Middle East Focus - The Sovereign Group

The UAE Cabinet announced, on 18 April, the introduction of new executive regulations that expand eligibility to the existing 10-year Golden Residence Visa, create a new five-year Green Residence Visa, and bring in extended entry permits for tourists, visitors, jobseekers and students. The new rules are scheduled to come into effect in September of this year.

New Investment Law to treat Saudi and foreign investors equally

The Saudi Ministry of Investment announced, on 7 April, that it is drafting a new Investment Law that will provide for the equal treatment of local and foreign investors in respect of direct investments in the Kingdom. The Law aims to support the principle of competitive neutrality and fairness and ensuring equal opportunities in the treatment of direct investments made by public and private investors.

Bahrain launches new Golden Residency Visa programme

The Bahraini government launched a new Golden Residency Visa programme for residents and non-residents, as well as their families, on 7 February. Applications for the visa can be submitted online with immediate effect.

UAE agrees free trade deals with Israel and India, opens talks with Turkey

The UAE and Israel concluded negotiations for a free trade agreement on 1 April, which includes 95% of traded products that are to be customs free – immediately or gradually – covering food, agriculture, cosmetic products, as well as medical equipment and medicine.

Sovereign Saudi Arabia: Big 5 Saudi reinforces KSA’s growth vision

With some USD173 billion worth of projects under tender in the GCC, of which USD80 billion are in Saudi Arabia, the Big 5 Saudi Construction Leadership Summit – a leading construction platform for the latest technologies from world-leading brands – returned to Riyadh in March, for the second consecutive year.

UAE: compliance with VAT regulations rises in Q1

The UAE Federal Tax Authority (FTA) said, on 21 April, that the number of VAT registrants had increased to 367,157 in in the first quarter of 2022, compared to 358,468 in Q1 of 2021, an increase of 2.42%.

Dubai real estate sector continues to attract investors

Dubai’s property market is set to consolidate gains this year from a rebound that started in 2021, according to a report by S&P Global Ratings. Properties are relatively affordable with prices 25% to 30% below 2014’s peak, despite a significant uptick in 2021.

Saudi National Development Fund to inject USD152 billion by 2030

Crown Prince Mohammed bin Salman launched, on 14 March, the strategy for the Saudi National Development Fund (NDF), which is intended to inject SR570 billion (USD152 billion) into the Kingdom’s economy by 2030 and triple the share of non-oil GDP to SR605 billion over the same period.

Dubai Expo 2020 closes but legacy to continue

The pandemic-delayed Dubai Expo 2020 closed on 31 March after eight years of anticipation, an estimated USD8 billion in investment, 240 million hours of labour and six months of festivities.

Saudi’s fast-evolving landscape presents substantial opportunities to market entry

Saudi Arabia has adopted an increasingly global and reformist mindset to transform into a highly competitive business economy, in line with the government’s commitment to achieving the Vision 2030 blueprint.

Expo 2020 Dubai awards USD1.8 billion in contracts to SMEs

Expo 2020 Dubai awarded AED6.8 billion (c. USD1.8 billion) of contracts to small and medium-sized enterprises (SMEs), more than a quarter of all Expo 2020 Dubai contracts in terms of value. The total represented a significant contribution to a vital sector of Dubai’s economy and exceeded a commitment made in 2016 to award at least 20% of all direct and indirect spend to SMEs.

Saudi reopens to unvaccinated visitors

The Saudi health ministry announced the lifting, on 23 March, of key COVID-19 travel requirements for those entering the Kingdom. Visitors arriving in Saudi Arabia no longer have to show proof of vaccination are not required to take a PCR test before departure or to quarantine when they arrive.

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MIDDLE EAST FOCUS – MARCH 2022

sovereign — Fri, 25 Feb 2022 10:41:56 +0000

UAE to introduce new Federal corporate profits tax from June 2023
The UAE is to introduce a federal corporate tax on business profits that will be effective for financial years starting on or after 1June 2023, according to a statement issued by the Ministry of Finance on 31 January. The standard statutory tax rate will be set at 9% of taxable profits, with a zero-rate applying to profits up to AED375,000 (approx. USD100,000) to support small businesses and start-ups.

Saudi issues new guidance for Regional Headquarters Programme
The Ministry of Investment Saudi Arabia (MISA) has issued new guidance in respect of its Regional Headquarter (RHQ) Programme, which incentivises companies to set up their regional headquarters in Saudi Arabia by obtaining an RHQ business licence. The licenses are now available.
Read more>>>

Health intelligence start-up wins inaugural ‘Future Falcons’ event
P4ML, a data-driven health intelligence start-up, was announced as the winner of the inaugural AB Start-up Forum’s Future Falcons event as part of the Arabian Business Awards ceremony at Dubai’s Etihad Museum on 26 January. It secured a prize of AED250,000 in value of funding, mentoring, network and media support.
Read more>>>

How Saudi’s Vision 2030 is accelerating investments across its growing economy

Saudi Arabia’s significant progress towards Vision 2030 is accelerating growth in the Kingdom, despite ongoing Omicron concerns, according to foreign direct investment advisory Sovereign.

Bahrain issues transitional provisions guide to VAT rate change

The National Bureau for Revenue (NBR) published, on 24 December 2021, the VAT Rate Change Transitional Provisions Guide under Law No. 33 of 2021, which amended Decree-Law No. 48 of 2018 regarding Value Added Tax to increase the standard VAT rate from 5% to 10% as from 1 January 2022.

Saudi Arabia’s push to attract regional headquarters will boost commercial property sector

Saudi Arabia’s move to encourage multinational companies to set up their regional headquarters in the Kingdom will benefit the office sector in the Arab world’s largest economy, according to a report published in January by the Kuwait Financial Centre (Markaz).

UAE brings new Labour Law into force

The Federal Decree-Law No. 33 of 2021 regarding the regulation of labour relations in the UAE was brought into force on 2 February 2022, for all businesses, employers and workers in the private sector. The previous Federal Law No. 8 of 1980 for the regulation of labour relations was repealed.

Saudi Central Bank extends deferred payment programme for MSMEs

The Saudi Central Bank (SAMA) announced, on 30 December 2021, that it was to extend the Deferred Payment financing support programme for a further three more months from 1 January to 31 March 2022, for the benefit of micro and small and medium enterprises (MSMEs) that continue to be affected by the COVID-19 precautionary measures. The move was based on the assessment of the financing entities.

Saudi’s ‘unprecedented growth’ set to catalyse M&A activity in 2022

Saudi Arabia has become one of the most attractive markets for international companies seeking new mergers and acquisitions, and it is set to maintain its position in 2022.

Bahrain’s economy grows 10.19% in third quarter of 2021

Bahrain’s nominal economic growth in the third quarter of 2021 reached 10.2% while the real growth was 2.1%, with the expansion led by 5.9% nominal and 3.8% real YoY growth in the non-oil sector. By contrast, the oil sector expanded by 39.9% in nominal terms because of higher oil prices, but the sector contracted by 4.6% YoY in real terms.

Commerce Minister aims to put Saudi in top 10 global competitive economies by 2030

An ambitious plan of reforms for the Saudi economy aims to make it among the ten most competitive countries globally by 2030, said Commerce Minister Majid Al-Qasabi, head of the Executive Committee for Improving the Performance of Private Sector Business, also known as ‘Tayseer’.

Bahrain real estate transactions reach US$2.8 billion in 2021

Bahrain’s real estate transactions value rose by 46% in 2021 to USD2.8 billion, compared to USD1.9 billion in 2020, according to figures released by Bahrain’s Survey and Land Registration Board. The total number of real estate transactions in 2021 was 26,136, an increase of 35% over the 19,405 transactions completed in 2020.

UAE private sector pledges to put more women in leadership roles by 2025

A group of 18 leading local and multinational private sector companies from diverse sectors in the UAE signed a pledge on 18 January to achieve gender equality and empower women in work. The pledge aims to increase gender balance in the workplace, with an emphasis on increasing the representation of women in leadership positions to 30% by 2025.

Bahrain launches Telecommunications, ICT and Digital Economy Sector Strategy

Bahrain launched, on 12 January, a new four-year strategy to push ahead with digitalising the economy, including the telecoms and information technology (IT) sectors. The 2022-2026 Telecommunications, Information Technology and Digital Economy Strategy is in line with the objectives of the Economic Recovery Plan.

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MIDDLE EAST FOCUS – DECEMBER 2021

sovereign — Tue, 14 Dec 2021 10:49:50 +0000

UAE government moves to 4.5-day working week; private sector free to choose
The UAE announced that it is set to introduce a four and a half-day working week for all government employees from 1 January 2022, with Friday afternoon, Saturday and Sunday constituting the ‘new weekend’.

Bahrain announces major new economic growth and fiscal balance plan
The government of Bahrain announced a new national economic growth and fiscal balance plan on 31 October, which pushes a zero-deficit target back from 2022 to 2024 and increases the rate of VAT from 5% to 10% The multi-year plan is designed to support the post-COVID 19 recovery and boost the long-term competitiveness of the Bahraini economy.

Sovereign can assist with new ‘Saudisation’ rules
The Saudi Vision 2030 initiative is designed to boost the Kingdom’s economy by diversifying beyond oil and sets out commitments to other sectors including manufacturing, education and tourism. A key pillar of Vision 2030 is the ‘Saudisation’ programme, which is focused on creating and sustaining jobs for Saudi National citizens.

UAE introduces raft of amendments to accelerate economic transition
To coincide with celebrations to mark the Golden Jubilee of the creation of the UAE, the federal government introduced amendments across more than 40 existing laws on 27 November to further enhance the openness and competitiveness of the business environment and to accelerate the UAE’s transition towards a new economic model.

Dubai expands membership of the Free Zones Council
The government of Dubai has restructured the Dubai Free Zones Council (DFZC) via a new Decree No. 48 of 2021, which was approved by Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum on 6 December and will take effect on 1 January 2022. The move is to recognise the increased importance of the free zones in general and certain free zones in particular.

Saudia records over 500 flights in a day in post-pandemic recovery
Saudi Arabian national airline Saudia set a record for the number of daily flights since the beginning of the pandemic. The airline operated 507 flights on 4 December during the peak of operational movements.

Dubai’s Crown Prince seeks ‘strong partnerships’ to promote corporate social responsibility
Dubai’s Executive Council adopted new policies aimed at encouraging corporate social responsibility among private sector companies at a meeting held at Expo 2020 Dubai on 6 December. Council chairman Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum called for “strong partnerships” between the public and private sectors.

Saudi ‘mega-projects’ are help attract multinational regional HQs
Riyadh is seeing a surge in business activity from international companies setting up regional headquarters (RHQs) in the Saudi capital under the Kingdom’s push to become a regional commercial hub.

Dubai posts 69% jump in the issue of business licences
Dubai’s Department of Economy & Tourism issued 55,194 new business licences over the first 10 months of 2021, a 69% increase over the 32,626 licences issued in the same period in 2020, according to a report released in November.

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Middle East Focus – October 2021

sovereign — Wed, 27 Oct 2021 08:39:41 +0000

The countdown to the UAE’s Golden Jubilee gets underway
The UAE is this year celebrating the Golden Jubilee of its creation on 2 December 1971, when six of the emirates – Abu Dhabi, Ajman, Dubai, Fujairah, Sharjah and Umm Al Quwain – approved the Act of Union to form the United Arab Emirates. The seventh emirate, Ras al-Khaimah, joined a few weeks later in January 1972.

Bahrain launches ‘Global Sea-Air Hub’ to in the region
The Kingdom of Bahrain launched the Gulf’s fastest sea-to-air logistics hub in September with the promise of only a two-hour turnaround time for all containers – meaning that goods can be delivered at twice the speed of pure sea freight and only 40% of the cost of pure air freight.

Saudi Arabia pledges 2060 net zero target ahead of COP26 summit
Saudi Arabia pledged to cut carbon emissions to net zero by 2060 while also maintaining its role as a leading producer of oil and gas, according to announcement by Crown Prince Mohammed bin Salman at the start of the Kingdom’s first Saudi Green Initiative Forum on 23 October. The Forum took place one week ahead of the Cop26 climate conference in Glasgow and the G20 leaders’ meeting in Rome.

Dubai holds key to unlocking Africa’s potential
“The UAE offers the right level of expertise, investment and resources needed to fill market gaps in Africa and support the continent’s sustainable growth and development,” said Dubai Chamber President and CEO Hamad Buamim.

Dubai’s economy continues to rebound from Covid shock
As evidence of renewed business confidence, a total of 6,928 new company licences were issued in Dubai during September amid, a jump of 68% over the same period in 2020 when the effects of the Covid-19 pandemic were still being felt acutely.

Abu Dhabi launches USD1.4 billion IPO fund to support SMEs
Abu Dhabi’s Supreme Council for Financial and Economic Affairs launched a AED5 billion (USD1.4 billion) IPO fund designed to strengthen the Abu Dhabi Securities Exchange (ADX) as a leading stock market and to support the private sector to contribute to Abu Dhabi’s sustainable economic development.

Dubai Expo 2020: delayed world fair gets off to good start
Expo 2020 Dubai, the first world fair to be held in the Middle East, opened on 30 September with a lavish ceremony of fireworks, music and messaging. Drawing inspiration directly from Expo’s theme of ‘Connecting Minds, Creating the Future’, ceremony took spectators on a journey across its subthemes of opportunity, mobility and sustainability.

Saudi Arabia offers huge opportunities for European companies
Governments all over the world are seeking to encourage foreign investment to help alleviate the negative effects of the COVID-19 pandemic and regenerate their productive capacity, but Saudi Arabia stands out as one of the most compelling markets for foreign investors – and it is a country where European companies will find they have much to offer.

Dubai to create new ‘Super’ Free Zone Authority
A new body – the Dubai Integrated Economic Zones (DIEZ) Authority – is to be created to oversee the Dubai Airport Free Zone (DAFZA), Dubai Silicon Oasis (DSO) and Dubai Commerce City (DCC). Companies and individuals licensed under the DIEZ will be exempt from all taxes, including income tax, for 50 years as of 1 January 2022.

Saudi Arabia opens airports at full capacity
Saudi Arabia has reopened its airports at full capacity for international and domestic flights as the country begins to return to ‘normal’ for the first time since the onset of the coronavirus pandemic in March 2020.

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Middle East Focus – August 2021

sovereign — Tue, 31 Aug 2021 07:06:29 +0000

Final countdown to Expo 2020 Dubai
Expo 2020 Dubai, set to open on 1 October and run to 31 March 2022 under the slogan ‘Connecting Minds, Creating the Future’, is expected to attract more than 25 million visitors from all over the world to drive collaboration and innovation to develop real-life solutions as the world heads into a post-pandemic economic recovery.

UAE trade with Israel set to accelerate during Dubai Expo
Israel and the United Arab Emirates, which normalised relations a year ago, are looking to Dubai’s Expo world fair in October to boost bilateral trade, which now stands at around USD712 million. The UAE and Bahrain both signed deals to establish ties with Israel last September, followed by Sudan and Morocco.

Saudi Arabia creates new Zakat, Tax and Customs Authority
The Saudi Cabinet approved a measure in May to merge the General Authority of Zakat & Tax (GAZT) with the General Authority of Customs to form an umbrella authority named the ‘Zakat, Tax and Customs Authority’ (ZTCA). The move forms part of Saudi efforts to restructure government agencies to speed the implementation of the ‘Vision 2030’ national transformation plan.

DMCC free zone records best first-half since 2013
The Dubai Multi Commodities Centre (DMCC) free zone licensed an additional 1,230 businesses in the first six months of 2021, the highest number since 2013. This builds on the 2,025 firms that signed up last year, benefiting from the DMCC’s COVID-19 relief packages and incentives.

Bahrain-GCC trade for the first half of 2021 shows a significant rebound
Bahrain trade with Gulf Cooperation Council (GCC) member states for the first half of 2021 reached around USD3.45 billion, up from USD2.88 billion in H1 2020, according to the latest figures released by Bahrain’s eGovernment and Information Authority.

Dubai Economy records 63% increase in DED Trader licences during H1 2021
The Dubai Department of Economic Development (DED) reported that it had issued 3,243 DED Trader licences during the first half of 2021, a 63% increase over H1 2020, when 1,989 licences were issued.

Bahrain Liquidity Support Fund begins receiving applications
The Liquidity Support Fund (LSF) began receiving applications for the financing of private sector companies and establishments on 1 July. Applications opened for large companies, with an annual income of BHD3 million and above, until 1 August through the nbbonline.com website.

Saudi Arabia seeks global partners to tap cultural opportunities
Saudi Arabia is seeking partnership with global partners, including leading international museums, after adding culture to the forefront of its investment agenda in the wake of the G20 meeting last year.

UAE reinforces commitment to combat money laundering
The UAE’s Ministry of Economy reaffirmed in August its commitment to fighting money laundering and the financing of terrorism and illegal organisations, in line with its aim of fully complying with the international Financial Action Task Force (FATF) obligations.

Ras Al Khaimah permits RAKICC companies to conduct onshore business
The Ras Al Khaimah Department of Economic Development (RAK DED) signed a Memorandum of Understanding (MoU) in August with the Ras Al Khaimah International Corporate Centre (RAKICC) that will provide for offshore companies registered in RAKICC to expand their businesses in the mainland.

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Middle East Focus June 2021

sovereign — Wed, 30 Jun 2021 12:53:12 +0000

Pandemic: End of Service Benefit (EOSB) planning is key
The UAE has rightly been praised for its efforts in combatting the local spread of Covid 19. Businesses have benefitted from the country’s pragmatic approach, which has put safety first while also ensuring that the wheels of commerce have continued to turn.

UAE opens up to 100% foreign ownership of companies
As of 1 June, foreigners opening a company in the United Arab Emirates are no longer required to have an Emirati shareholder or agent under significant amendments to the UAE Commercial Companies Law (CCL) that were first announced last November.

Dubai and Abu Dhabi drop down list of world’s most expensive cities
Dubai dropped 19 places, from 23rd most expensive city to 42nd, in Mercer’s 2021 Cost of Living City Ranking, while Abu Dhabi also dropped 17 places from 39th to 56th. The 2021 ranking, which includes 209 cities across five continents, measures the comparative costs of more than 200 goods and services in each location.

Saudi Arabia lifts travel ban for 11 countries
The Saudi Ministry of Health announced that travellers from 11 countries, including the US and UK, who have been fully vaccinated against COVID-19 will be permitted travel to Saudi Arabia from 30 May, provided quarantine procedures are followed upon arrival.

Dubai sees start-up boom on back of residence initiatives
Dubai is expected to attract up to 250 more start-ups this year, more than over the last three years, as the Covid pandemic has seen a surge of fledgling companies setting up in the Emirate, according to Mohammed Alblooshi, sector head fintech and innovation at the Dubai International Financial Centre (DIFC).

UAE signs Double Tax Agreement with Israel
The UAE signed a Double Tax Agreement (DTA) with Israel on 31 May, which is intended to incentivise business development between the countries following their decision to ‘normalise’ relations last year. The treaty must be ratified by both countries and is expected to enter into force on 1 January 2022.

UAE to implement UBO Regulations from 1 July
The UAE Ministry of Economy has authorised licensing authorities across the country and in the non-financial free zones to begin implementing administrative penalties and fines against any companies that fail to submit ultimate beneficial ownership (UBO) information. The implementation of penalties for non-compliance will start as of 1 July 2021.

Digitisation is accelerating Saudi’s corporate foreign investment growth
Government services that used to take months to complete now take weeks, although challenges remain for those looking to set-up shop in the Kingdom.

Dubai Airport: Terminal 1 reopens after over a year
Dubai International Airport (DXB) reopened Terminal 1 and Concourse D on 24 June, some 15 months after it was closed on 25 March 2020 as part of the Dubai’s strategy to control the spread of Covid-19. Operations resumed with the arrival of flynas flight XY201 from the Saudi Arabian capital of Riyadh.

Investment flows into Asia defy COVID-19, grow by 4%
Developing Asia was the only region that recorded growth in foreign investment in 2020, accounting for more than half of global inward and outward flows, according to UNCTAD’s World Investment Report 2021 published on 21 June. Foreign direct investment (FDI) flows to developing countries in Asia increased by 4% to USD535 billion in 2020, reflecting resilience amid global FDI contraction.

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MIDDLE EAST FOCUS – APRIL 2021

sovereign — Tue, 27 Apr 2021 08:35:39 +0000

DMCC now open for crypto currency business
The Dubai Multi Commodities Centre (DMCC) signed a Memorandum of Understanding (MoU) with the Securities & Commodities Authority (SCA) that is intended to lead to the establishment of rules and regulations for listing and trading crypto currencies in DMCC.

UAE and Israel move closer to tax treaty that will help boost foreign investments
The UAE, the Arab world’s second-largest economy, is moving closer to finalising a double tax agreement (DTA) with Israel that will boost economic activity and make the two nations more attractive to international investors.

Saudi launches new investment programme to transform economy
At the end of March, Saudi Crown Prince Mohammed Bin Salman announced the launch of a new ‘Shareek’ partner programme between the private and public sectors to raise domestic investments to transform the economy as a part of his ambitious Vision 2030 project.

RAK ICC signs deal to permit corporate property ownership
The Ras Al Khaimah International Corporate Centre (RAK ICC) has signed a memorandum of understanding (MoU) with the Ras Al Khaimah Municipality Department (Land and Properties Sector) to permit investors to purchase and register properties in the Emirate, as well as structure their investments under a RAK ICC entity.

Bahrain ranks first in Middle East for cost competitiveness and FDI strategy
Bahrain’s capital Manama has been named as fifth amongst all-sized cities globally and first amongst small and mid-sized cities for FDI strategy in the 2021 ‘Global Cities of the Future’ index published by the Financial Times’ fDi Magazine. Both Abu Dhabi and Dubai similarly ranked in the top 10, with Abu Dhabi placing sixth and Dubai placing eighth.

Saudi Arabia to invest USD66 billion in healthcare by 2030
Saudi Arabia has set out plans to invest $66 billion in healthcare infrastructure and boost the private sector participation by 2030. According to a new Gulf Cooperation Council (GCC) report, published on 4 April, the Kingdom plans to boost private sector participation from 40% to 65%.

Bahrain launches digital Covid ‘vaccine passport’
Bahrain has becoming one of the first nations in the world to launch a digital Covid ‘vaccine passport’. The country’s ‘BeAware’ app enables individuals to show their immunity status two weeks after receiving both doses of the jab when antibodies have started developing.

UAE Cabinet extends Remote Work Visa from Dubai to all Emirates
The UAE Cabinet adopted legislation on 21 March to provide for the introduction of a new ‘Remote Work Visa’ that enables employees from all over the world to live and work remotely from the UAE for one year, even if their companies are based in another country. It also approved a multiple-entry tourist visa for all nationalities.

Bahrain seeks PPP partner to build national metro network
Bahrain has launched a procurement process for the construction of the Bahrain Metro, a multi-billion-dollar project to develop a rail transport network across the kingdom through a public-private partnership (PPP).

Saudi start-ups raise USD76 million in the first quarter of 2021
Saudi start-ups raised USD76 million from 28 deals in the first quarter of 2021, a 137.5% increase on the 13 deals worth USD32 million reported in the fourth quarter of 2020.

Saudi’s share of Gulf economy rises to almost half in 2020
Saudi Arabia increased its share of the GCC economy to almost half in 2020, as it weathered the COVID-19 pandemic better than many its neighbouring Arab states. Saudi accounted for 49.8% of the bloc’s economy in 2020, up from 48.4% in 2019, according to the Al Eqtisadiah newspaper, which used data from the International Monetary Fund (IMF) and Gulf statistical agencies.

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MIDDLE EAST FOCUS – FEBRUARY 2021

sovereign — Tue, 23 Feb 2021 14:00:34 +0000

UAE to offer citizenship to select foreigners
The UAE government announced plans on 30 January to offer citizenship to a select group of foreigners. The proposed changes will allow the UAE to grant citizenship to selected investors and professionals, including scientists, doctors, engineers, artists, authors and their families.

Riyadh seeks role as Middle Eastern regional headquarters venue
The growing attraction of Riyadh as an economic, financial and investment hub has been underlined by recent decisions by 24 multinational companies to establish their regional headquarters in the Saudi capital.

Saudi lifts prohibition on foreigners running Saudi firms
Expat workers and business people have welcomed the decision by the Saudi government to allow foreign nationals to run Saudi-owned firms for the first time. The move was announced in January by the Ministry of Justice and is intended to strengthen and broaden economic activity in the Kingdom.

New passenger terminal opens at Bahrain International Airport
Bahrain International Airport (BAH) announced the successful opening of its new Passenger Terminal Building on 28 January. Local flag carrier Gulf Air operated the first commercial flights in and out of the new terminal. The first departure took off for Delhi at 14:35 local time. Shortly after, the first incoming flight arrived from Lahore.

Saudi launches ‘The Line’ within the NEOM project
Saudi Arabia’s Crown Prince Mohammed bin Salman launched a futuristic new city called ‘The Line’, within his hugely ambitious US$500 billion NEOM project, a proposed urban development in northwestern Saudi Arabia.

DMCC launches new flexible pricing packages for companies
The Dubai Multi Commodities Centre (DMCC) has launched two new packages – ‘Jump Start’ for small companies and start-ups and ‘Prime Plus’ to support medium and large companies – to support new businesses in the free zone by providing further discounts and offers on the company’s incorporation packages. They will both be available from February 2021.

Why you should consider the Ras Al Khaimah (RAK) Economic Zone
If you are looking to register your company in the UAE, there are many good reasons to consider setting up in the Ras Al Khaimah (RAK) Economic Zone.

Located close to Saqr Port (seaport) and boasting an excellent logistics network, the RAK Economic Zone (RAKEZ) is home to over 15,000 Free Zone Companies. Offering world class infrastructure, 0% personal and corporate income taxation and a low cost of doing business, RAKEZ is a highly advantageous jurisdiction for those looking to enter the UAE market.

Five good reasons to prepare Financial Audit Reports in the United Arab Emirates
An audit is an independent examination of the financial report of an entity – including balance sheet, income, equity and cash flow – to form a view on whether the information presents a true and fair view of the financial results and position of the entity and whether it is in compliance with the relevant financial reporting standards and any applicable rules and regulations.

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MIDDLE EAST FOCUS – DECEMBER 2020

sovereign — Tue, 08 Dec 2020 12:44:14 +0000

Sovereign reshapes Middle East management in advance of Saudi expansion
Sovereign Middle East has announced changes to the boards of its Dubai, Bahrain and Saudi Arabia offices that are designed to deliver a focus on growth in the region and to meet the high level of business generation that this entails.

Nicholas Cully, who also sits on the Group Board of the Sovereign Group as Sales Director, will be stepping down as Managing Director of Sovereign’s Dubai office on the 1 December 2020 after five years in the role and over a decade in the Emirate.

UAE announces reform of foreign ownership and investment laws
One of the biggest trending topics across media in the United Arab Emirates for the past few days has been the announcement of the reform of the current foreign ownership restrictions and the proposal to permit foreign investors to have 100% ownership when establishing ‘onshore’ companies in the UAE Mainland (outside the free zones in which 100% foreign ownership is already permitted).

UAE and Israel deal opens doors to business
The postponement of Expo 2020 Dubai by a year to October 2021 due to the coronavirus outbreak was hugely disappointing. After all, the six-month, multibillion-dollar global innovation fair was expected to attract some 24 million visitors and be the largest such event ever staged in the Arab world. But despite this setback, the second half of 2020 has proved to be a positive and exciting time for the Gulf region.

Bahrain amends the Commercial Companies Law
His Majesty King Hamad issued Decree 28 of 2020, on 28 September, to amend certain provisions of the Bahrain Commercial Companies Law (BCCL) to bring it into line with international best practice, to promote enterprise in Bahrain and to encourage investors to choose Bahrain as the destination of choice for doing business in the Middle East region.

Saudi Arabia to abolish ‘kafala’ sponsorship system in March 2021
Saudi Arabia is to abolish the foreign worker sponsorship system, also known as ‘kafala’, next year and replace it with a new contract between employers and employees, according to an announcement made by the Ministry of Human Resources and Social Development (HRSD) on 4 November.

Abu Dhabi Global Market (ADGM) partners with Companies House Gibraltar (CHG)
Abu Dhabi Global Market (ADGM), the leading international financial centre in the MENA region, signed a Statement of Co-operation (SoC) with Companies House Gibraltar (CHG), Gibraltar’s registration authority, on 19 October 2020. It is intended to enhance collaboration through the exchange of knowledge and ultimately to augment their respective registration functions.

UAE amends laws on public notaries and inheritance
The UAE Cabinet approved, on 9 November, a raft of amendments to laws governing evidence in civil and commercial transactions in order to enable public notaries to do their job remotely and to enhance the digital transformation of government services. The move followed the announcement of sweeping changes to the UAE’s legal system in respect of family law and other areas affecting people’s daily lives.

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MIDDLE EAST FOCUS – October 2020

sovereign — Mon, 12 Oct 2020 13:47:39 +0000

UAE companies required to keep beneficial ownership register
The UAE issued Cabinet Resolution No. 58 of 2020 on the Regulation of the Procedures of the Real Beneficiary, which came into force on 28 August 2020, to introduce a requirement for a beneficial ownership register in the UAE mainland and to unify the minimum disclosure requirements for corporate entities incorporated on the UAE mainland and in the non-financial free zones.

Dubai issues law to regulate Family Ownership
The Ruler of Dubai issued Law No (9) of 2020 Regulating Family Ownership on 13 August, which provides a governance framework that is appropriate for family-owned property and businesses. The intention is to ensure the continuity, development and smooth transition of family property from one generation to another.

UAE makes changes to Economic Substance Regulations
10 August 2020, the UAE Cabinet of Ministers issued Cabinet Resolution No. 57 of 2020, which repeals and replaces Cabinet Resolution No.31 of 2019 and introduces significant changes to the scope and application of the UAE’s Economic Substance Regulations (ESR).

The amended ESR apply as of 1 January 2019 and require entities to reassess their position and resubmit their 2019 financial year notifications by the end of 2020. The UAE Minister of Finance also issued an updated guidance on 19 August.

Export Bahrain launches national e-commerce initiative
Export Bahrain, a lead initiative of the national SME Development Board, launched a national e-commerce initiative on 23 September, which is designed to promote a borderless marketplace for products and services made in Bahrain.

To support the objectives of this new initiative, Export Bahrain has established exclusive partnership agreements with a growing list of prominent e-commerce platforms that are designed to provide highly competitive cost savings and incentives to businesses listing their products and services.

UAE proposes granting citizenship to expats meeting certain criteria
The United Arab Emirates is set to amend its laws governing citizenship to make it possible for foreign investors, entrepreneurs, professionals and people with special talents to receive Emirati nationality provided they meet certain criteria.

Dubai announces launch of ‘Retire in Dubai’ programme
The Dubai Government announced, on 2 September, the launch of a global retirement programme – ‘Retire in Dubai’ – to provide foreign retirees with the opportunity to retire in Dubai. Previously expatriates who lived and worked in Dubai were obliged to retire abroad once they ceased working and their work visa expired.

Time to address any non-compliant business structures in Saudi Arabia
Some businesses in the Kingdom of Saudi Arabia (KSA) may have been structured to circumvent the Kingdom’s foreign ownership restrictions in order to benefit from the more favourable tax treatment that is available under the Zakat tax regime rather than the Corporate Income Tax (CIT) levied on profit.

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