AI use among internet users in Saudi Arabia has more than doubled in a year, reaching 45.2%, while billions of dollars continue to go into the infrastructure supporting the technology across the GCC.

Until recently, much of the Gulf AI story centred on investment, national AI strategies and what governments planned to build. In 2026, those plans are becoming easier to see in the commercial market, as infrastructure comes into use and companies find more ways to apply AI and scale AI within their own businesses.

The region is maturing as AI leaders. GITEX Global, Dubai AI Festival, Blockchain Life & AI Future Week, Web Summit Qatar, Global A Show in Riyadh are among the many industry events drawing industry investors to the GCC. There are also many active initiatives encouraging and engaging entrepreneurs to become part of the change and bring strategic value. The Dubai Chamber recently launched an AI initiative, calling on UAE residents and entrepreneurs to build AI agents that are designed to solve problems. They have launched a prize and the winners will receive a USD150,000 grant to develop, grow and scale their AI-agent and AI driven solution.

Saudi Arabia’s AI data centre capacity has grown several times over since 2021, reaching more than 467MW by the first quarter of 2026. Further development is coming through HUMAIN, the AI company owned by the Public Investment Fund, as the Kingdom builds more of the digital infrastructure needed to support AI locally.

Large AI projects and initiative are also taking shape elsewhere in the Gulf, with the UAE’s Stargate project expected to begin coming online in Abu Dhabi during 2026 and Qatar putting substantial capital behind AI infrastructure through a USD20 billion partnership between Qai and Brookfield. Building this level of infrastructure within the region points to the Gulf becoming a larger market for developing and delivering technology services, rather than primarily a customer for technology developed elsewhere.

Global AI opportunities

The rapid increase in AI adoption and AI usage in Saudi Arabia is beginning to have a parallel in business, with more than a third of GCC business leaders surveyed by PwC already integrating AI into their products and services.

But only 16% of GCC CEOs said their most-used AI tools could access all the company information they required. That gap says quite a lot about where businesses are with AI systems. Adoption is moving quickly, while the data and systems needed to get more from the technology are often catching up.

For technology companies, some of the opportunity sits in that gap. Helping an established business organise its data or connect AI with the systems it already uses can be just as commercially relevant as supplying the technology itself.

Growing demand for AI-related skills in the UAE is already reflecting some of that activity, with technical expertise increasingly finding its way into established businesses as they introduce AI into work they already do.

For overseas technology companies, this broadens the potential customer base beyond the large infrastructure projects attracting most of the attention. An established business trying to make better use of AI can become a customer too, bringing opportunities closer to the day-to-day needs of companies across the Middle East.

A technology company generating most of its work from Saudi customers may find a local presence increasingly useful as those relationships develop, while one serving clients across several Gulf countries has more reason to consider a regional base.

The UAE’s established international technology community and growing computing capacity can suit that wider regional role. Qatar offers another route into the market as sovereign capital supports AI infrastructure locally and overseas, with its relevance depending on the customers and projects a company expects to develop there.

Saudi Arabia presents a different commercial proposition where the domestic market itself is the main attraction. With AI capabilities changing, use of AI increasing quickly and substantial investment continuing in the sector, technology companies targeting Saudi customers may have stronger reasons to build their operation closer to them.

As investment turns into wider business use, the opportunities developing around AI will increasingly be found in the companies adopting the technology as well as the major projects behind it. For international technology businesses, where those customers and projects develop will help determine where a presence in the GCC makes commercial sense.

How Sovereign can help artificial intelligence companies across the GCC region

Sovereign supports international businesses establishing and expanding across GCC markets, including technology companies entering the region.

For businesses responding to opportunities in the Gulf’s growing technology market, Sovereign can support the establishment and ongoing administration of local or regional operations, based on where the company expects to do business and how it plans to serve its customers.

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Over the past two decades, Qatar has expanded the ways in which international businesses can establish in the country, developing specialist jurisdictions for different types of activity as part of the wider Qatar National Vision. That has given investors more choice, but it has also created separate registration and licensing processes depending on where a business establishes.

On 14 September 2026, Qatar launched Companies House to bring more of that administration together. The new body takes responsibility for company registration and licensing across four of the country’s main business jurisdictions, as part of a wider effort to unify company registration and make establishing and operating a business more straightforward.

Bringing four jurisdictions together with Companies House Qatar

Companies House is responsible for registering and licensing businesses operating through the Qatar Financial Centre, Qatar Free Zones Authority, Qatar Science & Technology Park and Media City Qatar.

It will also maintain the public registers for all four jurisdictions, with its remit extending into tax and immigration services as well as checks relating to labour standards and data protection.

Until now, businesses establishing through these jurisdictions have dealt with their respective authorities and processes. Bringing key functions together should create greater consistency in how companies move through registration and the administration that follows.

For international investors unfamiliar with Qatar, the different establishment routes can take time to understand. A business may know what it wants to do in the country without immediately knowing which jurisdiction best fits those activities. Bringing the main registration functions together should make that initial route easier to follow.

Companies House follows a series of changes aimed at making the interaction between businesses and government more efficient. Qatar already operates its Single Window for companies established through the Ministry of Commerce and Industry, while the Unified Economic Register brings together economic and beneficial ownership information held by different authorities.

Further digital business services announced by the Ministry shortly after the launch of Companies House continue in the same direction. Rather than dealing with information and services at different stages of establishing and operating a business, the intention is increasingly to connect them around the investor.

Registration, licensing procedures, tax and immigration are closely connected once a business begins operating, so bringing more of those functions together should make the administrative side of entering Qatar easier to follow.

Companies House is still new, and further detail will be needed on how the arrangements work in practice. Its launch nevertheless creates a central body through which several important parts of company establishment can be coordinated.

Companies House brings parts of the establishment process together, but QFC, QFZ, QSTP and Media City Qatar remain distinct. Businesses will still need to consider which jurisdiction is appropriate for their activities, operating plans and regulatory requirements.

The change should therefore make the administrative route into Qatar more consistent without removing the underlying choice an investor needs to make. For international companies unfamiliar with the market, separating those two questions may itself make the establishment process easier to understand.

Planning company registration in Qatar?

Contact Us

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For many successful entrepreneurs in Zimbabwe and Nigeria, building a business has been a lifetime achievement. Over decades, family enterprises have grown into substantial operations with interests in property, agriculture, manufacturing and international trade.

While considerable attention is given to expanding these businesses, the question of what happens when ownership passes to the next generation is often overlooked.

Without proper succession planning, wealth accumulated over many years can become a source of uncertainty. Inheritance disputes, fragmented ownership and conflicting interests among family members can threaten the stability of even well-established businesses.

For high-net-worth families, the challenge is not deciding who will inherit their assets, but how to preserve family wealth and maintain business continuity.

In many family businesses, the founder maintains substantial control over ownership, management and financial decisions. While this may work effectively during their lifetime, complications can arise when shares and responsibilities pass to multiple heirs.

Some family members may wish to continue operating the business, while others may prefer to sell their interests or receive regular income. These competing priorities can create disagreements and place pressure on the company’s long-term strategy.

The situation becomes more complicated where families own assets across several countries or where beneficiaries live abroad. Without a clear estate planning and succession strategy, transferring wealth between generations can become a lengthy and potentially disruptive process.

Discretional Trusts for Estate Planning

A discretionary trust offers one possible approach to comprehensive estate planning and addresses these mentioned challenges. Under this arrangement, the founder, known as the settlor, transfers assets to trustees, who hold and administer them for the benefit of the designated beneficiaries. Rather than distributing assets directly among individual heirs, the trustees can exercise discretion over how and when benefits are distributed (i.e. For example, only after the minor children turn 18 years old), subject to the trust deed and their fiduciary duties. This can be particularly valuable for families wishing to preserve the ownership of a business while providing financial support to different generations.

Consider a Nigerian entrepreneur who owns a successful manufacturing business and has three children, only one of whom is actively involved in its management. Leaving the company’s shares directly to all three could create difficulties if they disagree about the business’s future.

One possible solution could involve establishing a discretionary trust under which the trustees hold shares in the family business, either directly or through an appropriate holding company.

The child involved in the business could continue managing its operations, while the other family members could benefit from distributions determined by the trustees. This would allow ownership and day-to-day management to be addressed separately, without necessarily dividing the underlying business among the heirs.

Such arrangements require careful consideration of the relevant inheritance, corporate, income tax, tax implications and regulatory requirements, particularly when transferring assets across jurisdictions. Careful financial planning therefore becomes a central point of the conversation.

Mauritius

Mauritius has developed an established international financial services sector, supported by a legal and regulatory framework for trust and fiduciary services. The Mauritius Trusts Act 2001 provides the legal framework for establishing and administering trusts, including discretionary arrangements used for succession and family’s financial planning.

• Mauritius trusts are required to have at least one qualified trustee, providing a framework for professional administration and oversight.
• For families in Zimbabwe and Nigeria with international investments or beneficiaries residing in different countries, Mauritius may offer a practical jurisdiction for coordinating the administration of family wealth and business succession.
• A properly established trust can provide continuity in the estate administration, considering asset protection beyond the founder’s lifetime, while allowing trustees to consider the changing circumstances and needs of beneficiaries.

Effective succession planning extends beyond the transfer of assets. The estate planning process involves having a proper plan including establishing clear governance arrangements, selecting appropriate trustees and determining how family interests should be managed over time.

For business owners in Zimbabwe and Nigeria, addressing these questions early can help reduce uncertainty and establish a clearer framework for future generations.

Sovereign Group assists international families with estate planning in South Africa, Mauritius and clients across the African continent. We support with trust establishment, professional trustee services, corporate structuring and ongoing administration. Our Mauritius team works alongside families and their legal and financial advisers to develop arrangements that reflect their succession objectives and long-term wealth planning needs.

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The first few months after establishing a foreign company in Saudi Arabia involve a particularly concentrated period of compliance. Requirements are spread across different government systems and some only become relevant as the business starts operating, which makes it easy for individual steps to be dealt with later than intended.

The first 90 days after company incorporation are an important period for getting those arrangements in place before they begin to affect the company’s day-to-day operations.

Complete the tax registration 

Following commercial registration with the Ministry of Commerce, ZATCA generates a Tax Identification Number for the new entity. Foreign establishments then need to complete their corporate income tax registration with ZATCA, so the tax account should be checked rather than assuming the initial registration has dealt with everything. Companies should complete corporate tax registration within 60 days of registering with MOC to adhere to tax deadlines.

VAT follows a different timetable because registration depends on the circumstances of the business. Where registration is required, it needs to be considered alongside when the company expects to start making taxable supplies. Mandatory VAT registration is required once the business taxable turnover exceeds SAR 375,000 while voluntary registration is available to businesses between the SAR 187,500 to SAR 375,00 threshold.

This is often where the commercial timetable starts to meet the compliance calendar. A new Saudi operation may be preparing its first customer contracts and invoices while its finance processes are still being established. If VAT applies, the accounting system needs to be ready to deal with it from the start.

National address

National address is required to be registered with Saudi Post (SPL). The national address must be tied to the company’s Commercial Registration and mandatory for key portals registration and bank opening documentation.

Corporate bank account

Although there is no specific legal requirement that newly incorporated companies must open a corporate bank account within a set number of days, in practice, this should be treated as an immediate post-incorporation task as the company cannot effectively operate without one. The corporate bank account is needed to inject share capital, receive customer payments, pay staff salaries and pay ZATCA and government portal fees. The company General Manager should have already obtained their Iqama card and must be physically present in the country to open the corporate bank account.

Prepare human resources for the first hires

Recruitment can begin quickly once a foreign company is established, particularly where staff are being transferred into Saudi Arabia or the business needs a local team before it can start operating fully.

It is important to note that after the companies General Manager, the first hire should be a Saudi National employee.

As people join, employment contracts are documented through Qiwa and the applicable GOSI requirements come into play. These systems are connected to the company’s wider employment position, so the employee records created during the first hires need to be accurate from the beginning.

There is an additional point for companies recruiting in 2026. Since 15 April, electronically documented employment contracts on Qiwa have been used in calculating Saudisation percentages under the Nitaqat programme.

That gives contract documentation a direct connection to the company’s Saudisation position. Nitaqat status can in turn affect access to employment services, including the ability to obtain work visas, which is particularly relevant for foreign companies planning to bring employees into the Kingdom.

The hiring plan therefore needs to take account of the company’s Saudisation position as the team develops. Waiting until an expatriate employee needs a visa can leave much less room to deal with an issue in the workforce structure.

Additionally, employers are required to obtain medical insurance for all company employees by a locally approved provider as Iqamas and residencies can’t be issued without it.

Get payroll compliance right from the beginning 

The first employees also bring payroll and social insurance requirements into the company’s normal monthly administration.

General Organization for Social Insurance (GOSI) records need to reflect the employees working for the company, and payroll needs to be operated in accordance with the requirements applying to the workforce. Wage Protection System (WPS) requirements may also apply as the company begins paying salaries.

Responsibility also needs to be clear internally. Whether payroll is handled by the Saudi company, a local provider or as part of a wider group process, the Saudi records still need to correspond with what is happening locally.

Make sure the ownership record is current 

Foreign companies should also check the beneficial ownership information held for the new Saudi entity. Saudi Arabia’s Beneficial Ownership Rules, introduced at the end of 2025, require companies to identify their ultimate beneficial owners and maintain a dedicated record of that information.

This can require some work for international groups. The immediate shareholder of the Saudi company may itself be another company, with further entities sitting between it and the individuals who ultimately own or control the structure.

The rules generally look first at direct or indirect ownership of at least 25%. Where this does not identify the beneficial owner, other forms of control are considered.

The information used during establishment should therefore be supported by the wider ownership and corporate records and kept current if the group structure changes.

Be ready before the first invoice 

A company preparing to bill its first Saudi customer should already know how the transaction will be treated for VAT and how the invoice will be generated.

This can require changes to systems already used elsewhere in an international group. An accounting platform that works for the parent company does not automatically produce invoices that meet Saudi requirements, although in many cases the existing system can be configured appropriately.

Where the entity falls within the Saudi e-invoicing requirements, invoices need to be generated through a compliant electronic solution. Companies notified that they fall within a Phase Two wave will also need to integrate their solution with ZATCA’s Fatoora platform by the applicable deadline.

Sorting this out before invoicing begins avoids having the finance team redesign the process once transactions are already being recorded.

What should be in place after 90 days? 

There is no single Saudi rule requiring every foreign company to complete the same set of actions within 90 days. The timing will depend on when the company starts trading, whether it has employees and which requirements apply to its business activities.

Some businesses will also have sector-specific licences or regulatory requirements that sit outside the general post-setup process.

Using the first 90 days to get these requirements working alongside the business can prevent routine post incorporation compliance issues from becoming obstacles as the Saudi operation develops.

Sovereign PPG supports clients with company formation, company registration and operational readiness in Saudi Arabia. We provide a full suite of services including hiring employees and ongoing compliance requirements around accounting, bookkeeping and government portals maintenance.

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The Department of the Registrar of Companies and Intellectual Property (DRCIP) issued a reminder on 16 September to all Cyprus registered entities to confirm the details of their Beneficial Owners (BOs) or Senior Management Officials (SMOs) in the Beneficial Owners Register (BOR) or, if applicable apply due diligence, between 1 October and 31 December 2026.

This annual requirement applies to all companies incorporated or registered under the Cyprus Companies Law, Cap. 113, as well as all European Public Limited Companies (SEs) and Cyprus partnerships, regardless of whether there have been any changes to the information on the BOR.

Any Cyprus registered entity that fails to complete the confirmation of information on the BOR system within the annual confirmation period will be subject to a fine of €100 for the first day of non-compliance, and an additional fine of €50 for each subsequent day of continued violation, up to a maximum total fine of €5,000. The penalties apply regardless of any potential criminal liability or prosecution.

In cases where the initial registration of a Cyprus registered entity, or any change or other action on the BOR system, falls within the confirmation period, the relevant action should be performed first and then the confirmation of the BOs, SMOs or where applicable due diligence must be completed by 31 December of each calendar year.

Where a partnership’s deadline for initial submission, which is 90 days from the date of incorporation or registration, falls within the confirmation period, its BOR information must also be confirmed by 31 December of each calendar year.

Confirmation of BOR information is only required to be performed once during the confirmation period in each calendar year. If a change or any other action occurs after confirmation, no additional confirmation is required in that calendar year.

In June, the Department of Registrar of Companies & Intellectual Property signed an administrative cooperation agreement with the European Anti-Fraud Office (OLAF). Cyprus was the sixth of the 27 EU member states to sign an agreement.

The agreement gives OLAF “secure and effective access” to information held on the Department’s registers, including the Register of Business Entities and the Central Register of Beneficial Owners of companies and other legal entities.

Registrar of Companies and Intellectual Property Irene Mylona Chrysostomou said access to timely and reliable data is essential for investigating complex cases involving fraud, corruption, money laundering and misuse of EU funds.

The agreement, she said, will strengthen OLAF’s work and the capabilities of national authorities operating under the Anti-Fraud Coordination Service (AFCOS). It will also serve to reinforce Cyprus’ domestic system for preventing and combating fraud and underlines its commitment to transparency, accountability and good governance.

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Sovereign Group has completed the sale of Sovereign Insurance Services (SIS), its Gibraltar-based insurance brokerage, to Seventeen Group.

The transaction supports Sovereign’s continued strategic focus on its core international service lines and does not change its long-standing commitment to Gibraltar, where it was founded and where its global headquarters remain.

A new chapter for Sovereign Insurance Services

Sovereign Insurance Services has been part of Sovereign’s Gibraltar operations for a number of years, providing tailored insurance solutions to a wide range of private and corporate clients. The business has built a strong local reputation for its client service, technical expertise and long-standing relationships.

Following completion, SIS will continue its operations under Seventeen Group, bringing together an established Gibraltar team with the wider capabilities and specialist insurance expertise of the Seventeen Group.

Gerry Kelly, Chief Executive Officer of Sovereign Group, commented:

“Today marks an important milestone for both organisations. Sovereign Insurance Services has been a valued part of the Group, and we are pleased to see the business become part of Seventeen Group, a respected business with an excellent reputation and a strong commitment to client service.

“As Sovereign Group continues to evolve, we remain focused on the services that are at the heart of our business: wealth management, pensions, trusts, corporate services and tax advisory. This transaction allows us to concentrate our investment and expertise in these areas while ensuring that our insurance clients continue to receive outstanding support.

“Gibraltar remains central to Sovereign’s identity. It is where our business was founded, where our global headquarters remain today, and where we continue to invest in our people, our clients and our long-term future.”

Oliver Thorne, Chief Executive Officer of Seventeen Group, said:

“Our acquisitions of Senate and Sovereign Insurance Services demonstrate our confidence in Gibraltar and our ambition to build a significant insurance broking business here.

“Gibraltar has a strong insurance heritage, an established regulatory framework and a unique relationship with the UK market. Combined with the greater certainty provided by the Treaty, we believe there is a compelling opportunity to invest in and grow from Gibraltar.
“Our priority now is to bring the businesses together carefully, combining their local knowledge and client relationships with the resources, specialist capabilities and market access of James Hallam and the wider Seventeen Group.”

A continued commitment to Gibraltar

Sovereign Group remains firmly committed to Gibraltar, where it was founded in 1987 and where its global headquarters continue to be based. Today, the Group operates more than 20 offices worldwide and supports individuals, families and businesses with international wealth management, pensions, trusts, corporate services and tax advisory solutions.

Sovereign’s presence in Gibraltar remains a key part of its global network, with more than 100 colleagues based locally providing expertise across a broad range of international services.

A clear focus on core international services

This transaction reflects Sovereign’s continued focus on strengthening and investing in its core service lines, where it sees the greatest opportunity to support clients with increasingly complex cross-border needs.

Across these areas, Sovereign continues to expand its international footprint and enhance the depth of expertise available to clients globally.

Looking ahead

As Sovereign Group continues to evolve, its focus remains clear: delivering expert advice, long-term value and coordinated international solutions to clients around the world.

Sovereign Group thanks the SIS team and clients for their contribution to the business over many years and wishes them every success as they begin this next chapter with Seventeen Group.

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For many South Africans, offshore investments, companies and trust structures form an important part of their long-term financial planning. These structures are often established to facilitate international investment, protect family wealth, provide succession planning solutions, global diversification of assets, or support international business activities. While considerable time and effort are usually invested in designing and establishing an offshore structure, many individuals overlook an equally important aspect, which is ensuring the structure remains appropriate and effective over time.

An offshore structure should never be viewed as something to set up and forget about. Circumstances change, legislation evolves, and family and business objectives often shift significantly over the years. A structure that was perfectly suited to an individual’s needs when it was established may no longer deliver the same benefits or remain fully compliant in today’s regulatory environment. As a result, regular reviews have become an essential component of responsible offshore investing and wealth planning.

A well-conducted health check assesses whether the structure remains aligned with the personal circumstances, family dynamics, business interests, tax position, and long-term objectives. It also evaluates whether the structure is being properly administered, governed, and maintained in accordance with both local and international requirements.

With increased global transparency, information-sharing agreements between jurisdictions, beneficial ownership reporting obligations, and changing tax frameworks, ongoing reviews are no longer a best-practice exercise. They are increasingly becoming a necessity.

For South Africans with offshore structures, exchange control considerations should form part of any regular review. While many individuals focus on tax and investment performance, the movement of funds abroad between South Africa and offshore jurisdictions remains an important compliance consideration.

Failing to consider exchange control requirements can result in reporting discrepancies, delays in transactions, increased scrutiny from financial institutions, and potential regulatory complications.

A review should consider the source of funds used to establish or fund the structure, how funds have moved between South Africa and offshore jurisdictions, whether distributions have been appropriately reported, and whether future transactions remain aligned with current regulatory requirements.

Being mindful of exchange control helps ensure that offshore structures operate efficiently, that banking and investment arrangements remain sustainable, and that future wealth, succession, and investment portfolio planning can be implemented.

Regular reviews ensure that structures remain fit for purpose and continue to support the objectives for which they were originally established.

Certain events often indicate an immediate review such a change in tax residency, significant growth or changes in investment holdings or new business activities that differ from the original purpose.

The key question for offshore structures is no longer whether their structure was established correctly, but whether it continues to serve its intended purpose today. For offshore investment, South Africa typically favour offshore structures such as Mauritius, Guernsey, Isle of Man, Switzerland, UAE or even UK and Singapore, a review not only provides peace of mind but also helps identify risks, inefficiencies, and opportunities before they become costly, ensuring that offshore structures continue to protect and preserve wealth for future generations.

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For years, the shipping industry was warned that a shortage of qualified officers was on the way. That shortage has now arrived. According to the BIMCO and ICS Seafarer Workforce Report 2026, the global shipping industry will need an additional 113,735 officers by 2030 to operate the world merchant fleet, and is already facing a shortage of 39,100 STCW-certified officers in 2026. To bridge the gap, the industry will need to recruit an additional 22,747 officers and 8,475 ratings every year through 2030.

The cruise sector faces similar pressure. Global cruise passenger volume reached a record 37.2 million in 2025, and CLIA now projects 42 million passengers by 2028. In 2026, there will be 325 CLIA-member ocean-going ships, representing around 690,000 lower berths globally, and every one of those ships needs a skilled crew delivering high standards of service.

The yachting sector is smaller but equally competitive. Some 612 yachts are under construction across 142 shipyards in 29 countries, and the average length of yachts under construction has reached a historic high of 48.5 metres. Larger, more complex yachts require larger and more specialised crews, and owners expect excellence.

In every part of the industry, experienced officers, engineers and specialist crew can choose where they work. A new generation of seafarers is more mobile and more demanding, and is willing to move employer to find the right package. Salary alone is no longer enough to secure loyalty.

The retirement gap at sea

Many seafarers spend their working lives outside their home country’s pension system. They are often exempt from national onshore labour laws. The Maritime Labour Convention (MLC), which came into force in 2013, sets minimum standards for fair employment, decent working conditions and social protection, but it does not guarantee a retirement income. As a result, many long-serving crew members reach the end of their careers with little private provision.

Seafaring does offer a real opportunity to save. Living costs on board are low, and in the cruise and yachting sectors crew can also receive good bonuses and tips. With the right structure in place, time at sea can become time spent building long-term financial security.

Why maritime benefits are difficult to deliver

Employers in the merchant and cruise sectors manage workforces with diverse skills, responsibilities, salaries and nationalities, including many relatively low-paid roles. Crew are spread across fleets and vessels worldwide and typically work in rotations. Crewing companies and employers of record may also place seafarers with many different clients. Finding a provider willing and able to administer benefits across such a population, efficiently, has traditionally been a challenge.

How an international retirement and savings plan works

The Sovereign International Retirement and Savings Scheme is designed for internationally mobile workforces, including those working offshore or in countries without a recognised pensions framework. Plans are established in Guernsey, a well-regulated jurisdiction on the OECD white list. Benefits are paid gross of tax, there are no minimum or maximum limits on contributions, and payments can be made to non-residents without withholding tax, so members are generally taxed only in their country of residence when they receive their benefits.

This is a simple and effective way to break down barriers and gives seafarers the chance to invest in their future and save, via payroll, with global fund houses in stable hard currency. As a trust-based arrangement, the plan’s assets are legally separate from those of the employer, which gives members an added layer of security.

Maritime employers can structure a plan to include:

• A core employer contribution for all crew, which can vary by rank, contract or vessel and can be linked to time on board.
• Matched employee/employer contributions up to a set percentage.
• An enhanced contribution for officers, engineers and specialist ranks, helping to reward and retain the most sought-after talent.
• A vesting schedule, so crew earn the right to employer contributions after a specified length of service.
• A completion bonus, encouraging crew to complete their contracts.
• A voluntary savings element, allowing crew to save directly from payroll, with no minimum contribution, for life events such as a house or land purchase, a wedding, children’s education or retirement.

How this could work in practice

Consider a crew management company that places officers and ratings on merchant vessels for a range of clients, with crew working rotations of several months at sea.

Using the Sovereign International Retirement and Savings Scheme they can create a branded and tailored plan that will add value to their ship owner clients to deliver on their duty of care.

The benefit could include a set percentage, such as 2% of earnings paid into each seafarer’s member account whilst actively at sea, rising to 6% for officers and specialist ranks. Or they may decide to incentavise crew to save by putting in a match contribution. If a seafarer pays between 2-5% into the plan, then the shipowner will match it.

Employer contributions would vest once the seafarer completes 5 years’ service, giving the crew a clear reason to be loyal.

Seafarers can also save voluntarily from payroll to save for medium-term life time events. They can keep track of their account value online.

When a seafarer moves to a different vessel, they stay in the same plan, so their benefits remain consolidated and consistent. The crew management company adds value to their ship owner clients and their crew. They build a more stable, experienced workforce, which will enhance their reputation and the crew feel valued because the company is investing in their future.

Simple to implement and administer

Digital tools, including Application Programming Interfaces (APIs), make it quick and easy for employers to transfer data, and members have real-time online access to their accounts. Sovereign can work with a single central payroll or accept contributions from multiple pay-points into one plan. In most cases, the employer only needs to manage joiners, leavers and monthly contributions. Fees are fully transparent and can be paid by the employer, the employee or shared.

An international retirement and savings plan is a highly effective way for maritime employers to meet the recruitment challenges and stand out, retain experienced crew and deliver on their duty of care.

For further information or to get the process started, contact Jo Smeed below.

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The critical shortage of teachers is impacting the Education 2030 Framework for Action, according to a recent report by the United Nations Educational, Scientific and Cultural Organisation (UNESCO), which predicts a deficit of 44 million primary and secondary teachers worldwide by 2030.

Couple this with the explosive growth in international schools over recent years and the scale of the challenge in recruiting teachers of sufficient calibre and in sufficient numbers to deliver excellence soon becomes apparent. According to ISC Research’s Global International Schools Snapshot 2026, there are now 15,075 international schools worldwide, educating 7.7 million students, employing 730,000 staff and generating USD69.3 billion in annual fee income. Around 40% of these schools are now part of a school group.

Policy changes are adding to this momentum. Following the introduction of VAT on private school fees in the UK in January 2025, many British independent schools are expanding their presence overseas, , creating further demand for experienced teachers.

In such a competitive market, any international schools that have succeeded in attracting the best educators will need to be sure that they can also retain them, so they can build continuity and a positive culture.

The sector is increasingly turning to employee benefits to stand out from the crowd and go that ‘extra mile’ for their staff. An international school or group of schools that has a reputation for delivering excellent benefits to its personnel will be seen as an employer of choice across the sector.

This has not always been the case. Many long-serving teachers who are now approaching the end of their careers are realising that they have not accumulated adequate private retirement provision and have also not been paying into their home county’s state pension scheme. This means they have lost valuable time to secure their financial future and will therefore have to work much longer than anticipated.

The new generations coming into the workforce are more demanding. They are coming from a less accepting and more mobile environment, so their expectations have changed. They view working overseas as an opportunity to develop professionally, experience other cultures and lifestyles – and to save for their future. There is a growing trend that they are staying overseas and building their medium to long-term careers internationally. Due to the teacher shortage, they are also in a position to choose employers that offer them both fulfilment from a career perspective and in respect of their future financial independence.

To meet these recruitment challenges, international schools and groups are increasingly looking to occupational international pension and savings solutions, which have served as a well-established tool in other sectors. These solutions offer a simple, transparent and effective method to provide a meaningful benefit to staff whether they are local or expatriate, or on short-term or long-term contracts.

Schools can structure these plans to include:

• A sign-on bonus.
• A completion of contract bonus.
• A regular employer contribution that the employee can earn the rights to if they serve a specified length of time.
• A voluntary savings element, which is popular with staff because they can save easily and penalty-free from payroll for life events such as a house purchase, wedding or children’s education.

Contributions can also increase with length of service or seniority, rewarding loyalty and helping schools hold on to their talent. For subjects that are particularly hard to recruit, such as mathematics and science, schools can offer enhanced contributions to stand out at recruitment events.

To illustrate how this could work in practice, consider an international school group with several schools across different countries, employing a mix of local and expatriate teachers on two-year contracts.

The added advantage of an international plan, for groups of schools in particular, is that their staff can move around their global footprint while remaining in the same plan. This provides consistency and consolidated benefits for the employee and helps school groups to retain staff who want a long-term career and who understand and foster the group culture.

The good news is that an international plan is simple to implement and administer and is also transparent in terms of information and fees. The latter can be paid by the school, the employee or be shared, according to choice.

Sovereign’s international pensions and savings plans are a highly effective way to address staff recruitment and retention issues within the education sector. To better understand their potential impact on your business, please take a look at our schools’ case study here.

For further information or to get the process started, contact Jo Smeed below.

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Directors of UK companies are being warned to verify their identities with Companies House or risk prosecution after the Insolvency Service secured its first convictions for identity verification offences on 16 September.

Identity verification is a central part of the Economic Crime & Corporate Transparency Act 2023, which strengthened Companies House powers to improve the accuracy of the company register and tackle the misuse of UK companies for criminal purposes.

All company directors and People with Significant Control (PSCs) of UK companies, as well as anyone filing documents with Companies House, must prove who they are using a photo ID such as a passport. Failing to verify your identity or acting as an unverified director is a criminal offence.

Newly appointed directors have been required to verify their identity with Companies House before acting as a director from 18 November 2025.

Existing directors are required to verify during the 12-month transition period, when filing the company’s next confirmation statement, helping to ensure that those who own and control businesses can be identified and held accountable.

Three UK directors – Jill White and Marc Dillon, directors of White (Reading Properties) Limited, and Modinat Banjo, director of J Isogony Apparel Limited – were convicted and fined at City of London Magistrates’ Court.

White acted as a company director despite not verifying her identity. She participated in board-level decision making and signed company accounts while remaining unverified. She only completed identity verification in early September 2026, around nine months after the deadline and shortly before appearing in court.

Dillon had verified his own identity but was prosecuted after failing to take reasonable steps to prevent White from continuing to act as a director while unverified, despite being aware of the legal requirement. As a director of White (Reading Properties) Limited, he had a legal responsibility to ensure the company did not allow an unverified individual to continue acting as a director.

Both were also convicted after their company failed to file a confirmation statement on time. White was fined £166, ordered to pay costs of £85 and a victim surcharge of £66. Dillon was fined £307, with costs of £85 and a victim surcharge of £123.

Banjo continued acting as a director despite also failing to complete the mandatory identity verification process. She signed and delivered company accounts on behalf of J Isogony Apparel Limited while remaining unverified. She completed identity verification only on or around 28 May 2026.

Banjo was also convicted after failing to file a confirmation statement within the statutory period. She was fined £80, ordered to pay costs of £85 and a victim surcharge of £32.

“These prosecutions demonstrate that directors have responsibilities not only for their own compliance but also for ensuring unverified individuals do not continue acting as directors on behalf of a company,” said Daniel Hart, Senior Criminal Lawyer at the Insolvency Service.

“In both cases, multiple opportunities were provided for the directors to comply with the requirements before enforcement action was taken. There is no option to opt out. Directors who continue to act without verifying their identity risk investigation and prosecution.”

These cases send a clear message that identity verification is not optional. Where individuals acting as directors or people with significant control (PSCs) fail to meet their legal obligations to comply with the new requirements, Companies House will take enforcement action.

“Any UK company directors and PSCs who have not yet verified their identity should do so as soon as possible, or risk prosecution” said Jo Rocca, director of Chester-based Sovereign Corporate & Trustee Services in the UK. “Directors also have a duty to ensure that all their co-directors are properly verified to avoid committing an offence.”

Sovereign is registered with Companies House as an Authorised Corporate Service Provider (ACSP), which means it is officially endorsed to carry out identity verification (IDV) on behalf of directors and to file required documentation directly with Companies House. For UK company directors, this offers a straightforward route to staying compliant, without the administrative headache.

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Bahrain’s Parliament is considering a proposal that would change when suppliers to government bodies become liable to account for Value Added Tax (VAT). The proposal, submitted by MP Hassan Ebrahim and four other members of Parliament, is being reviewed by Parliament’s Financial and Economic Affairs Committee and would allow VAT to be accounted for when payment is received rather than when an tax invoice is issued.

According to the explanatory memorandum, suppliers to government entities can wait between three and six months for payment and, in some cases, for more than a year. During that time, they may still be required to account for VAT under the existing rules, despite not having received the funds from the customer.

Why the change has been proposed

The MPs behind the proposal argue that delayed government payments can place unnecessary pressure on suppliers, particularly where businesses are managing several public sector contracts at the same time. While invoices remain unpaid, businesses may still have to meet their VAT obligations, effectively funding the tax from their own resources.

The proposal is intended to address that timing issue by allowing VAT to be accounted for only once payment has been received. According to the explanatory memorandum, the change would improve liquidity for suppliers while supporting a fairer approach to the timing of VAT payments.

Under Bahrain’s existing VAT framework, businesses can become liable for VAT before they receive payment from a customer. For suppliers working with government bodies, where payment may be delayed by approval procedures or administrative processes, this can create a gap between settling the VAT liability and receiving the corresponding income.

The proposal would not change the amount of VAT payable. It affects only when that VAT would become due for qualifying supplies made to government entities.

The proposal remains under consideration by Parliament’s Financial and Economic Affairs Committee and has not yet been enacted. No implementation date has been announced.

If approved by Parliament and published in the Official Gazette, the amendment would come into force on the following day. Until then, businesses supplying government entities must continue applying Bahrain’s existing VAT legislation and filing requirements.

The published proposal does not indicate that the amendment would apply beyond supplies made to government bodies, nor does it introduce any contract value threshold. Further detail may emerge as the legislation progresses through Parliament.

Although the proposal is limited to government contracts, it addresses an issue that has been raised by suppliers for some time. Payment delays of several months can affect liquidity, particularly for businesses that depend on regular cash flow to fund day-to-day operations or manage multiple public sector projects.

If enacted, the amendment would change the timing of VAT for qualifying government supplies without altering the underlying tax liability. For businesses that regularly contract with ministries and other government bodies, it could remove one of the funding pressures associated with extended payment cycles.

“The proposal recognises a practical issue that many businesses supplying the public sector will already be familiar with. Although it remains under parliamentary consideration and the current VAT rules continue to apply, it is a positive indication that the operational impact of payment timing is being considered as part of Bahrain’s developing VAT framework”

For further VAT, accounting or bookkeeping services in Bahrain, please contact us.

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Sovereign PPG, the UAE’s leading business formation and corporate services provider, has secured a licence to operate within the Qatar Financial Centre (QFC), further expanding its footprint across the country. This milestone reinforces Sovereign PPG’s position as a trusted partner for investors, family offices and multinational corporations seeking regional and cross-border opportunities.

Through its dedicated Qatar Financial Centre entity, Sovereign PPG offers clients a versatile corporate platform, ideal for holding structures, regional headquarters or service-based entities. The licence provides 100% foreign ownership, streamlined compliance and access to Qatar’s expanding network of double tax treaties. The QFC also offers an internationally aligned legal and regulatory framework, enhancing Sovereign PPG’s ability to structure cross-border mandates efficiently.

Importantly, the new licence enables Sovereign PPG to support multi-jurisdictional strategies across the Gulf states, with the Qatar Financial Centre serving as a central hub for regional expansion. Companies increasingly base their regulated and governance functions in Qatar – benefiting from the QFC’s internationally aligned framework, legal certainty and flexible environment – while developing commercial relationships in other GCC markets.

Sovereign PPG provides the mandatory QFC functions, including Senior Executive Function (SEF), compliance oversight, substance and corporate governance and company secretarial support, ensuring clients remain fully compliant as they scale regionally.

“The QFC licence provides a robust, internationally aligned framework, allowing us to structure cross-border advisory, consulting and corporate services efficiently,” said Neil Wilson, Managing Director Sovereign PPG Qatar. “It strengthens our ability to support clients establishing a regulatory base in Qatar while expanding across the Gulf.”

Operating dual structures through both the Ministry of Commerce & Industry (MOCI) and the Qatar Financial Centre gives Sovereign PPG flexibility to meet diverse client needs. Whether clients require on-the-ground operational capabilities under the MOCI domestic commercial regime, or a more agile platform for international transactions, holding structures or advisory mandates within the QFC, Sovereign PPG provides a full spectrum solution.

“Our presence in the QFC allows us to deliver legal certainty for cross-border structuring, investment vehicles and advisory operations, all within a business-friendly environment that is aligned with global best practices,” said Wilson. “For clients operating across the Gulf, Qatar serves as a strong regulatory home, as we support their journey from establishment through to regional and global growth.”

Sovereign PPG’s expansion in Qatar comes at a pivotal time as the country pursues a set of ambitious targets to be achieved by 2030 under the Third National Development Strategy (NDS3), including an average economic growth of 4%, the attraction of USD100 billion in foreign direct investment, and the establishment of Qatar as a frontrunner in business environment and digital competitiveness.

Within the context of NDS3, the Qatar Financial Centre offers a compelling platform for international clients, with key benefits including a flat 10% corporate tax rate on locally-sourced profits and 100% repatriation of profits, dividends, interest, royalties and management fees. These advantages underpin the value Sovereign PPG can bring to clients seeking to establish or grow their operations across the Gulf.

Leveraging its deep experience across multiple GCC jurisdictions – including Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM), and mainland structures – Sovereign PPG is uniquely positioned to guide clients through the legal, regulatory and operational complexities of the region.

“For international clients looking to establish a presence in the Gulf, the Qatar Financial Centre offers a familiar and flexible legal environment,” added Wilson. “We help navigate the set-up process end-to-end, ensuring their structure is compliant, tax-efficient and scalable.”

More than 15% of all Sovereign PPG’s regional formation and set-up enquiries are linked specifically to one of the three key financial centres – Dubai International Financial Centre (DIFC), Abu Dhabi Global Market (ADGM) or Qatar Financial Centre (QFC) – demonstrating strong demand for well-regulated jurisdictions with international standards and investor protections. Given this trend, adding the QFC to Sovereign PPG’s regional footprint was a natural and strategic next step.

With its new Qatar Financial Centre licence, Sovereign PPG strengthens the comprehensive suite of solutions it offers entrepreneurs, international companies, family offices and high-net-worth individuals in seeking to realise both regional and global ambitions.

To learn more about Sovereign PPG’s professional and business services in Qatar, including Qatar Financial Centre (QFC) company registration, assistance with the right legal structure as well as its wider GCC offering in company formation, structuring and compliance, visit www.sovereigngroup.com/middle-east.

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