suspended. This ban was lifted shortly before London 2012.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further sports legislation was enacted in early 2015, however, that conferred upon the Kuwaiti Sports Ministry the power to assume control of national sporting bodies, as well the ability to control financial matters. Consequently, Kuwait’s NOC was disbanded by the Kuwaiti Sport Ministry, purportedly due to financial irregularities, as were nine other national federations. Interim committees were established to take over their administration, headed by figures widely reported to be loyal to the Kuwaiti Sports Ministry. The IOC took the view that Kuwait had failed to ameliorate the position by the IOC’s deadline of 27 October 2015; and, its NOC was suspended again. This came shortly after FIFA had imposed its own suspension on Kuwait’s football association (\"KFA\"), having failed to meet FIFA’s 15 October 2015 deadline for corrective action. Sixteen further international sports federations subsequently followed suit.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Subsequent Developments</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In response to its censure by the international sporting community, Kuwait went on the offensive. In June 2016, the Kuwait government appealed the IOC suspension in the Swiss Civil Courts and claimed $1 billion compensation for losses flowing from the alleged unjust imposition of a suspension in the absence of an appropriate investigation. The appeal and compensation claim were dismissed in August 2016 and Kuwait was ordered to pay $11,500 towards the IOC’s legal costs. Also in June 2016, the Court of Arbitration for Sport (\"CAS\") rejected an appeal brought by a number of Kuwaiti football clubs (including the Kuwaiti Premier League champions, Kuwait Sporting Club) against the FIFA suspension.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition to legal proceedings, Kuwait has made frequent unsuccessful appeals to the IOC (and FIFA) for its suspension to be lifted. Numerous meetings have also taken place between Kuwaiti officials and the IOC, most notably that mediated by the United Nations in January 2016, at which the parties appeared to have to have reached an agreement in principle that Kuwait reportedly reneged upon at a later date.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 12 December 2016, Kuwait’s newly-elected parliament voted by a majority of over two thirds to amend the relevant sports legislation to facilitate re-admission to international sport. This vote unfortunately came too late for Kuwait to take part in the AFC Asian Cup Qualification final round, given that the deadline imposed by the Asian Football Conference (\"AFC\") for the KFA to be readmitted to FIFA membership was 18 December 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In early 2017 the IOC are reported to have sent a letter to the Kuwaiti Sports Ministry setting three conditions for Kuwait’s re-acceptance into the Olympic Movement:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">all relevant sport legislation must be amended in order to comply with the Olympic Charter;</li>\r\n 	<li dir=\"LTR\">all board member changes imposed upon Kuwait’s NOC and other sporting bodes must be revoked; and</li>\r\n 	<li dir=\"LTR\">all ongoing domestic and international cases against the IOC and other international sporting bodes must be dropped.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">On 4 December 2017, Kuwait finally bowed to mounting domestic and international pressure by enacting new sports legislation purporting to replace all previous such laws and thus prevent governmental interference with Kuwaiti sporting bodies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">FIFA lifted its ban on 6 December 2017. However, despite subsequent meetings taking place between Kuwaiti officials and the IOC, the Olympic ban remains in place.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The wider context of governmental interference</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sporting bodies are hard-wired to protect their autonomy to govern and regulate their sport, as enshrined in the Olympic Charter. A distinct body of law, lex sportiva, has developed over time to underpin the doctrine that sporting bodies are best placed to understand the unique circumstances of sport and manage them in a way that maximises wider societal benefits. The Olympic Charter promotes collaboration between sporting bodies and government, but prohibits interference. This begs the question as to where the line is between benign and undue governmental influence. Reasonable conditions attached to the receipt of public funds by sporting bodies for grassroots investment is an obvious example of the former, whereas a government retaining unfettered power to disband national sporting federations is an obvious example of the latter. However, there are a myriad of circumstances falling in between.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Kuwait is not alone in finding itself on the wrong side of the IOC due to governmental interference in sport:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">In July 2007, Panama was suspended by the IOC for governmental interference in the running of its NOC. The ban was lifted in April 2008 in time for the nation to compete at Beijing 2008. It was threatened with a further suspension in January 2011 when the Panamanian President demanded the resignation of NOC committee members, but this was averted when the issue was resolved to the IOC’s satisfaction.</li>\r\n 	<li dir=\"LTR\">In January 2011, Ghana’s NOC was suspended by the IOC for failing to amend its sports law to prevent the Ghanaian government from making presidential appointments to its NOC and numerous national sporting federations. The ban was lifted in October 2011 when a new sports law was enacted to prevent political interference, allowing the nation to compete at London 2012.</li>\r\n 	<li dir=\"LTR\">In June 2011, the IOC warned the Indian Sports Ministry that compelling national sporting federations to adopt mandatory eligibility requirements for officials constituted undue governmental interference. When the Indian government ignored this warning and the Olympic Association separately elected officials accused of corruption, the Indian NOC was suspended by the IOC for non-compliance with the Olympic Charter in December 2012. Somewhat uniquely, the IOC lifted this ban lifted four days into Sochi 2014 when new officials were elected, causing the Indian flag to be belatedly raised in the Olympic Village.</li>\r\n 	<li dir=\"LTR\">In 2015, Sri Lanka was warned by the IOC that it faced suspension if it did not revise proposed sports legislation that barred high-ranking officials from standing for re-election by the end of that year. This governmental interference was cited as a major reason for Sri Lanka being stripped of its hosting rights of the 2017 Asian Youth Games.</li>\r\n 	<li dir=\"LTR\">In August 2016, Kenya’s Sports Ministry disbanded its NOC and transferred its duties to Sports Kenya, in response to alleged mismanagement of Team Kenya at Rio 2016 by senior NOC officials. In March 2017, the IOC cut funding and threated suspension of the newly-formed NOC when it refused to accept IOC-requested governance reforms.</li>\r\n 	<li dir=\"LTR\">Recent reports suggest that Saudi Arabia is coming under increased scrutiny from the IOC and FIFA in connection with a growing trend of appointments for government-backed appointees to the Kingdom’s national sports federations. A suspension from international sport would impact the Kingdom’s successful national and club football teams and may also affect its progressive economic reforms, of which sport - and in particular the privatisation of its top-tier football clubs - is a central component, owing to sport’s increasingly valuable geo-political status in the GCC region.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The IOC is, therefore, not afraid to adopt a robust approach if it considers that the Olympic Charter is being undermined by undue governmental interference. One particular area it has sought to control is the fall-out when relations between national governments and NOCs breakdown. In this regard the IOC has a number of weapons at its disposal, including proactive engagement with the parties, interim funding cuts, the threat of a suspension, and ultimately the imposition of a suspension. The political unpopularity of presiding over a nation suspended from the Olympics more often than not prompts governments to take the necessary remedial action.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Commentary</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The fact that the IOC has not yet followed FIFA’s lead in lifting its ban on Kuwait is an intriguing epilogue to this rather messy affair. The reasons for this are not clear, however it may be because Kuwait has not yet complied with the pre-conditions for re-acceptance (outlined above) to the IOC’s satisfaction. It may also be symptomatic of the deterioration in the relationship between Kuwait and the IOC. A string of previous broken promises and the instigation of a $1 billion lawsuit may have eroded the IOC’s trust in Kuwait delivering meaningful and lasting change this time around.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">What is certain is that the impact on Kuwaiti sport has been marked. Kuwaiti athletes were unable to represent their country at the 2010 Summer Youth Olympics, Rio 2016, and PyeongChang 2018; having to compete instead as neutral athletes under the Olympic flag. Indeed, Kuwait was denied its first ever Olympic gold medal when Kuwaiti shooter Fehaid Al-Deehani claimed the dubious honour at Rio 2016 of becoming the first athlete to win a gold medal as an Independent Olympic Athlete. Similarly, Kuwaiti football teams and clubs have been barred from international competitions (including the World Cup 2018 qualifiers and the AFC Asian Cup 2019) and the national team’s FIFA ranking has plummeted to 160 (having been as high as 24 in 1998). To add insult to injury, all IOC and FIFA financial development assistance has been stopped during the periods of suspension, which has severely affected the finances of Kuwaiti sport. Even more tragic is the impact on Kuwait’s grassroots participants and youth, who have cruelly been denied sporting heroes to aspire to and sporting goals to aim for, as well as their training programmes and facilities being starved of cash from the IOC and FIFA. Many talk of Kuwait’s ‘lost generation’ of talent and feel that lasting damage has been done.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is difficult not to draw comparisons with Russia’s 85 day IOC suspension for systemic manipulation of anti-doping rules which the IOC President Thomas Bach described as \"an unprecedented attack on the integrity of the Olympic games and sport\". There is little doubting that a Russian team appeared at PyeongChang 2018 in all but name (and arguably in name, being ‘Olympic Athletes from Russia’, as compared to Kuwait’s ‘Independent Olympic Athletes’), with its 168 athletes (only 64 less than at Sochi 2014) being cheered on by fans wearing Russian kit, waving Russian flags and singing the Russian anthem. Kuwait’s continuing IOC suspension, which in contrast to the Russian suspension does not implicate any individual athletes, does seem to disproportionately punish Kuwaiti athletes for what has been termed a power struggle between Kuwait’s ruling elite.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Now that certain roadblocks to reinstatement have been removed (as outlined above), it seems likely that the IOC ban will be lifted; however it remains to be seen when this will be and what further steps Kuwait will need to take to achieve it.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><em><img class=\"alignleft size-full wp-image-8022\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/RTHTF.jpg\" alt=\"\" width=\"5786\" height=\"1837\" /></p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\">NB: Please note a version of this article was first published on lawinsport.com on 15 June 2018 (https://www.lawinsport.com/topics/articles/item/governmental-interference-in-global-sport-why-kuwait-is-still-in-the-olympic-wilderness).</em></p>\r\n<em>Andrew (a.moroney@tamimi.com) is an Associate in Al Tamimi &amp; Company’s dedicated Sports &amp; Events Management team, working exclusively for clients in the sports and events sector on commercial, dispute resolution and regulatory matters. For further information please contact Steve Bainbridge (s.bainbridge@tamimi.com)</em>'),
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(272240, 26253, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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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(270497, 26121, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 \" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"447\" height=\"298\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
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(272244, 26253, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8046\" src=\"http://www.tamimi.com/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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_641258596.jpg\" alt=\"\" width=\"4928\" height=\"1748\" /></p>\r\n&nbsp;\r\n<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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft size-full wp-image-8047\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_737881615-Converted-01.jpg\" alt=\"\" width=\"3967\" height=\"1751\" /></strong></p>\r\n&nbsp;\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&nbsp;\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&nbsp;\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&nbsp;\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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(270446, 26117, 'MetaValueNew', 'Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.'),
(270496, 26121, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8039 \" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_1032816913-1024x683.jpg\" alt=\"\" width=\"447\" height=\"298\" />On 29 March 2018, His Highness King Abdullah Al Thani Ibn Al Hussein promulgated Law No. (16) for the year 2018, a law amending the Jordanian Arbitration Law No. (31) for the year 2001 (the \"Amended Law\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces new and anticipated changes to the procedural framework of arbitrations seated in Jordan, many of which can be traced in the UNCITRAL Model Law as amended in 2006. Further, the Amended Law provides for much needed clarity on some of the ambiguities witnessed under the previous regime.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we highlight the key features of the Amended Law and discuss some of their practical implications on the conduct of arbitral proceedings in Jordan.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Scope of Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law came into force thirty (30) days after its publication in the Official Gazette No. 5513/2018 dated 2 May 2018. The Amended Law will apply to arbitrations seated in Jordan, as well as arbitrations in which the parties agree to subject such arbitration proceedings to the Amended Law, and irrespective of the nature of the legal relationship giving rise to the dispute.</p>\r\nTo this end, the Amended Law defines the \"<em>Seat of Arbitration</em>\" as \"<em>the country agreed upon by the parties to the arbitration to be the seat of the arbitral proceedings, the country whose applicable arbitration law is agreed upon by the parties to apply to the arbitral proceedings or the country selected by the arbitral tribunal as its seat in the absence of an agreement.</em>\"\r\n\r\nThe Amended Law further defines the \"Competent Judge\" as \"<em> The head of the Competent Court or any of its judges as authorized by the head of the Competent Court in writing</em>.\"\r\n<p dir=\"LTR\" align=\"LEFT\">It is worth noting that the Amended Law will not have a retroactive effect. As such, it will only apply to arbitral proceedings and/or court cases that have commenced or are currently ongoing and/or being examined before arbitral tribunals and/or courts. For purposes of determining the commencement date of arbitral proceedings, the Amended law, under article 26, considers the date of the formal constitution of the arbitral tribunal as the date of commencement of the arbitral proceedings.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Interpretation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important addition reflected in the Amended Law is the explicit reference to legal principles and guidelines of international arbitration, as well as international trade customs, as sources of interpretation of the provisions of the Jordan Arbitration Law.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitration Agreement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law has brings changes to the rules governing arbitration agreements. While the Amended Law has reconfirmed the writing requirement for the validity of arbitration agreements, it specified that the writing requirement can be satisfied through any form, including electronic correspondence. A welcome change in the Amended Law lies in the explicit admission of arbitration agreements incorporated by reference. There are indeed instances where an arbitration agreement may be incorporated by reference to an arbitration agreement contained in another document. Under the previous regime, an arbitration agreement incorporated by reference was regarded as valid provided the reference itself clearly considered the arbitration agreement to form part of the main agreement entered into between the parties. The Amended Law eases the conditions of validity of arbitration agreements by removing the requirement for an explicit acknowledgment that the arbitration agreement incorporated by reference forms part of the main agreement. Under the regime of the Amended Law, any reference or indication contained in the main agreement concluded between the parties to another document containing an arbitration agreement is deemed to be analogous to a written arbitration clause under the original agreement. This is particularly useful in instances where parties sign specific terms and conditions which contain a reference to general terms and conditions containing an arbitration agreement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also stipulates that prior arbitration agreements in employment contracts and consumer contracts concluded on preprinted forms shall be null and void. This amendment, in particular the ban on arbitrating any dispute that may arise out of an employment contract, is in line with the most recent and prevailing decisions of the Jordanian courts.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Tribunal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces provisions relating to the number of arbitrators, their appointment and the designation of the presiding tribunal member in events where the disputing parties are 3 or more. According to Article (16) of the Amended Law, an agreement on the appointment and number of arbitrators as well as on the mechanism of appointing of the presiding member by the disputing parties shall always take precedence and prevail however, in absence of any such agreement: (i) the Competent Judge will appoint the arbitrators if their number was agreed upon between the disputing parties and will also name the presiding tribunal member and; (ii) Where the number of arbitrators and their method of appointment is not agreed upon by the disputing parties, the arbitral tribunal must then be comprised of 3 members appointed by the Competent Judge who will also name the presiding tribunal member and; (iii) if the number of arbitrators and their method of appointment was known, the appointed arbitrators must select the presiding member by a majority decision, if the majority was not achieved, the Competent Judge will name the presiding member pursuant to a request by any of the disputing parties. The Amended Law grants any of the disputing parties the right to resort to the Competent Judge in event of a disagreement as to any of the matters pertaining to the appointment of arbitrators who, in turn, must rule as necessary to resolve such disagreement. Finally in this regard, the Amended Law placed a duty on the Competent Judge, when selecting an arbitrator, (i) to consider the requirements of the law and the parties’ pre-set conditions in this regard and; (ii) to accelerate the process of decision making when selecting an arbitrator. Under the previous regime, decisions by the Competent Court appointing an arbitrator(s) were not subject to appeal before a higher court and were to be considered final. The Amended Law, in this regard, implicitly allows for an appeal of the Competent Judge’s decision by deleting, from the amended relevant article, the previous explicit text on the appeal constraints.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the challenge of arbitrators, the Amended Law placed a duty on both the prospective and appointed arbitrators to be impartial and independent. The Amended Law, in line with the UNCITRAL Model Law, places a continuing duty on the arbitrators to remain impartial and independent throughout the arbitral proceedings and imposes a duty on the arbitrators to disclose any such circumstances that may cause their impartiality or independence to be impaired.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Amended Law, the application for the disqualification of an arbitrator by a party must be based on serious grounds. In addition, the procedures for requesting an arbitrator to be recused have been amended. Under the previous law, a request challenging the impartiality and independence of an arbitrator was to be submitted to the court of appeal; however, under the regime, the same request must now be submitted to the arbitral tribunal itself, which, in turn, must refer the request along with the challenged arbitrator’s response to the court of appeal if the challenged arbitrator does not recuse himself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the UNCITRAL Model Law, the Amended Law contains a special provision with regards to placing an obligation on the arbitral tribunal to act fairly and impartially and ensure that parties have an equal opportunity to present their case. The arbitral tribunal must also avoid any unjustified delay or unnecessary expenses in order to resolve the dispute in a timely manner \"<em>for the sake of achieving a fair and urgent means for dispute resolution.</em>\"</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the arbitral tribunal’s fees, the Amended Law introduced a new provision regarding the fees of the arbitral tribunal. Pursuant to such a provision, and in absence of an agreement between the disputing parties and the arbitral tribunal on the fees, the arbitral tribunal shall determine its own fees and order the disputing parties to each pay their share equally. A very important, yet lopsided addition under the Amended Law lies in a clause granting the arbitral tribunal the right to order the compliant party to pay the defaulting party’s share of the arbitral tribunal fees in events where a disputing party defaults in paying their share of the tribunal fees or any expenses of arbitration. Any decision issued by the arbitral tribunal concerning its fees may now be challenged through an appeal before the court of appeal within (15) days from the date of notification of the parties of the same.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>The Arbitral Proceedings</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law now allows Jordanian lawyers to \"<em>engage any non-Jordanian lawyer or any other professional and experienced person, if the contract subject matter of the dispute referred to arbitration is subject to the provisions of a foreign law.</em>\" Such an addition on the recourse to foreign legal counsel, as well as other relevant professionals to instances where the contract at issue in an arbitration is governed by the provisions of a foreign law, and by a means of assistance to the Jordanian lawyer, is favorable. It is regrettable, however, that the Amended Law did not make any provisions as to permitting non-Jordanian representation in arbitral proceedings where the underlying contract is governed by Jordanian law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law reconfirmed that Arabic shall be the default language applicable to the arbitral proceedings unless the parties agree otherwise. The arbitral tribunal is also entrusted with the power to determine the application of another language.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that the Amended Law now allows the parties, at any time during the arbitral proceedings, to submit additional evidence to support their claim/defense unless the arbitral tribunal disapproves such submission. This new addition to the Amended Law was not provided for under the previous regime as the parties were only allowed to amend their grounds of defense and their final requests but were not permitted to submit any additional evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also introduces major and welcomed changes to the means through which arbitration hearings and proceedings can now be conducted. Under the Amended Law, the arbitral tribunal is granted greater leeway in holding the hearings in a manner the tribunal sees fit so long as the hearings and the meetings can be documented in writing. The Amended Law introduced various provisions recognizing contemporary means of communication as it now permitted the arbitral tribunal to use any new method of communication to conduct any arbitration procedure, including the use of different telecommunication technological methods, such as videoconferencing for the purpose of hearing witness testimony. Such cost and time effective measures will undoubtedly contribute to the efficiency of the proceedings.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also reiterated the acceptance of affidavits, i.e., sworn statements of testimony, as evidence in arbitral proceedings. However, the Amended Law provided that should the opponent wish to cross examine the witness and the latter fails to appear before the arbitral tribunal, the entire affidavit must be ruled out as evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for experts, the Amended Law sets new conditions for the admission of expert reports where any of the parties to the arbitration submits such reports with their documentary evidence. For the expert report to be admissible under the Amended Law, the submitting party must disclose the expert appointment letter, the scope of work/assignment of the expert, and the fees that were paid to them. It is mandatory, under the Amended Law, to call the expert for questioning at the request of a party or should the tribunal so decide. As for the appointment of the expert, the Amended Law introduces an option for the appointment of a juristic person (company) as an expert as opposed to solely an individual as was the case under the previous regime.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Interim and Conservatory Measures</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where either party wishes to apply for interim or conservatory measures, the Amended Law, like the previous law, allows the arbitrating parties to do so prior to the commencement of arbitral proceedings or during such proceedings in accordance with the relevant articles of the Jordanian Law of Civil Procedures No. (24) for the year 1988.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Jordanian Law of Civil Procedures No. (24) for the year 1988 provides that a claimant may apply to the judge of summary proceedings for a motion to attach and/or freeze property of the defendant party as a precautionary measure either prior to the filing of the substantive lawsuit or along with it. Where the motion is made prior to filing the substantive lawsuit, the Jordanian Law of Civil Procedures stipulates that the substantive lawsuit must be filed within a period of eight (8) days after procuring the decision to attach/freeze the properties of the defendant, otherwise any or all (where applicable) attached properties will be released.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purpose of upholding the attachment of property after the (8) day period, the Amended Law now considers a notice to appoint an arbitrator served by the claimant upon the respondent along with the appointed arbitrator’s written confirmation of acceptance to be sufficient as a time barring event for the running of the (8) day period mentioned under the Jordanian Law of Civil Procedures. Such a trigger event to the confirmation of the attachment may cause some practical challenges as often the appointment of an arbitrator comes at a later stage in the proceedings, after the request for arbitration. In some urgent cases, the need to sustain the attachment would have to occur prior to the appointment of an arbitrator. Also, in some instances, the power to appoint an arbitrator, and depending on the agreement among the parties, lies outside of the parties, through for example an appointing authority.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>The Award</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As for the time limit within which the arbitral tribunal must render its final award, the previous regime provides that such time limit shall start to run from the date of the commencement of the arbitral proceedings until the lapse of a twelve (12) month period. The extension provided for was for only another six (6) months. The Amended Law provides for the same period; however, the time limit shall start to run from the date of the constitution of the arbitral tribunal. The arbitral tribunal may in any event extend the time limit for a period of twelve (12) months or as otherwise agreed by the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In relation to the final arbitration award, the Amended Law provides that the final award must be issued unanimously or by a majority decision. In the absence of a majority, the parties may agree that the award be made by the president of the arbitral tribunal alone. If the parties do not agree as to how the award will be issued when a majority is not reached the arbitral proceedings shall cease and terminate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Where any part of the claim was acknowledged by the opponent, the claimant may procure a final award for the acknowledged part of the claim. This provision was not provided for under the previous law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While the Amended Law did not introduce significant changes to the interpretation and correction of the final award, it provides that the explanatory award and the corrected award must be presented to the court before which a party files for a set aside action. The Amended Law also provides for the possibility to submit the correction or interpretation application to the court of appeal in the event that it is not possible for the arbitral tribunal to convene for making that correction or interpretation. Also, with regards to any additional awards made by the arbitral tribunal in connection with any missed part of the claim, the additional award shall take the form of an addendum and shall constitute part of the award. The additional award must also be submitted to court where a party files for a set aside action.</p>\r\n&nbsp;\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Award Set Aside and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law introduces a major significant change with regards to set aside actions. Under the previous regime, a set aside action could only be submitted to the court of appeal and its decision to set aside could be appealed before the cassation court. However, in the event that the court of appeal dismissed the set aside action and decided to uphold the arbitration award, such a decision could not be appealed against. The Amended Law stipulates that the only competent court for the purpose of filing a set aside action is now the cassation court, thereby reducing the stages of appeal to only one in the event that the cassation court rules to set aside the arbitration award. Therefore, should the cassation court rule to set aside the award, neither party further may appeal the decision. This is in contrast to the previous law under which there were two steps to an appeal since a set aside order by the court of appeal was subject to appeal before the cassation court.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Previously, the arbitration law provided that a decision to set aside an arbitration award would consequently render the arbitration agreement nullified as it results in litigation unless both parties agree on further arbitration. The Amended Law however provides that a decision to set aside an arbitration award does not affect the arbitration agreement unless such an agreement was in itself null void. This consequently means that the disputing parties, in the event an arbitration award is set aside, must resort again to arbitration as a method of dispute resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Amended Law also transferred the role of examining enforcement applications to the sole jurisdiction of the cassation court as opposed to the court of appeal as was the case under the previous law. The Amended Law has withdrawn a party’s right to appeal the court’s decision rejecting enforcement due to incorrect service of summons or due to impossibility of enforcement when the award itself contravenes with public order.</p>\r\n&nbsp;<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of Jordan’s efforts to stimulate its economy and attract foreign investments, the Amended Law provides a comprehensive reform to the legislative framework of arbitration in Jordan. It undoubtedly provides a more modern and secure means of dispute resolution through arbitration in line with most internationally recognised arbitration guidelines and practices. With the Amended Law, arbitrating in Jordan is expected to gain new traction.</p>\r\n&nbsp;\r\n\r\n&nbsp;<em><img class=\"alignleft size-full wp-image-8043\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/Screen-Shot-2018-07-31-at-6.31.28-PM.png\" alt=\"\" width=\"3994\" height=\"1378\" />For further information please contact Sara Koleilat-Aranjo (s.aranjo@tamimi.com) or Dana Al Shawa (d.alshawwa@tamimi.com).</em>'),
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(270450, 26117, 'ReportText', '<img class=\"size-full wp-image-8012 aligncenter\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/DG.jpg\" alt=\"\" width=\"1536\" height=\"417\" />\r\n\r\n&nbsp;\r\n\r\nSaudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8080 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_543298087-1024x1024.jpg\" alt=\"\" width=\"272\" height=\"272\" />Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright wp-image-8011\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/676.jpg\" alt=\"\" width=\"528\" height=\"213\" />Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.\r\n\r\n<img class=\"size-full wp-image-8081 aligncenter\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/srfs.jpg\" alt=\"\" width=\"829\" height=\"171\" />|Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.'),
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INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(270447, 26117, 'MetaValueOld', '<img class=\"size-full wp-image-8012 aligncenter\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/DG.jpg\" alt=\"\" width=\"1536\" height=\"417\" />\r\n\r\n&nbsp;\r\n\r\nSaudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8080 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_543298087-1024x1024.jpg\" alt=\"\" width=\"272\" height=\"272\" />Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignright wp-image-8011\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/676.jpg\" alt=\"\" width=\"528\" height=\"213\" />Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.\r\n\r\n<img class=\"size-full wp-image-8081 aligncenter\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/srfs.jpg\" alt=\"\" width=\"829\" height=\"171\" />'),
(275868, 26585, 'MetaValueOld', 'Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.');
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(268997, 25994, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\">Expo 2020 aims to attract over 180 participating nations’, multi-national as well as small and medium sized corporates, and millions of people into the United Arab Emirates (\"UAE\") and the Emirate of Dubai, in order to celebrate human innovation. The logistics of managing the risks associated with vast numbers of visitors has its challenges. In this article, we look at the arrangements in place to ensure health needs are identified and supported, not only while on the Expo site, but while in-country.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The regulator responsible for the delivery of health services to the national population, expatriate residents and visitors in Dubai is the Dubai Health Authority (\"DHA\"). As most visitors are expected to fly into Dubai and make this Emirate their base during the visit, it is expected that DHA will shoulder much of the burden of ensuring it caters for the delivery of health services.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Expo Health Framework</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of it’s advance planning, DHA has developed an Expo 2020 DHA Contribution &amp; Support Framework (\"Health Framework\"), planning ahead in order to be suitably prepared and resourced to provide the best health and organisational services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Health Framework identifies key strategic objectives which are directly linked to the objectives of the Expo:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Position Dubai as a global medical destination by introducing a value-based, comprehensive, integrated and high quality service delivery system;</li>\r\n 	<li dir=\"LTR\">Direct resources to ensure healthy and safe environment for Dubai population;</li>\r\n 	<li dir=\"LTR\">Promote public and private collaboration in Healthcare;</li>\r\n 	<li dir=\"LTR\">Foster innovation across the continuum of care;</li>\r\n 	<li dir=\"LTR\">Revamp the governance structure of DHA; and</li>\r\n 	<li dir=\"LTR\">Establish efficient decision support systems by ensuring an integrated data platform.</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8098 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_356309201-1-958x1024.jpg\" alt=\"\" width=\"412\" height=\"441\" />Unified process for managing the health of Expo visitors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">DHA has developed a service charter for the Emirate of Dubai especially for Expo 2020 which caters for the needs of customers, visitors, and investors. Prior to the commencement of Expo 2020, DHA will create and use multiple communications channels to raise awareness of it’s commitment to providing information regarding the availability of health insurance, healthcare services, medical tourism and highlighting Dubai as a leading healthcare hub.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For participants and visitors requiring a visa (which in-turn requires having a medical fitness examination) DHA will provide medical ﬁtness services in an innovative way to ensure that the experience upon arrival is fast and efficient. This is expected to include processing visitors through an airport clinic upon arrival into the emirate, and a process to link all medical reports with the uniﬁed electronic ﬁle and the public health control system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While staying in Dubai, DHA will provide primary healthcare services, emergency services and specialised medical services through it’s integrated hospital network of facilities and clinics. It is also expected to have a clinic on-site at Expo 2020, which again will link all medical reports with the uniﬁed electronic ﬁle system and the public health control system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When the visitor then leaves the country DHA will provide all health reports to the visitor through a secure electronic portal called \"my chart\".</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Priority projects and initiatives of DHA that are related to Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the key strategic objectives DHA is in the process of rolling-out identified priority projects and initiatives related to Expo 2020.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hasana</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Public Health Surveillance Network that aims to monitor and reduce the spread of infectious diseases, follow up basic vaccinations and manage vaccination campaigns in Dubai.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sheryan</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A network of healthcare specialists among the UAE’s health authorities as the only source of approved data for the issuance of temporary medical licenses to some professionals enabling them to take care of the needs of exhibitors and visitors at Expo 2020.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Heart Safe City Initiative</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Developing an effective response system to make Dubai the \"Heart Safe City\" in the world by adopting healthy innovations to combat heart attacks.<b></b></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Salama</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The uniﬁed electronic medical ﬁle The uniﬁed electronic medical ﬁle that aims to create a uniﬁed electronic record for each patient, available in all the centers of DHA. It also provides doctors with accurate data on patients to help them in decision making, to achieve the best medical outcomes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Strategy for Investment in the Health Care Sector Strategy for investment in the health care sector and partnership with the private sector, including investment in the Emirate and the service of Expo 2020</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Salem</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An integrated intelligent system designed to improve the customer’s journey, reduce waiting time, and provide all services in one place, with the best methods, electronic systems and smart technologies.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Health Experience</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A web site which will include a variety of travel information including how to obtain a UAE visa (if required), in addition to the option of booking the hotel and the round-trip tickets on Emirates Airlines. The site includes more than 17 hospitals, 45 health facilities and more than 600 health packages.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Health Facilities Performance Assessment System</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A smart system measuring the performance of all health facilities in Dubai including an integrated star rating system that will be available for the public in the emirate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>DHA Central Call Center</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A central Call Center as DHA’s ﬁrst line of customer service, responding to customer’s inquires, booking medical appointments and ease the communication of customers with DHA through telephone, website and social media channels.</p>\r\n<em>Disclosed Source: DHA Expo 2020 DHA Contribution &amp; Support Framework</em>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Medical tourism and innovation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Dubai seeks to establish itself as a global hub for health tourism and innovation. In order to realise these objectives it is critical that the government of Dubai and DHA have a clear vision and strategy which will utilise Expo 2020 as a showcase for its services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Recent legislative changes should improve the attractiveness of the emirate as a destination for medical tourism and innovation. Developments include new telehealth regulations, and initiatives based around the concept of ‘wellness’, that in turn are aligned with the ‘Emirates Vision 2021’ and emphasise the importance of preventive medicine to combat an increase in the prevalence of lifestyle-related diseases, and to identify and treat cancer, which is the third-leading cause of death in the country, after heart disease and accidents.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Public Private Partnerships</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DHA Investment Strategy 2017- 2020 has created an investment strategy that \"Promote[s] Dubai as a viable and competitive hub for Investment In healthcare that address the needs of the Emirate and the future opportunities, and provide the best service for Investors and enable sustainable public-private model[s] in Dubai.\" Initiatives range from creating incentives to promote public private partnership (\"PPP\") investment, to reviewing and implementing regulatory changes that might encourage investment. A new piece of legislation is expected to be published later this year regarding PPPs in healthcare projects. These new and rapid changes are creating an attractive opportunity for foreign investment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">DHA has adopted a series of initiatives that will create a service delivery network of healthcare services for the Expo 2020 event, but that will also create opportunities for inward investment into the medical tourism and innovation strategy, thus ensuring it’s own Expo legacy.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s healthcare team regularly advises on Middle East healthcare strategy, regulatory developments, and commercial matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em></p>'),
(268996, 25994, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\">Expo 2020 aims to attract over 180 participating nations’, multi-national as well as small and medium sized corporates, and millions of people into the United Arab Emirates (\"UAE\") and the Emirate of Dubai, in order to celebrate human innovation. The logistics of managing the risks associated with vast numbers of visitors has its challenges. In this article, we look at the arrangements in place to ensure health needs are identified and supported, not only while on the Expo site, but while in-country.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The regulator responsible for the delivery of health services to the national population, expatriate residents and visitors in Dubai is the Dubai Health Authority (\"DHA\"). As most visitors are expected to fly into Dubai and make this Emirate their base during the visit, it is expected that DHA will shoulder much of the burden of ensuring it caters for the delivery of health services.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Expo Health Framework</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As part of it’s advance planning, DHA has developed an Expo 2020 DHA Contribution &amp; Support Framework (\"Health Framework\"), planning ahead in order to be suitably prepared and resourced to provide the best health and organisational services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Health Framework identifies key strategic objectives which are directly linked to the objectives of the Expo:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Position Dubai as a global medical destination by introducing a value-based, comprehensive, integrated and high quality service delivery system;</li>\r\n 	<li dir=\"LTR\">Direct resources to ensure healthy and safe environment for Dubai population;</li>\r\n 	<li dir=\"LTR\">Promote public and private collaboration in Healthcare;</li>\r\n 	<li dir=\"LTR\">Foster innovation across the continuum of care;</li>\r\n 	<li dir=\"LTR\">Revamp the governance structure of DHA; and</li>\r\n 	<li dir=\"LTR\">Establish efficient decision support systems by ensuring an integrated data platform.</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8098 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_356309201-1-958x1024.jpg\" alt=\"\" width=\"412\" height=\"441\" />Unified process for managing the health of Expo visitors</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">DHA has developed a service charter for the Emirate of Dubai especially for Expo 2020 which caters for the needs of customers, visitors, and investors. Prior to the commencement of Expo 2020, DHA will create and use multiple communications channels to raise awareness of it’s commitment to providing information regarding the availability of health insurance, healthcare services, medical tourism and highlighting Dubai as a leading healthcare hub.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For participants and visitors requiring a visa (which in-turn requires having a medical fitness examination) DHA will provide medical ﬁtness services in an innovative way to ensure that the experience upon arrival is fast and efficient. This is expected to include processing visitors through an airport clinic upon arrival into the emirate, and a process to link all medical reports with the uniﬁed electronic ﬁle and the public health control system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">While staying in Dubai, DHA will provide primary healthcare services, emergency services and specialised medical services through it’s integrated hospital network of facilities and clinics. It is also expected to have a clinic on-site at Expo 2020, which again will link all medical reports with the uniﬁed electronic ﬁle system and the public health control system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">When the visitor then leaves the country DHA will provide all health reports to the visitor through a secure electronic portal called \"my chart\".</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Priority projects and initiatives of DHA that are related to Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In line with the key strategic objectives DHA is in the process of rolling-out identified priority projects and initiatives related to Expo 2020.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hasana</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Public Health Surveillance Network that aims to monitor and reduce the spread of infectious diseases, follow up basic vaccinations and manage vaccination campaigns in Dubai.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Sheryan</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A network of healthcare specialists among the UAE’s health authorities as the only source of approved data for the issuance of temporary medical licenses to some professionals enabling them to take care of the needs of exhibitors and visitors at Expo 2020.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Heart Safe City Initiative</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Developing an effective response system to make Dubai the \"Heart Safe City\" in the world by adopting healthy innovations to combat heart attacks.<b></b></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Salama</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The uniﬁed electronic medical ﬁle The uniﬁed electronic medical ﬁle that aims to create a uniﬁed electronic record for each patient, available in all the centers of DHA. It also provides doctors with accurate data on patients to help them in decision making, to achieve the best medical outcomes.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Strategy for Investment in the Health Care Sector Strategy for investment in the health care sector and partnership with the private sector, including investment in the Emirate and the service of Expo 2020</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Salem</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An integrated intelligent system designed to improve the customer’s journey, reduce waiting time, and provide all services in one place, with the best methods, electronic systems and smart technologies.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Health Experience</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A web site which will include a variety of travel information including how to obtain a UAE visa (if required), in addition to the option of booking the hotel and the round-trip tickets on Emirates Airlines. The site includes more than 17 hospitals, 45 health facilities and more than 600 health packages.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Health Facilities Performance Assessment System</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A smart system measuring the performance of all health facilities in Dubai including an integrated star rating system that will be available for the public in the emirate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>DHA Central Call Center</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A central Call Center as DHA’s ﬁrst line of customer service, responding to customer’s inquires, booking medical appointments and ease the communication of customers with DHA through telephone, website and social media channels.</p>\r\n<em>Disclosed Source: DHA Expo 2020 DHA Contribution &amp; Support Framework</em>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8099 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_242389561.jpg\" alt=\"\" width=\"552\" height=\"310\" />Medical tourism and innovation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Dubai seeks to establish itself as a global hub for health tourism and innovation. In order to realise these objectives it is critical that the government of Dubai and DHA have a clear vision and strategy which will utilise Expo 2020 as a showcase for its services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Recent legislative changes should improve the attractiveness of the emirate as a destination for medical tourism and innovation. Developments include new telehealth regulations, and initiatives based around the concept of ‘wellness’, that in turn are aligned with the ‘Emirates Vision 2021’ and emphasise the importance of preventive medicine to combat an increase in the prevalence of lifestyle-related diseases, and to identify and treat cancer, which is the third-leading cause of death in the country, after heart disease and accidents.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Public Private Partnerships</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DHA Investment Strategy 2017- 2020 has created an investment strategy that \"Promote[s] Dubai as a viable and competitive hub for Investment In healthcare that address the needs of the Emirate and the future opportunities, and provide the best service for Investors and enable sustainable public-private model[s] in Dubai.\" Initiatives range from creating incentives to promote public private partnership (\"PPP\") investment, to reviewing and implementing regulatory changes that might encourage investment. A new piece of legislation is expected to be published later this year regarding PPPs in healthcare projects. These new and rapid changes are creating an attractive opportunity for foreign investment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">DHA has adopted a series of initiatives that will create a service delivery network of healthcare services for the Expo 2020 event, but that will also create opportunities for inward investment into the medical tourism and innovation strategy, thus ensuring it’s own Expo legacy.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Al Tamimi &amp; Company’s healthcare team regularly advises on Middle East healthcare strategy, regulatory developments, and commercial matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com).</em></p>'),
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(277060, 26691, 'MetaValueNew', 'Saudi Arabia is undergoing significant reform but, beyond the maelstrom of political speculation and conjecture, what are the practical and legal implications of the anti-corruption drive for investors?\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia has seen tumultuous reform in the last 12 months as Crown Prince Mohammed bin Salman has sought to propel Saudi Arabia towards Vision 2030. International attention has been riveted to the government’s surging anti-corruption drive since a number of high-profile individuals were detained on corruption charges towards the end of 2017. Much of this attention, however, has been tangential, without providing clear insight into what impact such radical measures will have on the country’s legal framework and business climate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft wp-image-8142\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_493075276-Converted-1024x682.png\" alt=\"\" width=\"452\" height=\"301\" />A Favourable Forecast? The Business Outlook on Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The extent and boldness of the recent measures taken in Saudi Arabia are indicative of the government’s resolve to eliminate corruption in the system. The Kingdom has been signatory to the United National Convention Against Corruption (UNCAC) since 2004, though it only ratified the agreement in 2013. The events that have garnered so much international attention are only the latest in a long-term initiative to address corrupt practices in the business sector. Between 2012 and 2017, Saudi Arabia has improved its score on the Transparency International Corruption Perceptions Index (CPI) from 44 to 49. Whilst this score still reflects significant room for improvement, it also charts measurable progress in a region that continues to face drastic change, and provides impetus for the more recent measures that clearly demonstrate the elevated priority of anti-corruption reform.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In order for the Kingdom to benefit from its drive for sustainability and prosperity, however, its determination to eradicate corruption must be symbiotic with its ability to assure investor confidence. The zero-tolerance approach that has surfaced over the past year has the potential to greatly improve the integrity of Saudi Arabia’s business market, but lingering concerns surround residual corruption with certain businesses continuing to question the feasibility and longevity of trading in the Kingdom.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The United Nations Conference on Trade and Development (UNCTD) World Investment Report 2018 suggests that, in the short term at least, the anti-corruption drive has done little to improve investor confidence and may even have exacerbated feelings of uncertainty. Inward Foreign Direct Investment (FDI) flows have fallen by more than 80% between 2016 and 2017. Whilst this trend cannot be entirely attributed to the anti-corruption sweep that happened late in the final quarter of the year, it is certainly likely to have been a contributory factor in unsettling investor confidence. From a long-term perspective, however, efforts to level the playing field in Saudi Arabia may bring fairer weather to businesses as the obstacles associated with pervasive corruption are gradually eliminated from the system.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Saudi Arabia is far from being alone in its fight against corruption; it is one of the most prevalent and pressing issues facing systems across the globe, and countries with endemic corruption problems face an almost insurmountable challenge to attract foreign investment. At this nascent stage, it would be premature to speculate as to how other Middle Eastern countries will respond to the Kingdom’s efforts, but the most desirable outcome would be for neighbouring countries to become emboldened in their own anti-corruption efforts. The UAE already stands as the regional outlier in anti-corruption efforts, with a CPI 2017 ranking of 21st in the world, comparable to many leading international jurisdictions. The combined efforts of both Saudi Arabia and the UAE could be instrumental in forging a clear path to greater transparency for other afflicted countries in the Middle East.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Staying Dry: Legal Safeguards Against Corruption In The Kingdom</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The primary anti-corruption provisions are provided by the anti-bribery law issued by Royal Decree No. M/36 of 29-Dhu al-Hijjah-1412 (corresponding to 30 June 1996) (the \"Anti-Bribery Law\"). More recently, a decree was issued setting out rules relating to gifts for public officials (Decree No. 60 dated 18 Safar 1437H (corresponding to 1 December 2015) (the \"Rules on Gifts to Officials\" or the \"Rules\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8141 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_360673856-1024x1024.jpg\" alt=\"\" width=\"419\" height=\"419\" />Bribery of Public Officials</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law is primarily focused on public servants. In order to maintain maximum protection for its public sector, the definition is intentionally broad, extending to personnel of joint stock companies, along with their board members and directors. It may also capture private sector individuals who are working on government-related projects, such as consultants to government projects, including temporary employees, experts appointed by the government or judiciary, or even employees of private companies contracted to provide public services. Employees of joint stock companies are also subject to the Anti-Bribery Law, as well as employees of companies and sole proprietorships engaged in banking services.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Anti-Bribery Law broadly defines a bribee as any public servant who solicits, accepts or receives for himself or for others, a gift or payment of any sort, or a promise thereof, as consideration for any act that impinges on the integrity of office. Defences against such practices are fortified by the absence of any exemption, caveat or even significant qualifying criteria for the type of act that could invoke bribery provisions. Any act can be considered corrupt, regardless of its legitimacy, whether it is a positive act or an omission, whether it has been done in the absence of a prior agreement, and even where it involves using the influence attached to a public office to gain benefit, rather than the performance of a relevant duty.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Given the traditionally prominent role of the government in the national economy, the Anti-Bribery Law does provide relatively wide protection, despite the obvious lack of corresponding safeguards applicable to the private sector. Privatisation targets encapsulated by Vision 2030, however, necessitate more complete protection and new measures that target both the public and private sector are a requirement going forward.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Penalties and Enforcement</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under the Anti-Bribery Law, penalties for the offences set out above can reach maximum penalties of imprisonment for a term not exceeding ten years and/or a fine not exceeding one million riyals (about USD 275,000).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Along with the specific penalties applicable to public servants who accept a bribe, it should be noted that the Anti-Bribery Law provides for the person offering the bribe (whether it is accepted or not), and any accomplice, to be susceptible to corresponding punishments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">To protect a culture of respect for public officials, conviction on bribery offences also leads to dismissal and a bar from public office for a minimum of five years. In an attempt to prevent perpetrators from benefitting from the proceeds of crime, the Anti Bribery Law provides that any money, benefit or privilege derived from committal of the offence be confiscated wherever possible.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8140 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_359012771-1024x1024.jpg\" alt=\"\" width=\"316\" height=\"316\" />Gifts and Hospitality</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">No exemptions are provided for gifts and hospitality in the Anti-Bribery Law. Any benefit or privilege obtained by the bribee, regardless of its type or designation, whether material or otherwise, shall be considered a (prohibited) gift or promise. This has led to confusion in the past, as conventional business practices that would be widely accepted in other systems appeared to invoke the strict anti-bribery restrictions.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This matter was somewhat elucidated with the passing of the Rules on Gifts to Officials. Pursuant to these Rules, an official may accept gifts, given at visits and official occasions or at receptions of official guests, in accordance with custom and the courtesy protocols of such visits and occasions, though they cannot be cash and must be conventional in the context in which it is given. Crucially, businesses must be cognisant that generally, when reviewing the appositeness of a gift, the authorities will consider a number of contextual factors, including the proximity of the gift-giving to any relevant business deal, common courtesy practices of the firm in question, proportionality of the gift to conventional customs, and the appropriateness of the benefit given.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Though further provisions on the permissibility of certain types of gifts are outlined in the Rules, gifts and hospitality continue to be point of concern for business and can prove problematic in a culture where generosity is an ever-present feature of relations.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Exposure for Corporate Entities</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Significantly, where the manager or any employee of a private company is convicted of any offence under the Anti-Bribery Law, and the offence was committed for the benefit of such company, the law provides for a fine not exceeding ten times the value of the bribe and/or a ban from entering into public procurement or project contracts of at least 5 years. The briber can be exempted from punishment if he informs the authorities prior to the discovery of the offence, and this may provide some means by which corporate entities can limit their exposure upon becoming aware of any apparent offences under the Anti-Bribery Law.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Preparing for the Tempest: Bolstering Defences Ahead Of Reform</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a strategic perspective, since bribery is rarely an isolated issue, responses need to be thorough and comprehensive; part of an overarching coordinated national strategy that provides protection across an entire economic system and all branches of government. In order to ensure that such strategies are effective and aligned across institutions and businesses, they require constant monitoring and enforcement by a dedicated and independent authority, Where these institutions also act as the recipient in a sound and efficient reporting mechanism, the presence of a clear and trustworthy process increases the confidence of international investors.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Aside from the well-publicised arrests, Saudi Arabia’s corruption reform has extended to measures in other parts of its anti-corruption framework that have more sustainable implications for how it will address corrupt practices in future. These bold new mechanisms also enhance the country’s invigorated anti-corruption culture, which marks an abrupt departure from its previous presumed reticence on corruption matters.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-8139 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_336708881-Converted-1024x1024.png\" alt=\"\" width=\"431\" height=\"431\" />Newly-formed Supreme Committee for Anti-Corruption</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The formation of the Supreme Committee is indicative of the greater strategic importance of anti-graft efforts to the country’s wider reform programme. Chaired by the Crown Prince and comprised of high-ranking officials from various sectors of governance, including security, finance and existing anti-corruption bodies, the Committee acts as a mechanism that will immediately elevate corruption instances to the remit of the highest echelons of government. In so doing, the Kingdom is sending a strong message that it will no longer turn a blind eye to practices that compromise its financial system or rule of law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new Supreme Committee will have vastly advanced investigative and prosecutorial powers, including the capacity to issue arrest warrants and order interim measures such as issuing travel bans and asset freezing orders. This is a critical limitation of the existing National Anti-Corruption Commission, more commonly known as Nazaha, which was established in 2012 and has limited capacity, despite its function as the primary recipient of reports of corrupt activity. The new committee will not replace Nazaha, which will continue to target the protection of national integrity, investigate instances of graft in government contracts and refer any incidents to the relevant authorities and public prosecution as and when necessary.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By coordinating the activities of both the Supreme Committee and Nazaha, the efficacy of existing measures will be boosted by covering a wider scope of prosecutorial powers, increased authority with which to pursue perpetrators, and greater scrutiny through public awareness.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Specialised Anti-corruption Units Within the Public Prosecution Department</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">As an additional measure, the Saudi government announced as recently as March 2018 that it had established new specialised anti-corruption units within the Public Prosecution. Cases prosecuted by these units would be carried out under the direct oversight of the Attorney General, once again demonstrating the paramount importance of corruption-related cases. Though it is unclear when the dedicated units will become operational, in creating this new advanced capacity the Saudi government has improved its ability to investigate and prosecute corrupt activity and, in so doing, will add an extra deterrent against illicit practices.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Whistleblower Culture</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whistleblower protection is a significant point of departure in many regimes across the globe. Whilst some Western systems, such as the US, actively promote whistleblowing activity through substantial financial incentives, most countries in the Middle East have thus far been slow to introduce formal protection for whistleblowers, preferring instead to rely on a positive reporting duty and conscionable actions by citizens.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In this context, Saudi Arabia’s more proactive approach appears as an outlier. Article 17 of the Anti-Bribery Law provides for rewards for information substantiating an offence. Any person who is not a briber, or an accomplice, and who provides incriminating information substantiating any offence set out in Anti-Bribery Law, shall receive a reward not less than five thousand riyals (about USD 1,350) and not more than half of the money confiscated. There may be scope for a higher reward to be approved in appropriate circumstances.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In addition, King Salman’s recent order in May 2018 to provide whistle blower protection is progressive in its outlook and signifies Saudi Arabia’s willingness to accede to international standards of rights and transparency when it comes to prosecuting corruption crimes. If Saudi Arabia is mindful of the risks posed by the potential for spurious claims and introduces adequate measures to prevent abuse of the reporting system, whistle blower protection is yet a further measure that will likely serve to reinforce the culture of zero tolerance that Saudi Arabia is attempting to cultivate.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Impending Amendments to the Anti-Bribery Law</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 2 July 2018, Saudi Arabia’s Shoura (Consultative) Council approved draft amendments to the Anti-Bribery Law. The changes, which are yet to be implemented, are reportedly aimed at providing enhanced protection to public utilities through sound prosecution procedures and severe punishment for offences, as well as further enshrining the principles and commitments contained in the United Nations Convention Against Corruption (UNCAC). At present, the extent and exact nature of the amendments are unknown, but once officially passed into law, they have the potential to radically modernise Saudi Arabia’s anti-bribery legislation. This critical development warrants close attention over the coming months as the process to implementation progresses, and could assist investors in assessing the long-term outlook for Saudi Arabia’s economic integrity.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"alignleft  wp-image-8146\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/shutterstock_683715055-Converted-1024x754.jpg\" alt=\"\" width=\"533\" height=\"392\" />A Weather Eye on the Horizon: Is Further Change an Inevitability?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Anti-corruption measures are an ancillary part of the legal reform process in KSA, but do not represent the totality of the country’s ongoing transition. New money-laundering laws passed in October 2017 are emblematic of the Kingdom’s resolve to eradicate illicit practices from its system. Corruption is symptomatic of countries where there is weak rule of law, but Saudi Arabia’s legal fortifications will go a long way to stamping out the nexus of criminal behaviour that facilitates and drives corruption trends. These are important contributory factors that should be considered by foreign investors when making an assessment of Saudi Arabia’s economic security.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The changes that have already been implemented will only improve the prognosis of anti-corruption in Saudi Arabia. The continued momentum garnered from these initiatives will drive awareness of corruption problems, aided by the combined activity of Nazaha and the newly formed Supreme Committee for Anti-Corruption.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is a pivotal time for Saudi Arabia and the long-term outlook is positive – there is already evidence of widespread reform to protect the Kingdom’s economic stability and integrity and address systemic weaknesses. Simultaneously, the changes that have been gradually introduced by Saudi Arabia’s General Investment Authority (SAGIA) since 2015 to liberalise the national economy and provide space for full foreign ownership in key sectors, are creating new incentive for foreign investors to tap into the largest market in the Middle East.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Equally, investors must strike the appropriate balance between caution and enthusiasm when encountering new opportunities in the market. Corruption challenges are persistent and pervasive and will require sustained redress for the foreseeable future. Though it is yet undetermined what new mechanisms and measures may be deployed in the Kingdom in future, it is likely that subsequent steps taken to quash illicit practices will have considerable consequences for domestic and foreign investors alike. This will require that foreign investors understand the legal framework and secure their interests against inevitable shifts in the Saudi market as reform measures revolutionise the domestic business culture.</p>\r\nOverall, however, Saudi Arabia’s recent multifaceted approach to reform has created the perfect storm for investors and, with an impending multitude of investment projects, businesses have a prime opportunity to invest at the leading edge of FDI, assured that corrupt practices are not operating with impunity.'),
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