INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(257572, 25031, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>'),
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(257601, 25034, 'PostTitle', 'Can a Main Contractor prevent an Employer from appointing a New Main Contractor?'),
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(257611, 25035, 'PostTitle', 'Can a Main Contractor prevent an Employer from appointing a New Main Contractor?'),
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(257614, 25035, 'PostDate', '2018-08-01 07:44:28'),
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(257618, 25035, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
(257619, 25035, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
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(257622, 25035, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).|<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
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(258039, 25072, 'ReportText', 'Faisal advises multinational clients on corporate structuring, commercial transactions and regulatory issues concerning foreign investment in Kuwait.\r\n\r\nPrior to joining Al Tamimi &amp; Company, Faisal clerked for Ron L. Meyers and Associates in New York City, where he assisted the Senior Partner in real estate transactions and finance. His work involved helping clients through every step of real estate purchases and sales in New York City, including navigating regulatory hurdles, overcoming landlord/tenant issues and negotiating with the various parties involved in land and property transfers.\r\n\r\nDuring law school, Faisal managed a real estate investment fund, focused on acquisition of rehab properties and converting these rehab properties to turn-key rentals. Prior to law school, Faisal worked for the Department of Homeland Security (DHS) as an Immigration Analyst, managing asylum cases of detained or recently released asylum applicants. During his time with DHS, Faisal was also assigned to overseas assignments in Baghdad, Iraq and Amman, Jordan, where Faisal was responsible for assisting in background checks of Special Immigrant Visa applicants and their families, who were involved in aiding the United States military during and post Operation Iraqi Freedom. Prior to his employment with the Department of Homeland Security, Faisal served in the United States Army.|Faisal is an Associate with the Corporate/Commercial department where he advises multinational clients on corporate law, commercial transactions and regulatory issues concerning foreign investment in Kuwait and in neighboring GCC nations.\r\n\r\nPrior to joining Al Tamimi &amp; Company, Faisal clerked for Ron L. Meyers and Associates in New York City, where he assisted the Senior Partner in real estate transactions and finance. His work involved helping clients through every step of real estate purchases and sales in New York City, including navigating regulatory hurdles, overcoming landlord/tenant issues and negotiating with the various parties involved in land and property transfers.\r\n\r\nDuring law school, Faisal managed a real estate investment fund, focused on acquisition of rehab properties and converting these rehab properties to turn-key rentals. Prior to law school, Faisal worked for the Department of Homeland Security (DHS) as an Immigration Analyst, managing asylum cases of detained or recently released asylum applicants. During his time with DHS, Faisal was also assigned to overseas assignments in Baghdad, Iraq and Amman, Jordan, where Faisal was responsible for assisting in background checks of Special Immigrant Visa applicants and their families, who were involved in aiding the United States military during and post Operation Iraqi Freedom. Prior to his employment with the Department of Homeland Security, Faisal served in the United States Army.'),
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(258201, 25086, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>'),
(258202, 25086, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>'),
(258203, 25086, 'MetaLink', 'content'),
(258204, 25086, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=7937&amp;action=edit'),
(258205, 25086, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7968 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/13-1024x681.jpg\" alt=\"\" width=\"487\" height=\"324\" />The new DIFC Companies Law is expected to come into force in August / September 2018. The new law will make a number of major changes to the rules governing DIFC-established companies, including:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the removal of the category of limited liability companies (as an option to the company limited by shares) and the introduction of differing regulatory requirements imposed on private and public companies respectively; and</li>\r\n 	<li dir=\"LTR\">the introduction of more detailed and explicit provisions imposing and regulating directors’ duties.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">This article concerns the most innovative feature of the new law, the introduction of a legal framework for corporate schemes of arrangement.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A scheme of arrangement is a process which empowers companies to enter an array of binding arrangements and agreements with its shareholders and/or creditors as classes. Where an arrangement is supported by 75% of the relevant classes of creditors or shareholders, the Court has power to sanction it and to bind all the stakeholders, including any dissenting minority. Schemes of arrangement are used extensively in England and in other common law jurisdictions, so it is a welcome innovation for DIFC companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The legal process for schemes of arrangement was originally developed in England but the new DIFC provisions are closely modelled on Jersey law, which is less detailed and prescriptive than the legislation now applying in England and Wales. The DIFC provisions relating to compromises and arrangements can be found in Articles 124 to 126 of the new Companies Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>How are Schemes Commonly Used?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Schemes of arrangement are extremely flexible and the legislation does not restrict the form or content of the compromise or arrangement. Here are a number of examples of how schemes have been employed successfully in the UK:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\"><strong>Reducing debt and carrying out debt for equity swaps</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Sometimes, a scheme of arrangement can be used to reduce the value of claims from both secured and unsecured creditors. Debt reduction can occur as part of a compromise, where creditors agree to accept a pro-rated percentage of the total debt so the company can continue to be viable. Often, in these circumstances, a creditor will ‘swap’ some of its debt in the company for equity in a new holding company. This reduces the debt of the operating company, allows it to continue trading and provides for a cash injection into the new holding company.</p>\r\n<p style=\"padding-left: 60px;\"><em>For example, in the Countrywide plc case, the company had issued senior secured loan notes worth £470 million which were reduced to £175 million and the holder of the senior secured loan notes agreed to inject capital into a new holding company in return for 35% of the equity in that company. In addition, it was agreed to convert unsecured loan notes worth £170 million to 5% of equity in the new holding company. The proposal was supported by the majority of the loan note holders and so the court approved the agreement.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>An alternative to liquidation</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\"><em>Schemes can also be used as an alternative to a formal liquidation process. The terms of the scheme will prescribe a distribution of the company’s assets between the creditors. This can be helpful when there are a number of contingent claims which may be difficult to quantify and would delay the liquidation process or where assets of a group of companies are difficult to identify as owned by a particular member of a group.</em></p>\r\n\r\n<ul>\r\n 	<li><em><strong>Where the company seeks to assure future solvency by \"ring fencing\" contingent claims</strong></em></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In <em>Re Cape plc &amp; Ors</em>, Cape plc and its subsidiary companies called a meeting of creditors to approve a solvent scheme of arrangement.</p>\r\n<p style=\"padding-left: 60px;\">Cape plc’s group business was asbestos mining and the manufacture, distribution and installation of asbestos products. The company was solvent, but faced many future contingent claims due to its employees’ past exposure to asbestos dust. Given the slow emergence of medical problems caused by exposure to asbestos, it was clear that the company would face claims in the future, but at the time of proposing the scheme noone could quantify the value of these claims with precision.</p>\r\n<p style=\"padding-left: 60px;\">The scheme of arrangement was designed to protect the group’s ongoing businesses from the asbestos claims, whilst at the same time diverting a percentage of its earnings into a sinking fund for the payment of those claims. The Court approved the proposed scheme, thereby allowing Cape plc to create a subsidiary company to deal with all present and future claims, effectively ring-fencing the rest of the Cape group from the disruptive effect of the claims.</p>\r\n\r\n<ul>\r\n 	<li><strong>Takeovers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">Schemes of arrangement are used in the UK as an alternative way to implement a company takeover rather than following the City Code on Takeovers and Mergers Takeover Regulations (\"UK Takeover Regulations\"). Consent is only required from 75% of the shareholders for all shareholders to be bound and liable to compulsory acquisition; whereas 90% of the shareholders are required to consent under the UK Takeover Regulations to achieve a ‘squeeze-out’.</p>\r\n<p style=\"padding-left: 60px;\">An example of this in practice is the case of TDG plc. There the company applied for an order under the Companies Act 2006 sanctioning a scheme of arrangement, the object of which was to facilitate the acquisition of shares in the company by a buyer. A minority shareholder opposed the approval of the scheme. The scheme was approved by the court as reasonable so all shareholders were bound to transfer their shares to the acquiring company.</p>\r\n<p style=\"padding-left: 60px;\">The provisions of the old DIFC Companies law in respect of takeovers contain the same threshold to that of the UK Takeover Regulations (consent of 90% of the shareholders). The introduction of the New Law will enable all shareholders to be bound by the arrangement with only the consent of 75% of the shareholders. This is likely to facilitate takeovers in the DIFC, particularly in circumstances where there are dissenting or ‘lost’ shareholders. The provisions can also be used to implement a ‘squeeze-out’.</p>\r\n\r\n<ul>\r\n 	<li><strong>Demergers</strong></li>\r\n</ul>\r\n<p style=\"padding-left: 60px;\">In the case of BGEO Group plc the applicant company applied for the court to sanction a scheme of arrangement to split its investment business from its banking business. The scheme involved the insertion of a new holding company and, once the scheme had taken effect, the demerger of the group’s two businesses. The new holding company would undertake a swap reduction of capital for the purpose of demerging the investment business. The shareholder agreed to swap their shares in the applicant company for shares in the new holding company on a one-for-one basis.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Benefits to companies incorporated in the DIFC</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The new provisions will open up wide range of flexible options for restructuring debt or equity. In certain scenarios, additional requirements of the DIFC companies law will also need to be taken into account, in particular the rules governing any return of capital to shareholders, so there may need to be parallel compliance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What types of compromises or arrangements will be approved?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subject to the required formalities and approvals, schemes can be used to bind all shareholders of the relevant class(es) of creditors and/or shareholders to almost any type of reorganisation. Nothing in the new law limits the subject matter of a scheme. In theory a scheme could be a compromise or arrangement between a company and its creditors or shareholders about anything which they can properly agree amongst themselves.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, a scheme must be a ‘genuine’ and ‘effective’ arrangement or compromise. This means that the shareholders and creditors of the company which participate in the scheme must obtain some advantage in compensation for the scheme’s alteration of their pre-scheme rights entitlements.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The procedure</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">For a company to obtain a sanctioned compromise or arrangement in accordance with the New Law, the following steps will need to be undertaken:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The person proposing the scheme of arrangement must seek a court order to convene creditor and/or shareholder meetings (as relevant) in order to vote on the proposed scheme;</li>\r\n 	<li dir=\"LTR\">The notice calling for the meeting whether by letter or advertisement, must include a statement containing details of; (i) the effect of the proposed compromise or arrangements, (ii) material interests of the directors of the company in the arrangement, (iii) if any debentures have been issued by the company how the arrangement or compromise would affect the rights of the debenture holders; and (iv) any other matter which would have a material impact on the company, its creditors and shareholder.</li>\r\n 	<li dir=\"LTR\">Compromise or arrangement schemes require approval by at least 75% in value of each class of the creditors who vote on the compromise or arrangements or the holders of 75% of the voting rights of the shareholders or class of shareholders, as the case may be, present and voting either in person or by proxy at the meeting;</li>\r\n 	<li dir=\"LTR\">After the scheme has been approved by the shareholders or creditor, it must then be sanctioned by the court;</li>\r\n 	<li dir=\"LTR\">Any interested shareholder or creditor can be represented when the court considers the application to sanction the scheme, and may argue for or against the sanctioning of the scheme.</li>\r\n 	<li dir=\"LTR\">A copy of the court order must then be sent to the Registrar and the Registrar will ensure that a copy of the court order is included in the company’s articles of association.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">Applications for a scheme of arrangement can be made by the company, a creditor or shareholder or in the case of a company being wound up its liquidator.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of schemes of arrangement in the DIFC paves the way to greater flexibility in implementing a range of sophisticated deals within the DIFC from equity swaps, to demergers, to corporate turnarounds.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate and Commercial team regularly advises on restructuring and take over arrangements. For further information please contact Anna Robinson, a.robinson@tamimi.com or Richard Catling, r.catling@tamimi.com.</em>'),
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(258350, 25099, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-7986 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/74.png\" alt=\"\" width=\"1159\" height=\"389\" /></strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Admissibility and Reliability of Electronic Evidence before Qatari courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Do the Qatari courts recognize a contractual relationship that results from an electronic transaction? Do the courts regard electronic evidence, such as emails and electronic receipts as admissible and reliable?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Prior to the recent judgment of the Court of Cassation, the answer to the above questions would be negative. In fact, the Qatari courts had previously dismissed a few cases by denying the admissibility of electronic evidence following a challenge to its validity by the other party. In those cases, the courts held that there was no evidence reflecting the existence of the contractual relationship between the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, in reliance on Law No. 16 of 2010 Promulgation of the Electronic Commerce and Transactions Law (\"The Electronic Commerce Law\"), the Court of Cassation has introduced a new principle which is considered to be a turning point for the admissibility and reliability of electronic evidence in litigation cases in Qatar.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background to the Case</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant had supplied and installed some medical equipment for the Defendant. The Claimant requested the Defendant to pay the outstanding amount for such service. However, the Defendant failed to pay any of the outstanding amounts. The Claimant sent email reminders to the Defendant requesting the Defendant to respect their agreement and pay the outstanding amounts, but the Defendant failed to respond and failed to pay the outstanding amounts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Case at First Instance:</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2012, the Claimant filed a civil case against the Defendant claiming the outstanding amount in addition to compensation as result of the non-payment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Defendant argued that the case must be dismissed, alleging that there was no existing contractual relationship with the Claimant. In addition, the Defendant challenged the validity of the photocopies of the supporting documents submitted by the Claimant to substantiate the case.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance appointed an expert to review the case. He reported that there was correspondence which proved the existence of the contractual relationship between the parties, in addition to bank statements evidencing the partial payment of the outstanding amount made by the Defendant.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The First Instance Court dismissed the case based on the following grounds:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The absence of evidence proving the existence of the contractual relationship between the Claimant and Defendant.</li>\r\n 	<li dir=\"LTR\">The Claimant’s inability to provide any original documents, all the submitted documentary evidence being photocopies - accepting the Defendant’s challenge to the validity of the same.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Ruling of the Court of Appeal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant appealed the decision of the Court of First Instance before the Court of Appeal. The Court of Appeal upheld the finding of the Court of First Instance and dismissed the appeal in 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Judgment of the Court of Cassation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant challenged the decision of the Court of Appeal before the Court of Cassation. The Claimant relied on the ground that the Court of First Instance erred in its reasoning and application of the law on the facts of the case. The Claimant submitted that the Court of Appeal dismissed the case in contradiction of the following documents:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The Claimant submitted documentary evidence such as photocopies of emails to prove the contractual relationship between the parties.</li>\r\n 	<li dir=\"LTR\">In addition, the \"copy\" document submitted by the Claimant was only copy of the bank statement to prove that the Defendant had already made partial payment for the outstanding amount due to the Claimant.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation accepted the Claimant’s argument and reversed the judgment of the Court of Appeal and confirmed the following important rules related to the enforcement of The Electronic Commerce Law :</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1) The validity and the admissibility of the electronic transaction as evidence before the Court.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In principle, in order for electronic evidence to be admissible before the court, it must:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">First take the form of a data message which, according to Article 1(4) of the Electronic Commerce Law is any type of information that was sent, received, displayed or stored by any means of electronic communications; and</li>\r\n 	<li dir=\"LTR\">Secondly, comply with the requirements of Article 26 of the Electronic Commerce Law, which states the following:</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"In assessing the evidential weight of information or document in the form of a data message, regard shall be had to the following:</em></p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the data message was generated, stored or communicated.</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the integrity of the Information or document contained in the data message was maintained.\\</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the originator of the data message was identified.</li>\r\n 	<li dir=\"LTR\">Any other relevant process or circumstances.\"</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Article 26 of the Electronic Commerce Law requires certainty of the origin of the data message and the identity of its receiver to ensure that the data message was not manipulated by the parties or was not a counterfeit. The court in some cases can appoint specialized experts to verify the accuracy of the data messages. As such, if such requirements are applied, then all electronic transactions made in the form of data message are equal to the written and signed documents, with regards to legal effect and admissibility in the court as reliable evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further, Article 20(1) of the Electronic Commerce Law explicitly states that any information in the form of a data message is legally admissible before a court, the legal effect of which cannot be denied.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Based on the above principles, the Court of Cassation held that all the information that was in the corresponding emails, the receipts and the bank letters are indeed data messages in terms of Article 1(4) and Article 26 of the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Therefore, the Court of Cassation ruled that the documents submitted by the Claimant were legally effective and admissible before Court.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2) Electronic transactions such as emails are a reliable means to constitute a valid offer and acceptance for the formation of an agreement.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation held that, as the corresponding emails between the parties showed without a doubt that the parties intended to enter into an agreement, the judge could recognize the offer and acceptance from the electronic correspondence without the need of written documents. The fact that parties had not physically signed an agreement was not imperative. The Court supported its opinion by Article 4(1) of the Electronic Commerce Law which states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"An offer or acceptance of an offer may be expressed, in whole or in part, by means of electronic communications.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation ruled that electronic transactions have become essential as a means of conducting business or entering an agreement. The use of a paperless mechanism has become the most favourable means of communication between parties for expressing their intention to enter an agreement; therefore, it has become essential to regulate electronic transactions by issuing the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">This judgment issued by the Court of Cassation constitutes a reform of the methods of submitting proof before courts. The Court of Cassation gives evidential weight to electronic transactions which is equal to written documents in admissibility and reliability before the Qatari courts. In addition, the content of the electronic transactions can itself provide evidence of formation of binding agreements between parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-7988 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/55.png\" alt=\"\" width=\"3125\" height=\"1011\" /></p>'),
(258351, 25099, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-7986 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/74.png\" alt=\"\" width=\"1159\" height=\"389\" /></strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Admissibility and Reliability of Electronic Evidence before Qatari courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Do the Qatari courts recognize a contractual relationship that results from an electronic transaction? Do the courts regard electronic evidence, such as emails and electronic receipts as admissible and reliable?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Prior to the recent judgment of the Court of Cassation, the answer to the above questions would be negative. In fact, the Qatari courts had previously dismissed a few cases by denying the admissibility of electronic evidence following a challenge to its validity by the other party. In those cases, the courts held that there was no evidence reflecting the existence of the contractual relationship between the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, in reliance on Law No. 16 of 2010 Promulgation of the Electronic Commerce and Transactions Law (\"The Electronic Commerce Law\"), the Court of Cassation has introduced a new principle which is considered to be a turning point for the admissibility and reliability of electronic evidence in litigation cases in Qatar.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background to the Case</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant had supplied and installed some medical equipment for the Defendant. The Claimant requested the Defendant to pay the outstanding amount for such service. However, the Defendant failed to pay any of the outstanding amounts. The Claimant sent email reminders to the Defendant requesting the Defendant to respect their agreement and pay the outstanding amounts, but the Defendant failed to respond and failed to pay the outstanding amounts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Case at First Instance:</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2012, the Claimant filed a civil case against the Defendant claiming the outstanding amount in addition to compensation as result of the non-payment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Defendant argued that the case must be dismissed, alleging that there was no existing contractual relationship with the Claimant. In addition, the Defendant challenged the validity of the photocopies of the supporting documents submitted by the Claimant to substantiate the case.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance appointed an expert to review the case. He reported that there was correspondence which proved the existence of the contractual relationship between the parties, in addition to bank statements evidencing the partial payment of the outstanding amount made by the Defendant.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The First Instance Court dismissed the case based on the following grounds:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The absence of evidence proving the existence of the contractual relationship between the Claimant and Defendant.</li>\r\n 	<li dir=\"LTR\">The Claimant’s inability to provide any original documents, all the submitted documentary evidence being photocopies - accepting the Defendant’s challenge to the validity of the same.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Ruling of the Court of Appeal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant appealed the decision of the Court of First Instance before the Court of Appeal. The Court of Appeal upheld the finding of the Court of First Instance and dismissed the appeal in 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Judgment of the Court of Cassation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant challenged the decision of the Court of Appeal before the Court of Cassation. The Claimant relied on the ground that the Court of First Instance erred in its reasoning and application of the law on the facts of the case. The Claimant submitted that the Court of Appeal dismissed the case in contradiction of the following documents:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The Claimant submitted documentary evidence such as photocopies of emails to prove the contractual relationship between the parties.</li>\r\n 	<li dir=\"LTR\">In addition, the \"copy\" document submitted by the Claimant was only copy of the bank statement to prove that the Defendant had already made partial payment for the outstanding amount due to the Claimant.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation accepted the Claimant’s argument and reversed the judgment of the Court of Appeal and confirmed the following important rules related to the enforcement of The Electronic Commerce Law :</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1) The validity and the admissibility of the electronic transaction as evidence before the Court.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In principle, in order for electronic evidence to be admissible before the court, it must:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">First take the form of a data message which, according to Article 1(4) of the Electronic Commerce Law is any type of information that was sent, received, displayed or stored by any means of electronic communications; and</li>\r\n 	<li dir=\"LTR\">Secondly, comply with the requirements of Article 26 of the Electronic Commerce Law, which states the following:</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"In assessing the evidential weight of information or document in the form of a data message, regard shall be had to the following:</em></p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the data message was generated, stored or communicated.</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the integrity of the Information or document contained in the data message was maintained.\\</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the originator of the data message was identified.</li>\r\n 	<li dir=\"LTR\">Any other relevant process or circumstances.\"</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Article 26 of the Electronic Commerce Law requires certainty of the origin of the data message and the identity of its receiver to ensure that the data message was not manipulated by the parties or was not a counterfeit. The court in some cases can appoint specialized experts to verify the accuracy of the data messages. As such, if such requirements are applied, then all electronic transactions made in the form of data message are equal to the written and signed documents, with regards to legal effect and admissibility in the court as reliable evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further, Article 20(1) of the Electronic Commerce Law explicitly states that any information in the form of a data message is legally admissible before a court, the legal effect of which cannot be denied.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Based on the above principles, the Court of Cassation held that all the information that was in the corresponding emails, the receipts and the bank letters are indeed data messages in terms of Article 1(4) and Article 26 of the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Therefore, the Court of Cassation ruled that the documents submitted by the Claimant were legally effective and admissible before Court.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2) Electronic transactions such as emails are a reliable means to constitute a valid offer and acceptance for the formation of an agreement.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation held that, as the corresponding emails between the parties showed without a doubt that the parties intended to enter into an agreement, the judge could recognize the offer and acceptance from the electronic correspondence without the need of written documents. The fact that parties had not physically signed an agreement was not imperative. The Court supported its opinion by Article 4(1) of the Electronic Commerce Law which states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"An offer or acceptance of an offer may be expressed, in whole or in part, by means of electronic communications.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation ruled that electronic transactions have become essential as a means of conducting business or entering an agreement. The use of a paperless mechanism has become the most favourable means of communication between parties for expressing their intention to enter an agreement; therefore, it has become essential to regulate electronic transactions by issuing the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">This judgment issued by the Court of Cassation constitutes a reform of the methods of submitting proof before courts. The Court of Cassation gives evidential weight to electronic transactions which is equal to written documents in admissibility and reliability before the Qatari courts. In addition, the content of the electronic transactions can itself provide evidence of formation of binding agreements between parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-7988 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/55.png\" alt=\"\" width=\"3125\" height=\"1011\" /></p>'),
(258352, 25099, 'MetaLink', 'content'),
(258353, 25099, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=7933&amp;action=edit'),
(258354, 25099, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\" wp-image-7986 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/74.png\" alt=\"\" width=\"1159\" height=\"389\" /></strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Admissibility and Reliability of Electronic Evidence before Qatari courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Do the Qatari courts recognize a contractual relationship that results from an electronic transaction? Do the courts regard electronic evidence, such as emails and electronic receipts as admissible and reliable?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Prior to the recent judgment of the Court of Cassation, the answer to the above questions would be negative. In fact, the Qatari courts had previously dismissed a few cases by denying the admissibility of electronic evidence following a challenge to its validity by the other party. In those cases, the courts held that there was no evidence reflecting the existence of the contractual relationship between the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, in reliance on Law No. 16 of 2010 Promulgation of the Electronic Commerce and Transactions Law (\"The Electronic Commerce Law\"), the Court of Cassation has introduced a new principle which is considered to be a turning point for the admissibility and reliability of electronic evidence in litigation cases in Qatar.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background to the Case</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant had supplied and installed some medical equipment for the Defendant. The Claimant requested the Defendant to pay the outstanding amount for such service. However, the Defendant failed to pay any of the outstanding amounts. The Claimant sent email reminders to the Defendant requesting the Defendant to respect their agreement and pay the outstanding amounts, but the Defendant failed to respond and failed to pay the outstanding amounts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Case at First Instance:</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2012, the Claimant filed a civil case against the Defendant claiming the outstanding amount in addition to compensation as result of the non-payment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Defendant argued that the case must be dismissed, alleging that there was no existing contractual relationship with the Claimant. In addition, the Defendant challenged the validity of the photocopies of the supporting documents submitted by the Claimant to substantiate the case.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance appointed an expert to review the case. He reported that there was correspondence which proved the existence of the contractual relationship between the parties, in addition to bank statements evidencing the partial payment of the outstanding amount made by the Defendant.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The First Instance Court dismissed the case based on the following grounds:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The absence of evidence proving the existence of the contractual relationship between the Claimant and Defendant.</li>\r\n 	<li dir=\"LTR\">The Claimant’s inability to provide any original documents, all the submitted documentary evidence being photocopies - accepting the Defendant’s challenge to the validity of the same.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Ruling of the Court of Appeal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant appealed the decision of the Court of First Instance before the Court of Appeal. The Court of Appeal upheld the finding of the Court of First Instance and dismissed the appeal in 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Judgment of the Court of Cassation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant challenged the decision of the Court of Appeal before the Court of Cassation. The Claimant relied on the ground that the Court of First Instance erred in its reasoning and application of the law on the facts of the case. The Claimant submitted that the Court of Appeal dismissed the case in contradiction of the following documents:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The Claimant submitted documentary evidence such as photocopies of emails to prove the contractual relationship between the parties.</li>\r\n 	<li dir=\"LTR\">In addition, the \"copy\" document submitted by the Claimant was only copy of the bank statement to prove that the Defendant had already made partial payment for the outstanding amount due to the Claimant.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation accepted the Claimant’s argument and reversed the judgment of the Court of Appeal and confirmed the following important rules related to the enforcement of The Electronic Commerce Law :</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1) The validity and the admissibility of the electronic transaction as evidence before the Court.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In principle, in order for electronic evidence to be admissible before the court, it must:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">First take the form of a data message which, according to Article 1(4) of the Electronic Commerce Law is any type of information that was sent, received, displayed or stored by any means of electronic communications; and</li>\r\n 	<li dir=\"LTR\">Secondly, comply with the requirements of Article 26 of the Electronic Commerce Law, which states the following:</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"In assessing the evidential weight of information or document in the form of a data message, regard shall be had to the following:</em></p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the data message was generated, stored or communicated.</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the integrity of the Information or document contained in the data message was maintained.\\</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the originator of the data message was identified.</li>\r\n 	<li dir=\"LTR\">Any other relevant process or circumstances.\"</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Article 26 of the Electronic Commerce Law requires certainty of the origin of the data message and the identity of its receiver to ensure that the data message was not manipulated by the parties or was not a counterfeit. The court in some cases can appoint specialized experts to verify the accuracy of the data messages. As such, if such requirements are applied, then all electronic transactions made in the form of data message are equal to the written and signed documents, with regards to legal effect and admissibility in the court as reliable evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further, Article 20(1) of the Electronic Commerce Law explicitly states that any information in the form of a data message is legally admissible before a court, the legal effect of which cannot be denied.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Based on the above principles, the Court of Cassation held that all the information that was in the corresponding emails, the receipts and the bank letters are indeed data messages in terms of Article 1(4) and Article 26 of the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Therefore, the Court of Cassation ruled that the documents submitted by the Claimant were legally effective and admissible before Court.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2) Electronic transactions such as emails are a reliable means to constitute a valid offer and acceptance for the formation of an agreement.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation held that, as the corresponding emails between the parties showed without a doubt that the parties intended to enter into an agreement, the judge could recognize the offer and acceptance from the electronic correspondence without the need of written documents. The fact that parties had not physically signed an agreement was not imperative. The Court supported its opinion by Article 4(1) of the Electronic Commerce Law which states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"An offer or acceptance of an offer may be expressed, in whole or in part, by means of electronic communications.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation ruled that electronic transactions have become essential as a means of conducting business or entering an agreement. The use of a paperless mechanism has become the most favourable means of communication between parties for expressing their intention to enter an agreement; therefore, it has become essential to regulate electronic transactions by issuing the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">This judgment issued by the Court of Cassation constitutes a reform of the methods of submitting proof before courts. The Court of Cassation gives evidential weight to electronic transactions which is equal to written documents in admissibility and reliability before the Qatari courts. In addition, the content of the electronic transactions can itself provide evidence of formation of binding agreements between parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-7988 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/55.png\" alt=\"\" width=\"3125\" height=\"1011\" /></p>|<p dir=\"LTR\" align=\"LEFT\"><strong><img class=\"wp-image-7986 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/74.png\" alt=\"\" width=\"1159\" height=\"389\" /></strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Admissibility and Reliability of Electronic Evidence before Qatari courts</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Do the Qatari courts recognize a contractual relationship that results from an electronic transaction? Do the courts regard electronic evidence, such as emails and electronic receipts as admissible and reliable?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Prior to the recent judgment of the Court of Cassation, the answer to the above questions would be negative. In fact, the Qatari courts had previously dismissed a few cases by denying the admissibility of electronic evidence following a challenge to its validity by the other party. In those cases, the courts held that there was no evidence reflecting the existence of the contractual relationship between the parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">However, in reliance on Law No. 16 of 2010 Promulgation of the Electronic Commerce and Transactions Law (\"The Electronic Commerce Law\"), the Court of Cassation has introduced a new principle which is considered to be a turning point for the admissibility and reliability of electronic evidence in litigation cases in Qatar.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background to the Case</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant had supplied and installed some medical equipment for the Defendant. The Claimant requested the Defendant to pay the outstanding amount for such service. However, the Defendant failed to pay any of the outstanding amounts. The Claimant sent email reminders to the Defendant requesting the Defendant to respect their agreement and pay the outstanding amounts, but the Defendant failed to respond and failed to pay the outstanding amounts.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>The Case at First Instance:</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In 2012, the Claimant filed a civil case against the Defendant claiming the outstanding amount in addition to compensation as result of the non-payment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Defendant argued that the case must be dismissed, alleging that there was no existing contractual relationship with the Claimant. In addition, the Defendant challenged the validity of the photocopies of the supporting documents submitted by the Claimant to substantiate the case.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of First Instance appointed an expert to review the case. He reported that there was correspondence which proved the existence of the contractual relationship between the parties, in addition to bank statements evidencing the partial payment of the outstanding amount made by the Defendant.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The First Instance Court dismissed the case based on the following grounds:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The absence of evidence proving the existence of the contractual relationship between the Claimant and Defendant.</li>\r\n 	<li dir=\"LTR\">The Claimant’s inability to provide any original documents, all the submitted documentary evidence being photocopies - accepting the Defendant’s challenge to the validity of the same.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Ruling of the Court of Appeal</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant appealed the decision of the Court of First Instance before the Court of Appeal. The Court of Appeal upheld the finding of the Court of First Instance and dismissed the appeal in 2016.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Judgment of the Court of Cassation</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Claimant challenged the decision of the Court of Appeal before the Court of Cassation. The Claimant relied on the ground that the Court of First Instance erred in its reasoning and application of the law on the facts of the case. The Claimant submitted that the Court of Appeal dismissed the case in contradiction of the following documents:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">The Claimant submitted documentary evidence such as photocopies of emails to prove the contractual relationship between the parties.</li>\r\n 	<li dir=\"LTR\">In addition, the \"copy\" document submitted by the Claimant was only copy of the bank statement to prove that the Defendant had already made partial payment for the outstanding amount due to the Claimant.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation accepted the Claimant’s argument and reversed the judgment of the Court of Appeal and confirmed the following important rules related to the enforcement of The Electronic Commerce Law :</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1) The validity and the admissibility of the electronic transaction as evidence before the Court.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In principle, in order for electronic evidence to be admissible before the court, it must:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">First take the form of a data message which, according to Article 1(4) of the Electronic Commerce Law is any type of information that was sent, received, displayed or stored by any means of electronic communications; and</li>\r\n 	<li dir=\"LTR\">Secondly, comply with the requirements of Article 26 of the Electronic Commerce Law, which states the following:</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"In assessing the evidential weight of information or document in the form of a data message, regard shall be had to the following:</em></p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the data message was generated, stored or communicated.</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the integrity of the Information or document contained in the data message was maintained.\\</li>\r\n 	<li dir=\"LTR\">The processes and circumstances under which the originator of the data message was identified.</li>\r\n 	<li dir=\"LTR\">Any other relevant process or circumstances.\"</li>\r\n</ol>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Article 26 of the Electronic Commerce Law requires certainty of the origin of the data message and the identity of its receiver to ensure that the data message was not manipulated by the parties or was not a counterfeit. The court in some cases can appoint specialized experts to verify the accuracy of the data messages. As such, if such requirements are applied, then all electronic transactions made in the form of data message are equal to the written and signed documents, with regards to legal effect and admissibility in the court as reliable evidence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Further, Article 20(1) of the Electronic Commerce Law explicitly states that any information in the form of a data message is legally admissible before a court, the legal effect of which cannot be denied.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Based on the above principles, the Court of Cassation held that all the information that was in the corresponding emails, the receipts and the bank letters are indeed data messages in terms of Article 1(4) and Article 26 of the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Therefore, the Court of Cassation ruled that the documents submitted by the Claimant were legally effective and admissible before Court.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2) Electronic transactions such as emails are a reliable means to constitute a valid offer and acceptance for the formation of an agreement.</strong></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation held that, as the corresponding emails between the parties showed without a doubt that the parties intended to enter into an agreement, the judge could recognize the offer and acceptance from the electronic correspondence without the need of written documents. The fact that parties had not physically signed an agreement was not imperative. The Court supported its opinion by Article 4(1) of the Electronic Commerce Law which states:</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>\"An offer or acceptance of an offer may be expressed, in whole or in part, by means of electronic communications.\"</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The Court of Cassation ruled that electronic transactions have become essential as a means of conducting business or entering an agreement. The use of a paperless mechanism has become the most favourable means of communication between parties for expressing their intention to enter an agreement; therefore, it has become essential to regulate electronic transactions by issuing the Electronic Commerce Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">This judgment issued by the Court of Cassation constitutes a reform of the methods of submitting proof before courts. The Court of Cassation gives evidential weight to electronic transactions which is equal to written documents in admissibility and reliability before the Qatari courts. In addition, the content of the electronic transactions can itself provide evidence of formation of binding agreements between parties.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><img class=\"size-full wp-image-7988 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/55.png\" alt=\"\" width=\"3125\" height=\"1011\" /></p>'),
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(258389, 25102, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8001\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/16.jpg\" alt=\"\" width=\"6449\" height=\"2173\" />The United Arab Emirates (UAE) has long been described as a business-friendly country in the mainstream media and in widely followed surveys of competitiveness. The last couple of months have seen a wave of official measures and initiatives that aim to make Dubai and Abu Dhabi more cost effective (and easier) places in which to live and to run businesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Even more open for business</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 20 May 2018, the Cabinet of the UAE announced two major changes, both of which were highlighted in tweets by HH Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and the Prime Minister of the UAE:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1. Long Term Residency Visas</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under a new visa regime, 10-year residency visas will be available for ‘specialists in medical, scientific, research and technical fields, as well as for all scientists and innovators’. The new visa regime will also include five-year residency visas for students who are studying in the UAE and up to 10 years for ‘exceptional students’.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2. 100% Foreign Business Ownership</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In a strategic move to boost the economy and attract global investments, it was announced that the UAE will allow foreign investors in specific sectors to wholly own their businesses by the end of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Currently, the only way that foreigners could own up to 100% of a business was through one of the various Free Zones in the UAE; otherwise, the ceiling for foreign ownership in mainland UAE was 51%.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst it has not yet been decided as to which sectors will benefit from the announcement, we believe that the decision will be linked to factors such as job creation and significant investments relating to advanced technology and artificial intelligence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From these breakthrough decisions, it is clear to see that the UAE governments are working hard to maintain their title of global leader and the \"business hub\" for foreign investment. It is well documented that the UAE never does things by half and therefore not surprisingly, the exciting announcements did not stop there…</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>More Action to Reduce Business Costs</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Waiver of Corporate Fines</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 29 May 2018, Dubai’s Department of Economic Development (\"DED\") drew attention to Decree No. 20 of 2018, which exempts companies that operate in the Emirate from paying all fines imposed on them, and which facilitates the renewal of licences. HE Sami Al Qamzi, the Director General of Dubai’s DED, noted that ‘[the Decree] will add to the financial benefits of the owners of expired business licenses, restore legal records and licenses, and help the business community in Dubai enhance their competitiveness.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subsequent press reports from 9 June 2018 indicated that the waiver of fines applies to fines that have been issued before 14 April 2018. Businesses that have received fines since then can pay the amounts owing in instalments by arrangement with the DED. The press reports also noted that businesses have until the end of 2018 to renew their licences to operate in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Abu Dhabi’s DED announced similar exemptions ‘for establishments whose licences have expired for more than 24 months from paying the delayed and accumulated fees’. HE Mohammed Munif Al Mansoori, the Chief Executive of Abu Dhabi Business Centre, emphasised that the exemptions apply to all establishments regardless of their size or type. The exemptions are valid in all three of the main regions of the Emirate - Abu Dhabi, Al Dhafra and Al Ain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Going the Extra Mile</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>3 Year AED 50bn Stimulus Package</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Executive Committee of the Abu Dhabi Executive Council discussed a three-year AED50 billion (US$13,624 million) economic stimulus initiative.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sheikh Mohammed bin Zayed announced the plans for the project, which aims to support Abu Dhabi’s economic development by introducing ten key initiatives; some of which are detailed below:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Abu Dhabi Office Space Exemption: All new business enterprises that register in the Emirate of Abu Dhabi will be exempt from the requirement of having an office or workspace in the Emirate for two years.</li>\r\n 	<li dir=\"LTR\">Boosting Growth and Competitiveness: There will be a variety of new public-private partnerships in the Emirate of Abu Dhabi: ‘The initiatives marked for 3Q18 also include encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally, in addition to the issuance of dual licenses for companies in Abu Dhabi Free Zones to enable them to work outside the free zones and to participate in government tenders’.</li>\r\n 	<li dir=\"LTR\">Instant Licences: ‘During the last quarter of 2018, the Executive Committee will roll out its plan for the implementation of instant licensing systems in most commercial license types and all services provided by the Government, in addition to the review of building regulations for the infrastructure, residential properties, commercial and industrial sectors, as well as the developmental requirements and community facilities of other residential areas in Abu Dhabi, Al Ain and Al Dhafra’.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">As expected, these initiatives have created a huge media buzz in the country, with all sorts of opinions and questions being asked about what it all means for the future. While this largely remains to be seen, what really matters is that the governments are now acting decisively to address the biggest problem for most establishments in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is at a time that the high costs of doing business in Dubai and Abu Dhabi have been boosted by the introduction of Value Added Tax (VAT) from the beginning of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hype and Hard Numbers: the UAE was already a competitive country</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">These announcements are remarkable for two reasons. One is that so many of them have been made in a short period of time by the governments of the UAE, namely in Abu Dhabi and Dubai. The other is that conventional wisdom already sees the UAE as having a (very) competitive business environment in both a regional and a global context. A lot of positive publicity has, for instance, been generated by Expo 2020, which will take place in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The hype is supported by hard numbers. In May 2018, the Lausanne-based Institute for International Management Development (IMD - a leading business school) published its 2018 World Competitiveness Ranking. The UAE is currently in seventh place overall (between Denmark and Norway), having been in 10th place in 2017. The UAE is ranked second of the 63 countries assessed in terms of business efficiency (after Hong Kong), third in terms of economic performance (after the United States and mainland China), and fourth for government efficiency (after Hong Kong, Switzerland and Singapore). The UAE is also the only GCC country whose ranking in terms of the Global Competitiveness Index (GCI) calculated by the World Economic Forum (WEF) has clearly improved over the last five years. In 2012-13, the UAE was ranked at 24/144. In 2017-18, the country’s position had advanced to 17/137</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Addressing the main problem, and ensuring a legacy beyond Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A clue as to why the UAE’s governments are taking these steps now comes from that part of the WEF’s research, which deals with the most problematic factors for doing business, in the opinion of the various companies that were surveyed. In most of the Gulf Cooperation Council (GCC) countries, the key challenges are restrictive labour regulations and lack of access to finance. Lack of finance was the most serious problem in the UAE. However, inflation – a minor challenge in the other GCC countries - came in as a close second.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The impact of inflation depends on two factors. One is the rate of change of prices in the basket of goods and services that is being considered. The other is the base from which prices are rising. In the case of the UAE, that base is already high by global standards. In the Cost of Living survey compiled by consultancy Mercer in mid 2017, Dubai and Abu Dhabi were, respectively, the 19th and 22nd most expensive cities for expatriates. The survey covered 209 cities. The UAE’s two main cities are, for expatriates, about as costly as San Francisco (21st) and more expensive than London (29th).</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To watch</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">While it is fair to say that the particulars of the announcements are not yet known; what we can rely on is the fact that the UAE has an excellent track record of following through in delivering their promises, meaning that investors and talented individuals alike should expect positive news in the near future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We believe that the key measure of success of the initiatives will be linked to the number of new enterprises that are incorporated in Dubai and Abu Dhabi in the future. With the array of incentives such as long term visas and reductions in set-up fees, it is hard to see why people would not jump at the chance of doing business in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For now, observers in the rest of the world will focus on the UAE like never before when Expo 2020 comes to Dubai. The latest announcements should have a positive impact on perceptions and the realities of the UAE’s economy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Over the long-term, the governments will do whatever it takes to maintain the competitiveness of Dubai and Abu Dhabi in a regional, and indeed global, context. The UAE’s economy should continue to flourish and diversify long after Expo 2020.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate Structuring team regularly advises on new changes taking place. For further information please contact Samer Qudah, s.qudah@tamimi.com.</em>'),
(258390, 25102, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8001\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/16.jpg\" alt=\"\" width=\"6449\" height=\"2173\" />The United Arab Emirates (UAE) has long been described as a business-friendly country in the mainstream media and in widely followed surveys of competitiveness. The last couple of months have seen a wave of official measures and initiatives that aim to make Dubai and Abu Dhabi more cost effective (and easier) places in which to live and to run businesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Even more open for business</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 20 May 2018, the Cabinet of the UAE announced two major changes, both of which were highlighted in tweets by HH Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and the Prime Minister of the UAE:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1. Long Term Residency Visas</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under a new visa regime, 10-year residency visas will be available for ‘specialists in medical, scientific, research and technical fields, as well as for all scientists and innovators’. The new visa regime will also include five-year residency visas for students who are studying in the UAE and up to 10 years for ‘exceptional students’.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2. 100% Foreign Business Ownership</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In a strategic move to boost the economy and attract global investments, it was announced that the UAE will allow foreign investors in specific sectors to wholly own their businesses by the end of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Currently, the only way that foreigners could own up to 100% of a business was through one of the various Free Zones in the UAE; otherwise, the ceiling for foreign ownership in mainland UAE was 51%.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst it has not yet been decided as to which sectors will benefit from the announcement, we believe that the decision will be linked to factors such as job creation and significant investments relating to advanced technology and artificial intelligence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From these breakthrough decisions, it is clear to see that the UAE governments are working hard to maintain their title of global leader and the \"business hub\" for foreign investment. It is well documented that the UAE never does things by half and therefore not surprisingly, the exciting announcements did not stop there…</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>More Action to Reduce Business Costs</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Waiver of Corporate Fines</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 29 May 2018, Dubai’s Department of Economic Development (\"DED\") drew attention to Decree No. 20 of 2018, which exempts companies that operate in the Emirate from paying all fines imposed on them, and which facilitates the renewal of licences. HE Sami Al Qamzi, the Director General of Dubai’s DED, noted that ‘[the Decree] will add to the financial benefits of the owners of expired business licenses, restore legal records and licenses, and help the business community in Dubai enhance their competitiveness.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subsequent press reports from 9 June 2018 indicated that the waiver of fines applies to fines that have been issued before 14 April 2018. Businesses that have received fines since then can pay the amounts owing in instalments by arrangement with the DED. The press reports also noted that businesses have until the end of 2018 to renew their licences to operate in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Abu Dhabi’s DED announced similar exemptions ‘for establishments whose licences have expired for more than 24 months from paying the delayed and accumulated fees’. HE Mohammed Munif Al Mansoori, the Chief Executive of Abu Dhabi Business Centre, emphasised that the exemptions apply to all establishments regardless of their size or type. The exemptions are valid in all three of the main regions of the Emirate - Abu Dhabi, Al Dhafra and Al Ain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Going the Extra Mile</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>3 Year AED 50bn Stimulus Package</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Executive Committee of the Abu Dhabi Executive Council discussed a three-year AED50 billion (US$13,624 million) economic stimulus initiative.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sheikh Mohammed bin Zayed announced the plans for the project, which aims to support Abu Dhabi’s economic development by introducing ten key initiatives; some of which are detailed below:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Abu Dhabi Office Space Exemption: All new business enterprises that register in the Emirate of Abu Dhabi will be exempt from the requirement of having an office or workspace in the Emirate for two years.</li>\r\n 	<li dir=\"LTR\">Boosting Growth and Competitiveness: There will be a variety of new public-private partnerships in the Emirate of Abu Dhabi: ‘The initiatives marked for 3Q18 also include encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally, in addition to the issuance of dual licenses for companies in Abu Dhabi Free Zones to enable them to work outside the free zones and to participate in government tenders’.</li>\r\n 	<li dir=\"LTR\">Instant Licences: ‘During the last quarter of 2018, the Executive Committee will roll out its plan for the implementation of instant licensing systems in most commercial license types and all services provided by the Government, in addition to the review of building regulations for the infrastructure, residential properties, commercial and industrial sectors, as well as the developmental requirements and community facilities of other residential areas in Abu Dhabi, Al Ain and Al Dhafra’.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">As expected, these initiatives have created a huge media buzz in the country, with all sorts of opinions and questions being asked about what it all means for the future. While this largely remains to be seen, what really matters is that the governments are now acting decisively to address the biggest problem for most establishments in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is at a time that the high costs of doing business in Dubai and Abu Dhabi have been boosted by the introduction of Value Added Tax (VAT) from the beginning of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hype and Hard Numbers: the UAE was already a competitive country</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">These announcements are remarkable for two reasons. One is that so many of them have been made in a short period of time by the governments of the UAE, namely in Abu Dhabi and Dubai. The other is that conventional wisdom already sees the UAE as having a (very) competitive business environment in both a regional and a global context. A lot of positive publicity has, for instance, been generated by Expo 2020, which will take place in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The hype is supported by hard numbers. In May 2018, the Lausanne-based Institute for International Management Development (IMD - a leading business school) published its 2018 World Competitiveness Ranking. The UAE is currently in seventh place overall (between Denmark and Norway), having been in 10th place in 2017. The UAE is ranked second of the 63 countries assessed in terms of business efficiency (after Hong Kong), third in terms of economic performance (after the United States and mainland China), and fourth for government efficiency (after Hong Kong, Switzerland and Singapore). The UAE is also the only GCC country whose ranking in terms of the Global Competitiveness Index (GCI) calculated by the World Economic Forum (WEF) has clearly improved over the last five years. In 2012-13, the UAE was ranked at 24/144. In 2017-18, the country’s position had advanced to 17/137</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Addressing the main problem, and ensuring a legacy beyond Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A clue as to why the UAE’s governments are taking these steps now comes from that part of the WEF’s research, which deals with the most problematic factors for doing business, in the opinion of the various companies that were surveyed. In most of the Gulf Cooperation Council (GCC) countries, the key challenges are restrictive labour regulations and lack of access to finance. Lack of finance was the most serious problem in the UAE. However, inflation – a minor challenge in the other GCC countries - came in as a close second.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The impact of inflation depends on two factors. One is the rate of change of prices in the basket of goods and services that is being considered. The other is the base from which prices are rising. In the case of the UAE, that base is already high by global standards. In the Cost of Living survey compiled by consultancy Mercer in mid 2017, Dubai and Abu Dhabi were, respectively, the 19th and 22nd most expensive cities for expatriates. The survey covered 209 cities. The UAE’s two main cities are, for expatriates, about as costly as San Francisco (21st) and more expensive than London (29th).</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To watch</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">While it is fair to say that the particulars of the announcements are not yet known; what we can rely on is the fact that the UAE has an excellent track record of following through in delivering their promises, meaning that investors and talented individuals alike should expect positive news in the near future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We believe that the key measure of success of the initiatives will be linked to the number of new enterprises that are incorporated in Dubai and Abu Dhabi in the future. With the array of incentives such as long term visas and reductions in set-up fees, it is hard to see why people would not jump at the chance of doing business in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For now, observers in the rest of the world will focus on the UAE like never before when Expo 2020 comes to Dubai. The latest announcements should have a positive impact on perceptions and the realities of the UAE’s economy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Over the long-term, the governments will do whatever it takes to maintain the competitiveness of Dubai and Abu Dhabi in a regional, and indeed global, context. The UAE’s economy should continue to flourish and diversify long after Expo 2020.</p>\r\nAl Tamimi &amp; Company’s Corporate Structuring team regularly advises on new changes taking place. For further information please contact Samer Qudah, s.qudah@tamimi.com.'),
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(258393, 25102, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8001\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/16.jpg\" alt=\"\" width=\"6449\" height=\"2173\" />The United Arab Emirates (UAE) has long been described as a business-friendly country in the mainstream media and in widely followed surveys of competitiveness. The last couple of months have seen a wave of official measures and initiatives that aim to make Dubai and Abu Dhabi more cost effective (and easier) places in which to live and to run businesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Even more open for business</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 20 May 2018, the Cabinet of the UAE announced two major changes, both of which were highlighted in tweets by HH Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and the Prime Minister of the UAE:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1. Long Term Residency Visas</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under a new visa regime, 10-year residency visas will be available for ‘specialists in medical, scientific, research and technical fields, as well as for all scientists and innovators’. The new visa regime will also include five-year residency visas for students who are studying in the UAE and up to 10 years for ‘exceptional students’.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2. 100% Foreign Business Ownership</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In a strategic move to boost the economy and attract global investments, it was announced that the UAE will allow foreign investors in specific sectors to wholly own their businesses by the end of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Currently, the only way that foreigners could own up to 100% of a business was through one of the various Free Zones in the UAE; otherwise, the ceiling for foreign ownership in mainland UAE was 51%.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst it has not yet been decided as to which sectors will benefit from the announcement, we believe that the decision will be linked to factors such as job creation and significant investments relating to advanced technology and artificial intelligence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From these breakthrough decisions, it is clear to see that the UAE governments are working hard to maintain their title of global leader and the \"business hub\" for foreign investment. It is well documented that the UAE never does things by half and therefore not surprisingly, the exciting announcements did not stop there…</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>More Action to Reduce Business Costs</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Waiver of Corporate Fines</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 29 May 2018, Dubai’s Department of Economic Development (\"DED\") drew attention to Decree No. 20 of 2018, which exempts companies that operate in the Emirate from paying all fines imposed on them, and which facilitates the renewal of licences. HE Sami Al Qamzi, the Director General of Dubai’s DED, noted that ‘[the Decree] will add to the financial benefits of the owners of expired business licenses, restore legal records and licenses, and help the business community in Dubai enhance their competitiveness.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subsequent press reports from 9 June 2018 indicated that the waiver of fines applies to fines that have been issued before 14 April 2018. Businesses that have received fines since then can pay the amounts owing in instalments by arrangement with the DED. The press reports also noted that businesses have until the end of 2018 to renew their licences to operate in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Abu Dhabi’s DED announced similar exemptions ‘for establishments whose licences have expired for more than 24 months from paying the delayed and accumulated fees’. HE Mohammed Munif Al Mansoori, the Chief Executive of Abu Dhabi Business Centre, emphasised that the exemptions apply to all establishments regardless of their size or type. The exemptions are valid in all three of the main regions of the Emirate - Abu Dhabi, Al Dhafra and Al Ain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Going the Extra Mile</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>3 Year AED 50bn Stimulus Package</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Executive Committee of the Abu Dhabi Executive Council discussed a three-year AED50 billion (US$13,624 million) economic stimulus initiative.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sheikh Mohammed bin Zayed announced the plans for the project, which aims to support Abu Dhabi’s economic development by introducing ten key initiatives; some of which are detailed below:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Abu Dhabi Office Space Exemption: All new business enterprises that register in the Emirate of Abu Dhabi will be exempt from the requirement of having an office or workspace in the Emirate for two years.</li>\r\n 	<li dir=\"LTR\">Boosting Growth and Competitiveness: There will be a variety of new public-private partnerships in the Emirate of Abu Dhabi: ‘The initiatives marked for 3Q18 also include encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally, in addition to the issuance of dual licenses for companies in Abu Dhabi Free Zones to enable them to work outside the free zones and to participate in government tenders’.</li>\r\n 	<li dir=\"LTR\">Instant Licences: ‘During the last quarter of 2018, the Executive Committee will roll out its plan for the implementation of instant licensing systems in most commercial license types and all services provided by the Government, in addition to the review of building regulations for the infrastructure, residential properties, commercial and industrial sectors, as well as the developmental requirements and community facilities of other residential areas in Abu Dhabi, Al Ain and Al Dhafra’.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">As expected, these initiatives have created a huge media buzz in the country, with all sorts of opinions and questions being asked about what it all means for the future. While this largely remains to be seen, what really matters is that the governments are now acting decisively to address the biggest problem for most establishments in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is at a time that the high costs of doing business in Dubai and Abu Dhabi have been boosted by the introduction of Value Added Tax (VAT) from the beginning of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hype and Hard Numbers: the UAE was already a competitive country</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">These announcements are remarkable for two reasons. One is that so many of them have been made in a short period of time by the governments of the UAE, namely in Abu Dhabi and Dubai. The other is that conventional wisdom already sees the UAE as having a (very) competitive business environment in both a regional and a global context. A lot of positive publicity has, for instance, been generated by Expo 2020, which will take place in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The hype is supported by hard numbers. In May 2018, the Lausanne-based Institute for International Management Development (IMD - a leading business school) published its 2018 World Competitiveness Ranking. The UAE is currently in seventh place overall (between Denmark and Norway), having been in 10th place in 2017. The UAE is ranked second of the 63 countries assessed in terms of business efficiency (after Hong Kong), third in terms of economic performance (after the United States and mainland China), and fourth for government efficiency (after Hong Kong, Switzerland and Singapore). The UAE is also the only GCC country whose ranking in terms of the Global Competitiveness Index (GCI) calculated by the World Economic Forum (WEF) has clearly improved over the last five years. In 2012-13, the UAE was ranked at 24/144. In 2017-18, the country’s position had advanced to 17/137</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Addressing the main problem, and ensuring a legacy beyond Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A clue as to why the UAE’s governments are taking these steps now comes from that part of the WEF’s research, which deals with the most problematic factors for doing business, in the opinion of the various companies that were surveyed. In most of the Gulf Cooperation Council (GCC) countries, the key challenges are restrictive labour regulations and lack of access to finance. Lack of finance was the most serious problem in the UAE. However, inflation – a minor challenge in the other GCC countries - came in as a close second.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The impact of inflation depends on two factors. One is the rate of change of prices in the basket of goods and services that is being considered. The other is the base from which prices are rising. In the case of the UAE, that base is already high by global standards. In the Cost of Living survey compiled by consultancy Mercer in mid 2017, Dubai and Abu Dhabi were, respectively, the 19th and 22nd most expensive cities for expatriates. The survey covered 209 cities. The UAE’s two main cities are, for expatriates, about as costly as San Francisco (21st) and more expensive than London (29th).</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To watch</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">While it is fair to say that the particulars of the announcements are not yet known; what we can rely on is the fact that the UAE has an excellent track record of following through in delivering their promises, meaning that investors and talented individuals alike should expect positive news in the near future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We believe that the key measure of success of the initiatives will be linked to the number of new enterprises that are incorporated in Dubai and Abu Dhabi in the future. With the array of incentives such as long term visas and reductions in set-up fees, it is hard to see why people would not jump at the chance of doing business in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For now, observers in the rest of the world will focus on the UAE like never before when Expo 2020 comes to Dubai. The latest announcements should have a positive impact on perceptions and the realities of the UAE’s economy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Over the long-term, the governments will do whatever it takes to maintain the competitiveness of Dubai and Abu Dhabi in a regional, and indeed global, context. The UAE’s economy should continue to flourish and diversify long after Expo 2020.</p>\r\nAl Tamimi &amp; Company’s Corporate Structuring team regularly advises on new changes taking place. For further information please contact Samer Qudah, s.qudah@tamimi.com.|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8001\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/16.jpg\" alt=\"\" width=\"6449\" height=\"2173\" />The United Arab Emirates (UAE) has long been described as a business-friendly country in the mainstream media and in widely followed surveys of competitiveness. The last couple of months have seen a wave of official measures and initiatives that aim to make Dubai and Abu Dhabi more cost effective (and easier) places in which to live and to run businesses.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Even more open for business</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 20 May 2018, the Cabinet of the UAE announced two major changes, both of which were highlighted in tweets by HH Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and the Prime Minister of the UAE:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>1. Long Term Residency Visas</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Under a new visa regime, 10-year residency visas will be available for ‘specialists in medical, scientific, research and technical fields, as well as for all scientists and innovators’. The new visa regime will also include five-year residency visas for students who are studying in the UAE and up to 10 years for ‘exceptional students’.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>2. 100% Foreign Business Ownership</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In a strategic move to boost the economy and attract global investments, it was announced that the UAE will allow foreign investors in specific sectors to wholly own their businesses by the end of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Currently, the only way that foreigners could own up to 100% of a business was through one of the various Free Zones in the UAE; otherwise, the ceiling for foreign ownership in mainland UAE was 51%.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Whilst it has not yet been decided as to which sectors will benefit from the announcement, we believe that the decision will be linked to factors such as job creation and significant investments relating to advanced technology and artificial intelligence.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From these breakthrough decisions, it is clear to see that the UAE governments are working hard to maintain their title of global leader and the \"business hub\" for foreign investment. It is well documented that the UAE never does things by half and therefore not surprisingly, the exciting announcements did not stop there…</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>More Action to Reduce Business Costs</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Waiver of Corporate Fines</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">On 29 May 2018, Dubai’s Department of Economic Development (\"DED\") drew attention to Decree No. 20 of 2018, which exempts companies that operate in the Emirate from paying all fines imposed on them, and which facilitates the renewal of licences. HE Sami Al Qamzi, the Director General of Dubai’s DED, noted that ‘[the Decree] will add to the financial benefits of the owners of expired business licenses, restore legal records and licenses, and help the business community in Dubai enhance their competitiveness.’</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Subsequent press reports from 9 June 2018 indicated that the waiver of fines applies to fines that have been issued before 14 April 2018. Businesses that have received fines since then can pay the amounts owing in instalments by arrangement with the DED. The press reports also noted that businesses have until the end of 2018 to renew their licences to operate in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Abu Dhabi’s DED announced similar exemptions ‘for establishments whose licences have expired for more than 24 months from paying the delayed and accumulated fees’. HE Mohammed Munif Al Mansoori, the Chief Executive of Abu Dhabi Business Centre, emphasised that the exemptions apply to all establishments regardless of their size or type. The exemptions are valid in all three of the main regions of the Emirate - Abu Dhabi, Al Dhafra and Al Ain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Going the Extra Mile</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>3 Year AED 50bn Stimulus Package</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Executive Committee of the Abu Dhabi Executive Council discussed a three-year AED50 billion (US$13,624 million) economic stimulus initiative.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Sheikh Mohammed bin Zayed announced the plans for the project, which aims to support Abu Dhabi’s economic development by introducing ten key initiatives; some of which are detailed below:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Abu Dhabi Office Space Exemption: All new business enterprises that register in the Emirate of Abu Dhabi will be exempt from the requirement of having an office or workspace in the Emirate for two years.</li>\r\n 	<li dir=\"LTR\">Boosting Growth and Competitiveness: There will be a variety of new public-private partnerships in the Emirate of Abu Dhabi: ‘The initiatives marked for 3Q18 also include encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally, in addition to the issuance of dual licenses for companies in Abu Dhabi Free Zones to enable them to work outside the free zones and to participate in government tenders’.</li>\r\n 	<li dir=\"LTR\">Instant Licences: ‘During the last quarter of 2018, the Executive Committee will roll out its plan for the implementation of instant licensing systems in most commercial license types and all services provided by the Government, in addition to the review of building regulations for the infrastructure, residential properties, commercial and industrial sectors, as well as the developmental requirements and community facilities of other residential areas in Abu Dhabi, Al Ain and Al Dhafra’.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">As expected, these initiatives have created a huge media buzz in the country, with all sorts of opinions and questions being asked about what it all means for the future. While this largely remains to be seen, what really matters is that the governments are now acting decisively to address the biggest problem for most establishments in the UAE.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is at a time that the high costs of doing business in Dubai and Abu Dhabi have been boosted by the introduction of Value Added Tax (VAT) from the beginning of 2018.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Hype and Hard Numbers: the UAE was already a competitive country</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">These announcements are remarkable for two reasons. One is that so many of them have been made in a short period of time by the governments of the UAE, namely in Abu Dhabi and Dubai. The other is that conventional wisdom already sees the UAE as having a (very) competitive business environment in both a regional and a global context. A lot of positive publicity has, for instance, been generated by Expo 2020, which will take place in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The hype is supported by hard numbers. In May 2018, the Lausanne-based Institute for International Management Development (IMD - a leading business school) published its 2018 World Competitiveness Ranking. The UAE is currently in seventh place overall (between Denmark and Norway), having been in 10th place in 2017. The UAE is ranked second of the 63 countries assessed in terms of business efficiency (after Hong Kong), third in terms of economic performance (after the United States and mainland China), and fourth for government efficiency (after Hong Kong, Switzerland and Singapore). The UAE is also the only GCC country whose ranking in terms of the Global Competitiveness Index (GCI) calculated by the World Economic Forum (WEF) has clearly improved over the last five years. In 2012-13, the UAE was ranked at 24/144. In 2017-18, the country’s position had advanced to 17/137</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Addressing the main problem, and ensuring a legacy beyond Expo 2020</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">A clue as to why the UAE’s governments are taking these steps now comes from that part of the WEF’s research, which deals with the most problematic factors for doing business, in the opinion of the various companies that were surveyed. In most of the Gulf Cooperation Council (GCC) countries, the key challenges are restrictive labour regulations and lack of access to finance. Lack of finance was the most serious problem in the UAE. However, inflation – a minor challenge in the other GCC countries - came in as a close second.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The impact of inflation depends on two factors. One is the rate of change of prices in the basket of goods and services that is being considered. The other is the base from which prices are rising. In the case of the UAE, that base is already high by global standards. In the Cost of Living survey compiled by consultancy Mercer in mid 2017, Dubai and Abu Dhabi were, respectively, the 19th and 22nd most expensive cities for expatriates. The survey covered 209 cities. The UAE’s two main cities are, for expatriates, about as costly as San Francisco (21st) and more expensive than London (29th).</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>To watch</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">While it is fair to say that the particulars of the announcements are not yet known; what we can rely on is the fact that the UAE has an excellent track record of following through in delivering their promises, meaning that investors and talented individuals alike should expect positive news in the near future.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We believe that the key measure of success of the initiatives will be linked to the number of new enterprises that are incorporated in Dubai and Abu Dhabi in the future. With the array of incentives such as long term visas and reductions in set-up fees, it is hard to see why people would not jump at the chance of doing business in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For now, observers in the rest of the world will focus on the UAE like never before when Expo 2020 comes to Dubai. The latest announcements should have a positive impact on perceptions and the realities of the UAE’s economy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Over the long-term, the governments will do whatever it takes to maintain the competitiveness of Dubai and Abu Dhabi in a regional, and indeed global, context. The UAE’s economy should continue to flourish and diversify long after Expo 2020.</p>\r\n<em>Al Tamimi &amp; Company’s Corporate Structuring team regularly advises on new changes taking place. For further information please contact Samer Qudah, s.qudah@tamimi.com.</em>'),
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(258450, 25107, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8032\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/shutterstock_547395022.jpg\" alt=\"\" width=\"7952\" height=\"3081\" />With Expo 2020 fast approaching, it is important that participating countries and corporates understand the key employment and immigration considerations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">This is particularly so given the emphasis by the Expo 2020 leadership on worker welfare including Health and Safety. Indeed, on 19 April 2018, Dubai Municipality and the Ministry of Human Resources and Emiratization held an Expo driven Health, Safety, Quality, and Environment (HSQE) leadership event to ensure that all stakeholders including contractors, sub-contractors, project managers, regulators, and partners were cognisant of their obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these key employment considerations are addressed below:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What employment framework is in place?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Broadly speaking for the purposes of Expo 2020, employees will fall into three main categories: Expo 2020 staff, employees working on the ongoing construction phase and participating countries and companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The venue for Expo 2020 is Dubai South (formerly Dubai World Central), a 140 km2 area in Jebel Ali near to the new Al Maktoum International airport. In addition to the prevailing UAE Federal employment and immigration laws, the Dubai South Free Zone Regulations outline the applicable employment/immigration regulations that apply to entities licensed within the Dubai South.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purposes of Expo, although Dubai South Free Zone Authority shall have a licensing function, a specially formed Expo LLC shall project manage matters. Expo LLC is preparing the structure to regularise the influx of manpower that will be required prior, during and after Expo in order that it can act as a one-stop shop for such matters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Expo LLC (via each participating country’s assigned Country Manager) will assess the submitted country plans and thereafter will determine a visa quota for each participating country. 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We anticipate that a streamlined process will be put in place to secure visas and Dubai South ID cards are processed promptly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If a participating country or company requires an individual(s) to access the Expo site prior to the completion of the licensing formalities, it must apply to Expo LLC for approval. An example would be a visiting engineer attending the site to carry out a pavilion feasibility study. For such approval to be granted it will be necessary to set out information such as the reason(s) for and duration of the visit. Expo LLC will thereafter assess such an application before approving or declining access.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The license granted to a participating country shall cease 6 months after Expo. If there is a desire to retain a presence in the UAE post Expo, including the presence of personnel in the UAE, separate corporate structuring advice will require to be sought.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">At present, we do not expect the introduction of additional employment legislation in respect of Expo albeit additional guidelines may be issued to supplant the existing suite of policy guidance.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What arrangements are in place for interns and volunteers?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of interns for the event, they are often based in the UAE with a valid residency visa (eg. via a spouse or family member). In such a cases, the steps involved are limited including the provision of a no objection certificate from the legal sponsor and the requirement to obtain a Dubai South ID card.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Past Expo experience demonstrates that volunteers are a major cornerstone of a successful event. The relevant labour laws in the UAE do not specifically provide for volunteering. Despite that, the UAE government has introduced certain volunteering initiatives earlier this year with the aim of increasing volunteer participation. The government has identified 14 specific areas in which volunteering may take place. We expect that this will adequately cater for the requirements of Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Volunteers must register on a designated volunteer platform online. Express provision has been made for Expo 2020 Dubai volunteers being added to the volunteer platform whereby volunteer opportunities are posted and applicants can apply online to participate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We will continue to monitor Expo worker welfare developments with interest and will issue a further article in the likely event that further updates materialise in the coming months.</p>\r\n<em>Al Tamimi &amp; Company’s Employment team regularly advises on regional employment matters and provides key support to our Expo 2020 practice group. For further information, please contact expo2020@tamimi.com.</em>'),
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In such a cases, the steps involved are limited including the provision of a no objection certificate from the legal sponsor and the requirement to obtain a Dubai South ID card.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Past Expo experience demonstrates that volunteers are a major cornerstone of a successful event. The relevant labour laws in the UAE do not specifically provide for volunteering. Despite that, the UAE government has introduced certain volunteering initiatives earlier this year with the aim of increasing volunteer participation. The government has identified 14 specific areas in which volunteering may take place. We expect that this will adequately cater for the requirements of Expo.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Volunteers must register on a designated volunteer platform online. Express provision has been made for Expo 2020 Dubai volunteers being added to the volunteer platform whereby volunteer opportunities are posted and applicants can apply online to participate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We will continue to monitor Expo worker welfare developments with interest and will issue a further article in the likely event that further updates materialise in the coming months.</p>\r\n<em>Al Tamimi &amp; Company’s Employment team regularly advises on regional employment matters and provides key support to our Expo 2020 practice group. 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Indeed, on 19 April 2018, Dubai Municipality and the Ministry of Human Resources and Emiratization held an Expo driven Health, Safety, Quality, and Environment (HSQE) leadership event to ensure that all stakeholders including contractors, sub-contractors, project managers, regulators, and partners were cognisant of their obligations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of these key employment considerations are addressed below:</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What employment framework is in place?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Broadly speaking for the purposes of Expo 2020, employees will fall into three main categories: Expo 2020 staff, employees working on the ongoing construction phase and participating countries and companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The venue for Expo 2020 is Dubai South (formerly Dubai World Central), a 140 km2 area in Jebel Ali near to the new Al Maktoum International airport. In addition to the prevailing UAE Federal employment and immigration laws, the Dubai South Free Zone Regulations outline the applicable employment/immigration regulations that apply to entities licensed within the Dubai South.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">For the purposes of Expo, although Dubai South Free Zone Authority shall have a licensing function, a specially formed Expo LLC shall project manage matters. Expo LLC is preparing the structure to regularise the influx of manpower that will be required prior, during and after Expo in order that it can act as a one-stop shop for such matters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Expo LLC (via each participating country’s assigned Country Manager) will assess the submitted country plans and thereafter will determine a visa quota for each participating country. A similar process will apply for participating companies.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It will only be possible to obtain visas for employees once the participating country/company is appropriately licensed. As noted, ultimately the license is issued by Dubai South but all participant interface will be with Expo LLC.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>What immigration and employment restrictions should be borne in mind?</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Upon completion of the licensing formalities (see above), it will be possible to obtain visas for a period of up to 18 months prior to the commencement of Expo with the latest date of expiry being 6 months after the event finishes. Accordingly, the longest period that a visa may be issued for Expo purposes is 30 months (18 months prior to the event, 6-month duration of Expo and 6 months’ post Expo). We anticipate that a streamlined process will be put in place to secure visas and Dubai South ID cards are processed promptly.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If a participating country or company requires an individual(s) to access the Expo site prior to the completion of the licensing formalities, it must apply to Expo LLC for approval. An example would be a visiting engineer attending the site to carry out a pavilion feasibility study. For such approval to be granted it will be necessary to set out information such as the reason(s) for and duration of the visit. Expo LLC will thereafter assess such an application before approving or declining access.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The license granted to a participating country shall cease 6 months after Expo. 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(258533, 25114, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
(258534, 25114, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
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(258537, 25114, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).|<p dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-7982 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/3.jpg\" alt=\"\" width=\"154\" height=\"837\" />If an employer decides to terminate a construction contract entered into with a main contractor, and to appoint a new main contractor, will the former main contractor be legally entitled to prevent the employer from appointing the new main contractor, pending the evaluation of the site or it is an absolute right of the employer to appoint a new contractor following the termination of the construction contract?</p>\r\n<p dir=\"LTR\" align=\"LEFT\">We explore in this article whether a main contractor can prevent the appointment of a new main contractor based on our recent experience advising and representing a main contractor before the Dubai Urgent Matters Court (\"<strong>DUMC</strong>\").</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Background of dispute</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">An employer entered into a construction contract with a main contractor to construct a number of villas in a prime location in Dubai.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contract was based on FIDIC (1987) with particular conditions. The main contractor almost completed the project, and was ready to initiate the testing and commissioning for the project. According to the last interim payment certificate, the consultant had certified that around 87% of the main contractor’s works had been successfully completed.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Due to the existence of several disputes between the employer and the contractor relating to the latter’s claim for variations, extension of time, prolongation costs, and overdue payments related to work done on site, the employer terminated the contract. Following the termination, the main contractor applied to DUMC to appoint engineering experts to visit the site, evaluate the percentage of work done, record the status of the work done and scope of the material and equipment on site.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The main contractor sought legal representation when the employer tried to evict the main contractor from the site. Following our advice, a notice was served on the employer warning the employer that, among other things, the site status should remain as is until the DUMC appoints an engineering experts’ committee to visit the site and record the work done and material and equipment on site. The notice also made it clear to the employer that no new contactor should enter the site, pending the inspection by the aforesaid engineering experts committee.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employer opted to disregard the notice, and decided to appoint a new main contractor. Consequently, the employer applied to the appropriate authority in Dubai to substitute the main contractor with another one in the records of the authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Al Tamimi &amp; Company, as legal counsel for the main contractor, immediately drafted a request to the DUMC highlighting the following:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">the certification by the project’s consultant confirmed that construction was approximately 87% completed;</li>\r\n 	<li dir=\"LTR\">the employer had purportedly terminated the contract, and alleged that the main contractor had breached its contractual obligations;</li>\r\n 	<li dir=\"LTR\">following the purported termination, the main contractor had applied to the DUMC to appoint an engineering experts’ committee to record the work done on site and the material and equipment on site;</li>\r\n 	<li dir=\"LTR\">the employer had attempted to evict the main contractor from the site, and the employer had accordingly been notified that the site’s status should remain as is and no new main contractor should be appointed until the DUMC appointed engineering experts committee had examined and recorded the works done on site and the material and equipment on site; and</li>\r\n 	<li dir=\"LTR\">the employer had not responded to the notice, and had applied to the relevant authority to change the main contractor with a new one which would allow this new contractor to enter upon and disturb the site.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Having regard to the above, the DUMC were requested to issue an order addressed to the relevant authority rejecting the employer’s request to substitute the main contractor with a new one thereby preventing the new main contractor from interfering with the site.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Dubai Urgent Matters Court’s Decision</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The DUMC issued its decision within 72 hours, and accepted Al Tamimi &amp; Company’s request that the site should be left undisturbed pending the appointment of the engineering experts’ committee in accordance with the main contractor’s case before Dubai Court and addressed an order to the relevant authority to suspend the employer’s request to change the main contractor.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Although employers may have the right to terminate a construction contract entered into with the main contractor, an employer should not engage a new main contractor until the work done on site and the material and equipment on site have been recorded by an expert agreed between the parties or appointed by the UAE Courts.</p>\r\nFor further information please contact <a href=\"https://www.tamimi.com/lawyer/ahmad-ghoneim/\">Ahmad Ghoneim</a> (<a href=\"mailto:a.ghoneim@tamimi.com\">a.ghoneim@tamimi.com</a>).'),
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(258582, 25119, 'PostID', '7957'),
(258583, 25119, 'PostType', 'law_update_articles'),
(258584, 25119, 'PostTitle', 'Catching the wave: New Data Protection Law in Bahrain'),
(258585, 25119, 'PostStatus', 'publish'),
(258586, 25119, 'PostDate', '2018-08-01 07:45:44'),
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(258588, 25119, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=7957&amp;action=edit'),
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(258601, 25120, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\" wp-image-8068 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
(258602, 25120, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
(258603, 25120, 'MetaLink', 'content'),
(258604, 25120, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=7957&amp;action=edit');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(258605, 25120, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\" wp-image-8068 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
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(258643, 25124, 'PostID', '7957'),
(258644, 25124, 'PostTitle', 'Catching the wave: New Data Protection Law in Bahrain'),
(258645, 25124, 'PostStatus', 'publish'),
(258646, 25124, 'PostType', 'law_update_articles'),
(258647, 25124, 'PostDate', '2018-08-01 07:45:44'),
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(258651, 25124, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\"wp-image-8068 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
(258652, 25124, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\" wp-image-8068 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
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(258655, 25124, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\" wp-image-8068 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\"wp-image-8068 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
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(258712, 25129, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" /></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\"></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\"wp-image-8068 alignleft\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"469\" height=\"313\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
(258713, 25129, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignleft size-full wp-image-8044\" src=\"http://www.tamimi.com/wp-content/uploads/2018/07/cvdfd.jpg\" alt=\"\" width=\"6000\" height=\"2401\" />Bahrain’s Law on the Protection of Personal Data was published on 19 July 2018, and will come into effect on 1 August 2019. The Law will require a variety of changes to the way businesses process personal data in Bahrain or about residents of Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law provides a considerable lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Until now, and with one exception (namely, Qatar), none of the Gulf Cooperation Council member states had a modern, nationally applicable data protection law. Legal issues relating to privacy and data protection are typically analysed in terms of general, and ill-fitting, criminal provisions relating to the unauthorized disclosure of secrets, or – in appropriate circumstances - industry-specific obligations relating to healthcare or credit data, or telecommunications sector subscriber data.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law is generally composed of 60 articles divided into three broad sections or ‘titles’. These are:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Title 1: Processing Provisions – Including definitions and general rules for the legality of processing, controls of data processing and transfer, statements as well as the rights of the data holder.</li>\r\n 	<li dir=\"LTR\">Title 2: Data Protection Authority - Including provisions relating to the establishment of the regulator, and its rights and responsibilities.</li>\r\n 	<li dir=\"LTR\">Title 3: Accountability of the data manager (data controller) and data processor – Including provisions relating to accountability to the regulator, investigation procedures, civil and criminal liability, and penalties for violation.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this article, we consider some key areas addressed in the Data Protection Law.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Application</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s Data Protection Law describes the legal protection of personal privacy as among the main constitutional rights of the person, and notes that it should be protected, particularly in the context of the increasing use of electronic/digital means for processing information.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law applies to:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Every individual residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) having a place of business in the Kingdom of Bahrain; and</li>\r\n 	<li dir=\"LTR\">Every individual not residing normally in Bahrain or having a workplace in Bahrain, and every legal person (corporate) not having a place of business in the Kingdom of Bahrain, where such persons are processing data using means available in Bahrain, except where such processing means are solely for the purpose of passing data through Bahrain.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">In this latter scenario, the legal person (corporate) is required to appoint an authorized representative in Bahrain, and notify the Authority of such appointment. This provision would appear to affect, for example, corporate customers of cloud service providers, where the customer is based outside Bahrain, and the services being provided to the customer are being provided from data centres located in Bahrain.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Criminal provisions</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law criminalizes a variety of acts that would, at most, be the subject of administrative penalties in data protection laws elsewhere. Penalties generally comprise up to one year in prison and/or a fine of between BHD1,000 and BHD20,000 (between about USD 2,600 to about USD 53,000) (or a fine only in the case of corporate entities). The following are examples of activities that attract criminal penalties under the Law:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">processing sensitive personal data in violation of the provision specifying requirements for processing sensitive personal data;</li>\r\n 	<li dir=\"LTR\">transferring personal data outside Bahrain contrary to the provisions specifying requirements for transfers to jurisdictions that provide an adequate level of data protection, and associated exceptions;</li>\r\n 	<li dir=\"LTR\">processing personal data without notifying the Authority in accordance with the provision that sets out the obligation to notify the Authority before commencing any data processing activities (except where certain exceptions apply), or failing to update such notification to the Authority;</li>\r\n 	<li dir=\"LTR\">Processing personal data contrary to the provision that requires prior authorization from the Authority before processing personal data in certain circumstances;</li>\r\n 	<li dir=\"LTR\">Providing false or misleading information to the Authority or to a data subject, or withholding relevant information from the Authority, or otherwise hindering the Authority’s work; and</li>\r\n 	<li dir=\"LTR\">Disclosing any data or information accessed due to work, or using the same for own benefit or for the benefit of others unreasonably and in violation of the provisions of this law.</li>\r\n</ul>\r\n<img class=\"wp-image-8068 alignright\" src=\"http://www.tamimi.com/wp-content/uploads/2018/08/56.jpg\" alt=\"\" width=\"511\" height=\"341\" />\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Security considerations</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, the security of processing provisions, and the confidentiality provisions, appear to be fairly standard.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to apply technical and organizational measures capable of protecting personal data against unintentional or unauthorized destruction, accidental loss, unauthorized alteration, disclosure or access, or any other form of processing. The measures adopted need to be appropriate, bearing in mind the nature of the data in question and the risks associated with processing it. The Law also indicates that ‘state-of-the-art’ technological protection measures should be adopted, but this is tempered by reference to the costs arising from use of such technology.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additionally, the Law contemplates the issuance of a regulation specifying requirements that technical and organisational measures must satisfy. It also provides scope for specific requirements to be prescribed in such regulations.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Data controllers are required to maintain documentation that reflects the technical and organizational measures adopted. This documentation must be available for viewing by the parties concerned (presumably, including data subjects), as well as the Authority, any data processors, and the data controller itself.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">With regard to processing by data processors, the Law requires data controllers to engage only data processors who provide sufficient guarantees regarding the application of technical and organisational measures. Importantly, there is an obligation on data controllers to take steps to verify compliance with such measures, and to enter into a written contract with the data processor requiring that the data processor shall only process data in accordance with the instructions of the data controller, and in accordance with the data controller’s requirements with regard to security and confidentiality.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">There does not appear to be any specific obligation to notify the Authority in the event of a data breach incident. It is possible that this level of detail might be addressed in the regulations, or that the Authority is expected to address breaches only in the event that they become aware of them, and the circumstances indicate a breach of the obligation to use suitable technical and organizational security measures.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Data protection supervisor</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Law contemplates a role of ‘Data Protection Supervisor’ (which is not a data protection officer) intended to act as an independent and impartial intermediary between the data controller and the Authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The data protection supervisor will help the data controller fulfil its rights and obligations, and coordinate between the data controller and the Authority. It will also be required to verify the data controller’s processing in compliance with the law, alert the data controller to any apparent non-compliance to enable the issue to be addressed, and alert the Authority where such non-compliance has not been addressed within a specified timeframe. The data protection supervisor will also be required to maintain a register of the data controller’s processing operations that the data controller must notify the Authority, and update the Authority of the same on a monthly basis. (If no data protection supervisor is appointed, then the data controller is required to do this itself.)</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The qualifications and requirements for registration as a data protection supervisor will be officially issued, and data protection supervisors will need to be registered on a register maintained by the Authority. The requirement to appoint a data protection supervisor is optional, although it may be made compulsory for specific categories of data controllers.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of a data protection supervisor has the potential to result in a whole new industry in the Bahrain market. The regulations setting out the requirements for the registration of data protection supervisors may shed greater light on what is anticipated, in terms of who might be able to fulfil such roles. The most natural development may be for the role to be filled by consulting/audit firms with expertise in data protection related issues.</p>\r\n<p dir=\"LTR\" align=\"LEFT\"><strong>Conclusion</strong></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Bahrain’s new Data Protection Law will require a great deal of attention from businesses operating in Bahrain. Data protection has not been a high priority topic for most businesses in Bahrain, with the limited exception of international entities subject to data protection requirements in other jurisdictions in which they operate. While the publication of the new Law will result in some degree of a lead-in period within which entities subject to the Law will need to comply, the fact that the Law creates criminal offences means that compliance is all the more important and should be treated as a high priority.</p>'),
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