From the world’s tallest tower to a man-made, palm tree-shaped archipelago, Dubai never fails to enchant and amaze. This is true not only for ex-pats looking to live and work in Dubai but also for a growing number of investors who are becoming increasingly interested in dipping their toes in Dubai’s property market. As one of the fastest-growing cities in the world, Dubai boasts a thriving economy, an unrivalled property portfolio and some of the best returns on property investment. The city’s real estate market has boomed because of the massive inflow of businesses and industries. This has left many business-savvy individuals eager to become real estate brokers. This article will walk you through the process of becoming a Real Estate Agent and thriving in Dubai’s Real Estate Industry.

The United Arab Emirates is a country of laws. Immigration, work permits, and visas are all governed by these regulations. Visitors from other countries will require a valid visa to work in the UAE. This problem may be solved using two primary methods. Both of these methods are based on the principles of sponsorship. To begin, you can obtain a visa through your business. Your company will sponsor you as the company’s employee. This will provide you with permission to work and remain in Dubai. For those of you lucky enough to have a UAE citizen or resident as a spouse, use the 2nd method. Spousal or Family Visas are Visas in which your spouse serves as your sponsor. These Visas allow foreigners to work and live in the UAE. After you’ve got your visa, all you have to do now is apply for and receive an Emirates ID. You may finally start the process of a fully licensed real estate broker in Dubai once you’ve completed this official process.

Once your residency visa is ready, it is time to sign up for training with the Dubai Real Estate Institute (DREI). The four-day course known as Certified Training for Real Estate Brokers aims to give the necessary insight into the city’s real estate industry.

This course is approved by the Real Estate Regulatory Agency (RERA), which is the regulatory arm of the Dubai Land Department (DLD. The various modules covered in this course include:

• The evolution of Dubai’s real estate market through time In Dubai.
• Dynamics of the industry, ideas, jargon, terminology, and important market players
• Legal agreements, as well as sales and procurement processes
• Legal documents pertaining to property leasing and rentals
• Real estate agents’ ethical norms of conduct and behaviour
• An overview of Several Owners’ Associations
• Real estate law in general
• Additional fundamental talents required to function as a good broker

Classes can be taken either online or at the RERA agent registration training centre at DLD.

Details are given below:
Location: Dubai Land Department, Baniyas Road, Deira
Timings: Sunday to Thursday – 07:30 a.m. to 02:30 p.m.
Contact: +971-4-203-0456
Cost: AED 3000

After passing the 4-day DREI course, the next step toward becoming a broker in Dubai is the written Real Estate Regulatory Agency (RERA) Test. The following steps need to be followed in preparation for appearing for the exam.

1. Check your eligibility – As with most exams, you must check if you are qualified to sit for the RERA exam. When it comes to the RERA exam, the requirements you need to qualify are straightforward: you must have finished high school at least and passed a background check.
2. Register with the Dubai Land Department –  Once you make sure you are eligible to take the course, you should register with DLD, the Dubai Land Department. Registering there will grant you a unique user ID.
3. Submit your required documents after getting your ID –  ensure you have all the documents ready. You will need a copy of your high school certificate, or equivalent, a copy of your passport and Emirate ID, and a new passport-size photo.
4. Pay the examination fees – For persons having a bachelor’s degree from a university, the test price has been cut to 3,200 AED (872 USD). You may still take the test if you do not have a bachelor’s degree, but it will cost you extra money: 6,300 AED (1715 USD).

Once you’ve enrolled, paid the needed fees, and submitted all applicable documentation. It is now time to begin studying and preparing for the exam. To ensure your exam success, you should prepare the following:

The regulations and laws of real estate in Dubai

As mentioned, this exam aims to test your understanding of Dubai’s real estate rules and regulations. To demonstrate such knowledge, you must review the latest regulations, especially those related to property registration, transactions, and disputes. Having a good understanding of the rules and regulations will be of great benefit to you. Your work as a real estate agent will focus on all such factors.

The  market of real estate

Viewing the latest trends in the real estate markets is also essential. What we mean by that is to familiarize yourself with the types of properties available at the time and their prices. Moreover, get a general idea about the factors that affect the market and the likely and potential future trends.

The ethical practices of real estate

Understanding the real estate agent code of conduct is essential. Study the guidelines for advertising to clients, providing them with information, and the rules for handling client money.

Basic financial concepts

It would be best if you were thorough with the basics of property pricing, mortgages, property appraisals, and other financial concepts in this industry. It would help if you prepared well for this, as the exam will ask questions about all these issues.

The provisions of the Real Estate Regulation and Development Act (RERA):

Understanding RERA’s goals and guiding principles, the duties and rights of diverse stakeholders, and the authority and responsibility of the RERA authorities are all part of this.

After passing the RERA exam, there is just one more step to becoming a fully certified and licensed broker in Dubai. If you have a clean criminal record, this will be the easiest and fastest method. You only need to hand in your DREI course completion certificate, proof that you passed the RERA exam, and a certificate of good behaviour to the economic department. Upon the submission of these papers, the Economic Department will accept you and grant you a Broker’s License within a few days. Remember that this license is not perpetual and must be renewed on a regular basis. The renewal procedure must be started one month before your broker’s license expiration date. The RERA test has to be taken again and passed with an 85% or higher score. keep in mind, that if you don’t start the renewal procedure one month before your license expires, you might not have enough time to finish it. As a result, you may face penalties such as fines or you might have to repeat the DREI course.  

Once you have redone and passed the test, the renewal process can simply be completed online by providing these relevant documents:

• Valid Passport and/or Residency Permit (while not necessary, it’s always good practice to provide both)
• Personal Photo
• Broker’s License Certification
• The renewal fee is 510 AED (roughly 140 USD)

The real estate market in Dubai has been recognized as the most transparent in the Middle East and North Africa. The market is currently at an all-time high, with no indications of decline. The Federal government is promoting market openness through new and improved programs and legislation. Investors appreciate Dubai owing to the economy’s ongoing expansion and stability. Being the Middle East’s tourism and business centre, it boasts one of the most diverse economies, receiving a huge amount of international investment each year. It should come as no surprise that Dubai recently ranked first in terms of attracting foreign direct investment projects. Aside from these, exceptional living standards, safety, strategic position, tax-free income, and world-class infrastructure are the reasons why Dubai has become one of the world’s most active cities, attracting investors from all over the world. These elements generate a profusion of chances for property investors eager to capitalize on Dubai’s thriving real estate market.

This article’s material should not be construed as legal advice. Hassan Al Reyami Attorneys and legal experts are happy to answer your questions during a 30-minute free legal consultation session that is being given to you if you are facing any issues pertaining to the following subject or have any other inquiries.

The United Arab Emirates (UAE) is a popular place for foreign investors to set up a business. With its strategic location, world-class infrastructure, and business-friendly environment, the UAE provides a variety of options for companies seeking to establish a presence in the region. Choosing the right type of business setup and location is a critical consideration for companies seeking to establish themselves in the UAE. This article will provide an overview of the various kinds of business setups available in the UAE, the advantages of establishing a company in a free zone, and the best free zone in the UAE for business setup in 2023.

The UAE offers several types of business setups for entrepreneurs to choose from.

 Limited Liability Companies (LCCs) are a common form of business setup in the UAE. They necessitate the participation of at least two shareholders and provide restricted liability for the company’s debts and losses. LLCs offer a great deal of flexibility in terms of the business activities they can engage in, making them an appealing choice for entrepreneurs seeking to start a business in the UAE. On the other hand, LCCs must have a UAE national who owns at least 51% of the shares. This can be a disadvantage for foreign investors seeking greater influence over their operations.

 A 100%-owned Civil Liability Company (CLC) is another type of business setup in the UAE. It allows foreign investors to obtain full ownership of their business without the need for a local partner or sponsor. CLCs are typically owned by lawyers, engineers, and consultants, who must own 100% of their business in order to run a legal entity in the UAE.

 A sole proprietorship is another form of business setup in the UAE. It is the most basic form of business ownership, with a single person owning and managing the business. The owner has unlimited liability for the company’s debts and liabilities, putting their personal assets at risk. Sole proprietorship is appropriate for small businesses and individuals who want to establish their own business without undergoing any complicated legal requirements.

 Another form of business setup is a partnership, which requires two or more people to share ownership and attend to the responsibilities. In the UAE, there are two types of partnerships: general partnerships and limited partnerships.

 In a general partnership, all partners share earnings and losses equally and have unlimited liability for the company’s debts and losses.

In a limited partnership, one or more partners have limited liability and are not involved in the general operations of the business.

Partnerships are appropriate for businesses that require more than one person to run the operations, and they provide partners with shared responsibility and accountability.

In the UAE, free zones are designated areas that provide guaranteed 100% foreign ownership, tax incentives, and other exemptions to businesses. The UAE has over 67 free zones, and each has its own focus and facilities. Businesses in sectors such as finance, logistics, media, and technology prefer free zones.

 Some of the most famous free zones in the UAE are:

 Dubai Multi Commodities Centre (DMCC)

• Dubai Silicon Oasis (DSO)
• Abu Dhabi Global Market (ADGM)
• Jebel Ali Free Zone Authority (JAFZA)
• International Free Zone Authority (IFZA)
• Fujairah Creative City Free Zone
• Sharjah Media City Free Zone (Shams)
• and the Ras Al Khaimah Economic Zone (RAKEZ).

 Businesses that establish themselves in a free zone can take advantage of world-class infrastructure, access to global marketplaces, and streamlined registration procedures.

There are several benefits to setting up a business in the UAE and free zones. For instance, the UAE is strategically located between Asia, Europe, and Africa, making it ideal for businesses looking to expand globally.

Most free zones in the UAE offer tax incentives, such as zero corporate tax and zero personal income tax. This is attractive to businesses looking to save on taxes.

 The UAE also has a pro-business environment, with streamlined registration processes for businesses, minimal entry barriers, and a supportive government that encourages entrepreneurship and innovation.

 The UAE’s world-class infrastructure affirms its attraction to businesses as it has premium facilities, including airports, seaports, transportation systems, modern office spaces, and logistic centers.

 The UAE also has an open economy and a strong dedication to free trade and globalization. This facilitates a business’s ability to import and export goods, as well as gain entry to new markets and customers.

 Finally, the free zones in the UAE offer numerous benefits, as mentioned. These benefits can facilitate a business setup and make the operation more cost-effective. Each free zone has its own benefits. Thus, businesses should carefully consider which free zone suits their needs and aims for growth.

In 2023, the best free zone for a business setup in the UAE will depend on specific criteria consisting of the needs and requirements of the business. However, based on current trends and facilities, DMCC proves to be the most appropriate so far. DMCC has been named the world’s number one free zone by the Financial Times fDi Magazine. It is the world’s largest free zone for commodities trading, and it provides a variety of services, including serviced offices, warehouses, and trading platforms. DMCC is one of the few free zones to offer a dual license, enabling businesses to expand onshore or on the mainland. DMCC also houses over 18,000 businesses from various sectors, making it a hub for business networking and collaboration. Furthermore, DMCC provides several company incentives, such as exemptions from taxes, 100% foreign ownership, and simplified registration procedures.

 IFZA is also growing in popularity as it is one of the most economically free zones in the UAE. A unique feature of IFZA is that one does not need to have a physical office space, making it ideal for those looking to start online. This is entirely suitable for the present year, as online presence is an area that is expanding each day.

 Another free zone that is growing in popularity in the UAE is ADGM. ADGM is an international financial center that provides a broad range of financial services, such as banking, insurance, and asset management. ADGM is also home to several fintech firms, making it a financial innovation hotspot. ADGM provides incentives such as exemptions from taxes, 100% foreign ownership, and a regulatory framework founded on international best practices. There are also other UAE free zones to consider when setting up a business in 2023, such as Dubai South, Dubai Internet City, and Dubai Media City.

It is crucial for businesses that establish themselves in the UAE or a free zone to be conscious of the legal implications of their operations. Among these are labor laws and regulations, commercial laws, employment laws, and other legal factors such as data protection and intellectual property. For instance, the UAE Commercial Companies Law (CCL) establishes free zones in the UAE, along with the regulations surrounding them. The CCL sets out the formation of free zones, licensing, ownership, tax incentives, customs regulations, and employment regulations. Nevertheless, a business should obtain professional legal advice to guarantee compliance with applicable laws and regulations.

For foreign investors seeking to establish a presence in the region, the UAE provides a variety of business setups and free zones. Businesses can profit from tax exemptions, 100% foreign ownership, and access to global markets in free zones. The specific needs and requirements of the business determine the best free zone in the UAE for company setup in 2023. Still, the Dubai Multi Commodities Center (DMCC) and the International Free Zone Authority (IFZA) are two of the most popular and most suitable free zones in the UAE for business setups. However, Abu Dhabi Global Market (ADGM) has also grown in popularity and status due to it being a financial innovation hotspot. Businesses considering establishing a presence in the UAE should obtain professional legal counsel to guarantee compliance with all applicable laws and regulations.

It should be noted that this article should not be considered expert legal advice. If you would like to obtain any legal advice regarding business setups or financial free zones, please do not hesitate to contact us. We offer a 30-minute free consultation with the legal counsel at our firm, Al Reyami Advocates and Muhyealdeen International Legal Consultants.

The UAE’s gradual ascension towards becoming one of the leading countries in trade, commerce and the movement of capital increased the threat of the commission of financial crimes in the UAE. Taking into consideration such risks, the Emirati legislator attributed serious attention to legislation that counters money laundry, financing of terrorism and financing of illegal organizations. The following was elaborated and curated gradually to effectively hinder any attempts of money laundering, financing of terrorism and illegal organizations within the Emirati territory.

Legislations that criminalize the possession or concealment of funds resulting from criminally prohibited acts existed in the Penal law issued in 1987, yet the combat against money laundry necessitated legislation dedicated solely to the matter, therefore the Emirati legislator created the first legislation that criminalizes money laundering in 2002 and the following was amended in 2014. Ever since, federal law no.(4) issued in 2002 played a pivotal role in the combat against money laundering, the financing of terrorism and the financing of illegal organizations.

In 2018, the law dating to 2002 and amended in 2014 has been replaced. The Emirati legislator has unified the special procedures to counter money laundering and the financing of terrorism by applying a unified legal framework to counter money laundering and the financing of terrorism in all Emirates, Free trade zones and Free financial zones in the UAE and the following has been put in place as per the Cabinet resolution no. (10) issued in 2019 concerning the Executive Regulations of Federal Decree law No.(20) of 2018 on Anti- Money Laundering and Combatting the Financing of Terrorism and Illegal Organizations.

The current laws combatting Anti-money laundering and the Financing of terrorism cover the recommendations issued in the years 2012 and 2013 by the Financial Action Task Force (FATF) an inter-governmental organization whose objective is to counter money laundering and the financing of terrorism globally by setting international standards that adherent countries need to follow to participate successfully and proactively in the combat against money laundering and the financing of terrorism on a global scope.

• Effectively counter Money Laundering, the Financing of Terrorism, and Illegal organizations 
• Create a legal framework that enhances the efforts made by authorities in the UAE involved in the combat against Money Laundering and crimes in relation to it.

According to the Decree-Law one is considered a perpetrator of money laundering if they commit the
following acts:

1. Being knowledgeable of the fact that the funds proceed with a felony or a
   misdemeanour.
2. Willfully commits any of the following acts:
   • Transferring or moving proceeds
   • Conducting any transaction with the aim of concealing or disguising their illegal
     source
   • Acquiring possessing or using proceeds upon receipt
   • Assisting the perpetrator of the offense to escape punishment.

2-The crime of Money Laundering is considered as an independent crime. The punishment of the
perpetrator for the predicate offence shall not prevent his punishment for the crime of Money
Laundering.

3- Proving the illicit source of the proceeds should not constitute a prerequisite to sentencing the
perpetrator of the predicate offence.

As per the Decree-Law any person who commits or attempts to commit any of the aforementioned acts:

• • Shall be sentenced to imprisonment for a period not exceeding ten years and to a fine of no less than (100,000) AED one hundred thousand and not exceeding (5,000,000) AED five Million or either one of these two penalties.
  • A temporary imprisonment and a fine of no less than AED 300,000 (three hundred
    thousand dirham) and no more than AED 10,000,000 (ten million dirham) shall be applied
    if the perpetrator of a money laundering crime commits any of the following acts:
    a) If he abuses his influence or the power granted to him by his profession or professional
    activities.
    b) If the crime is committed through a non-profit organization.c) If the crime is committed through an organized crime group.
    d) In case of Recidivism

In addition, the Decree-Law stipulates that an attempt to commit a money laundering offense shall be punishable by the full penalty prescribed for it.

According to the Decree-Law one is found guilty of Financing of Terrorism if they intentionally commit the following acts:

• Being knowledgeable that the proceeds are wholly or partly owned by a terrorist organization or a terrorist person.
• Intended to finance a terrorist organization, a terrorist person or a terrorism crime, even if it without the intention to conceal or disguise their illicit origin.
• Providing, collecting, or preparing or obtaining proceeds or facilitating their obtainment by others with intent to use them or while knowing that such proceeds will be used in whole or in part for the commitment of a terrorist offense or if he has committed such acts on behalf of a terrorist organization or a terrorist person while aware of their true background or purpose.

The punishment of Financing of Terrorism as per the Decree-Law is A life imprisonment sanction or temporary imprisonment of no less than (10) ten years and penalty of no less than AED 300,000 (three hundred thousand dirham) and no more than AED 10,000,000 (ten million dirham) is applied to anyone who uses Proceeds for terrorist financing.

According to the Decree-law is found guilty of financing of illegal organizations if they the commit the following acts:

• If he is aware that the proceeds are wholly or partly owned by an illegal organization or by any person belonging to an illegal organization or intended to finance such illegal organization or any person belonging to it, even if without the intention to conceal or disguise their illicit origin.
• Providing, collecting, preparing, obtaining Proceeds or facilitating their obtainment by others with intent to use such proceeds, or while knowing that such proceeds will be used in whole or in part for the benefit of an Illegal organization or of any of its members, with knowledge of its true identity or purpose.

Financing illegal organizations punishment

As per the Decree-Law the punishment of financing illegal organizations is a temporary imprisonment sanction and a penalty of no less than AED 300,000 (three hundred thousand dirham) shall be applicable to anyone who uses the Proceeds in financing illegal organizations.

The Decree-Law as well specifies that The Court may commute or exempt from the sentence imposed on the offenders if they provide the judicialor administrative authorities with information relating to any of the offenses punishable in this article, whenthis leads to the disclosure, prosecution, or arrest of the perpetrators.

The following stipulations apply to all the financial crimes within the Decree-Law:

1- A penalty of no less than AED 500,000 (five hundred thousand) and no more than AED 50,000,000 (fifty

million dirham) shall apply to any legal person whose representatives or managers or agents commit for its  account or its name any of the crimes mentioned in this Decree-Law.

2- If the legal person is convicted with terrorism financing crime, the court will order its dissolution and closure of its offices where its activity is performed.

3- Upon issuance of the indictment, the court shall order the publishing of a summary of the judgment by the appropriate means at the expense of condemned party.

Imprisonment and a fine of no less than AED 100,000 (one hundred thousand) and no more than AED 1,000,000(One million dirham) or any of those two sanctions is applied to anyone who violates on purpose or by grossnegligence the provision Article (15) of this Decree Law.

Imprisonment for no less than six months and a penalty of no less than AED 100,000 (one hundred thousand dirham) and no more than AED 500,000 (five hundred thousand dirham) or any of these two sanctions shall apply to anyone who notifies or warns a person or reveals any transaction under review in relation to suspicious transactions or being investigated by the competent authorities.

As the UAE takes its role in combatting financial crimes seriously, specialized authorities have the role of taking preventive measures and ensure the application of the legislation to effectively hinder financial crimes in the UAE.The most important in the matter is the Financial Intelligence Unit (FIU).

The Decree-Law in order to effectively prevent the commission of financial crimes in its territory has attributed to the Central Bank of the UAE (CBUAE) the task of creating an independent authority under the name of “Financial Intelligence Unit”, the following authority has for a role the receipt of suspicious transaction reports, information on all financial institutions and designated nonfinancial businesses (DNFBs) and professions shall be sent exclusively for consideration, analysis and referral to competent authorities either automatically or upon request.

The extension of legal obligations to DNFBs is the result of the development of the current contemporary financial system and financial activities, the following has attributed more importance to non-financial sectors. As a result, in the past recent years the FATF has taken this menace into consideration by issuing various recommendations related to the matter. The following create obligations for the DNFBs that requires the need of the implementation of preventive measures that will eventually hinder any activities characterized as money-laundering, financing of terrorism and illegal organizations of being committed. The DNFBs incase if they are presented by risks need to immediately identify, assess, and implement preventive measures tostop any crimes of being committed through them.

In addition, a key requirement imposed by the recommendations of the FATF on Financial Institutions and DNFBPs is performing what is labelled as Customer Due Diligence (CDD) with new clients. The CDD consists of the receipt of different information from the new client to clearly identify them, for instance whether they are an individual or an entity and the information requested mostly revolves around key elements that would pose eventual risks. The FIs and the DNFBs are as well required to maintain a record in which alltheir carried-out transactions with clients are listed and make sure that the following information is ready to be shared if demanded by competent authorities in the case of an investigation. In addition, FIs and DNFBs must immediately report the occurrence of any suspicious transactions.

However, as the FIs were already subjected to strict regulations, perpetrators of financial crimes have opted to DNFBs to proceed with their illegal activities. As a result, the UAE has taken the required legal actions and extended certain number of obligations present in the Decree-Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations with the objective of hindering the illicit flow of funds through them.

As a response, in March 2020 the Ministry of Economy of the UAE has issued a circular related to the AML/CFT regulations of DNFBs, the following was done in order to take into consideration of the FATF’s recommendation addressed to the UAE within the UAE Mutual Evaluation Report (MER) that has been published by the FATF illustrating the observations that it has been able to gather as of the on-site evaluation it has made regarding the respect and effective application of its legislation.

The FATF as per the MER urged the UAE given its status as one of the leading international global and financial centers to impose obligations on DNFBs as it is facing major risks as of it’s important presence in financial, economic, corporate and trade activities and its status as one of the leading countries in oil, diamond and gold exports, and given its location geographically between countries that pose elevated threat in addition to its free zones both financial and commercial.

Article 3 of Cabinet Resolution No. (10) of 2019 Concerning the Implementation of the AML Law (Implementing    Regulations) defines DNFBs and their scope of activity.

As per the implementing regulations activities involving DNFBs encompass:

• The sale and purchase of real estate
• Dealers in precious metals and precious stones
• Trust and company service providers
• Auditors
• Accounting service providers and lawyers

 FIs and DNFBs are two distinct actors each vested with different scope of activities, yet they share certain similarities, the principal is that they both carry out financial transactions for the benefit of their clients and the following is usually used to not shed the light on the real end beneficiaries or the real source of the funds.

DNFBs can be used a tool to facilitate money-laundering, financing of terrorism and illegal organizations and overall result in negative repercussions in the financial system on an international level and encourage the persistence of financial crimes. For instance, a DNFB actor such as precious stones dealers could possibly participate in money laundering by conducting a transaction that involves the sale of precious stones to a criminal who has acquired his funds illicitly.

As the following poses great risks in the combat against financial crimes, the UAE took the necessary measures to counter such activities.

The Circular has extended the application of the Federal AML Law No. (20) 2018 and its executive regulations on DNFBs.However, the most crucial obligation that DNFBs must abide to is the reporting of any suspicious transactions (STR) to competent supervisory authorities for the latter to detect any potential risks and implement effective preventive measures accordingly. The following however does not apply to professions that are needed to legally respect confidentiality such as lawyers and notaries.

a) Identify the crime risks within its scope of work as well as continuously assess, document, and update such assessment based on the various risk factors established in the Implementing Regulation of this Decree-Law and maintain a risk identification and assessment analysis with its supporting data to be provided to the Supervisory Authority upon request.

b) Take the necessary due diligence measures and procedures and define their scope, taking into account thevarious risk factors and the results of the national risk assessment and retain the records received during the implementation of this process. The Implementing Regulation of the present Decree-Law shall specify. the cases in which such procedures and measures are applied, and the conditions for deferring the completion of customer or real beneficiary identity verification.

c) Refrain from opening or conducting any financial or commercial transaction under an anonymous or fictitious name or by pseudonym or number and maintaining a relationship or providing any services to it.

d) Develop internal policies, controls and procedures approved by senior management to enable them to manage the risks identified and mitigate them, and to review and update them continuously, and apply this to all subsidiaries and affiliates in which they hold a majority stake; the Implementing Regulations of this. Decree-Law shall specify what should be included in said policies, controls and procedures.

e) Prompt application of the directives when issued by the competent authorities in the state for implementing the decisions issued by the UN Security Council under Chapter (7) of UN Convention for the Prohibition and Suppression of the Financing of Terrorism and Proliferation of weapons of mass destruction, and other related directives. Maintain all records, documents, and data for all transactions, whether local or international, and make this information available to the competent authorities promptly upon request, as stipulated in the Implementing. Regulation of this Decree-Law.

g) Any other obligations stipulated in the Implementing Regulation of this Decree-Law.

As per the Decree-Law FIs and DNFBs are subjected to the following in case of breach to their legal obligations:

1- The Supervisory authority shall impose the following administrative penalties on the financial institutions, designated nonfinancial businesses and professions and non-profit organisations in case they violate the present Decree-Law and its Implementing Regulation:

a) Warning

b) administrative penalties of no less than AED 50,000 (fifty thousand dirham) and no more than AED 5,000,000 (five million dirham) for each violation.

c) Banning the violator from working in the sector related to the violation for the period determined by the supervisory authority.

d) Constraining the powers of the Board of Directors, supervisory or executive management members, managers or owners who are proven to be responsible of the violation including the appointment of temporary inspector.

e) Suspending Managers, Board of Directors, and supervisory and executive management members who are proven to be responsible of the violation for a period to be determined by the Supervisory Authority or request their removal.

f) Suspend or restrict the activity or the profession for a period to be determined by the supervisory authority

g) Cancel the License.

 The content of this article should not be taken as legal consultation. In case you are involved in any problems related to the following subject or have any queries, Hassan Al Reyami Advocates and legal consultants would be delighted to address your concerns during a 30-minute free legal consultation session offered to you.

This article will address the extradition procedures in the UAE along with the legal framework surrounding it. The process of extradition shall be highlighted with the addition of several exceptions or defences. Successful extradition procedures that the UAE has been involved in will also be evident.

Extradition is a legal procedure in which one country surrenders a person to another country, to face trial or punishment for crimes that they committed within the requesting country’s jurisdiction. The significance of extradition lies in the basis that governments are able to corporate with each other regarding the prosecution of criminals who flee a country to evade justice.

The UAE has made itself extremely familiar with extradition procedures, as they have extradition treaties with numerous countries such as the United Kingdom, Pakistan, India, China, France, and South Africa. Each of these treaties grounds the legal framework for extradition between the UAE and the relevant country.

In the United Arab Emirates (UAE), extradition procedures are governed by the UAE’s “Extradition Law”, Federal Law No. 39 of 2006 on Mutual Judicial Cooperation in Criminal Matters. This law sets out the procedures for extradition and outlines certain conditions under which a person may be extradited in the UAE.

Step one: Article 11 of the UAE’s Extradition Law specifies that the requesting country must make any request for extradition through diplomatic channels to the appropriate department.

Step two: The requests are prepared and sent by the International Co-operation Department of the Public Prosecution, who ensures the request is sent under the conditions set out in the law.

For instance, the request must include all necessary information and documents, such as the name and physical description of the individual, legal provisions applicable to the offence, the potential penalty, and, if the individual has already been convicted, the relevant judgment and evidence of its enforceability. The department also ensures that the documents are appropriately translated into the language of the requested country.

Article 7 of the Extradition Law outlines the prerequisites for extradition:

• The offence must be punishable under the laws of both the UAE and the requesting country, with a minimum penalty of one year. 
• If the extradition is for serving a prison sentence, the remaining duration of the sentence should be at least six months.
• As long as the offense for which extradition is requested is considered punishable under the laws of both the requesting state and the UAE, it does not matter if the offense is referred to by a different name, description, or if the elements of the offense are different.

1. UAE citizenship: if the person is a UAE national, the court will refuse extradition under the law.
2. Jurisdiction: if the legal regulations in a state define the competent judicial entities that have jurisdiction over the offense for which the surrender of individuals is being requested.
3. Political offences: Extradition can be denied for offences that are considered political in nature such as war crimes, terrorism, genocide, treason etc. 
4. Military offences: If the extradition request relates solely to offenses related to military obligations.
5. Prejudice: Prejudice against ethnicity or religious beliefs, nationality and political affiliations.
6. Already tried: If the requested person has already undergone investigation or trial procedures in the UAE for the same crime for which extradition is being requested.
7. Termination or time limitation: If the criminal lawsuit has been terminated or if the sentence has been forfeited due to time limitation at the time of submitting the extradition request. 
8. Death penalty: if the accused faces a death penalty in the requesting country, he can be denied extradition. 
9. Human Rights: Extradition can be denied if there are reasonable grounds to believe that the accused would suffer or already has suffered a violation of their human rights, such as torture, in the requesting country.

If applicable, they are also bound by the treaties shared with numerous countries. In the absence of such treaties, courts will refer to domestic laws governing judicial cooperation to determine whether to approve or deny an extradition request. If the court rules that the individual can be extradited, the UAE’s Minister of Justice must approve the ruling. The Minister of Justice has the authority to approve or reject the extradition or to approve it with conditions, such as the requirement that the person should not face the death sentence in the requesting country.

Extradition of Sanjay Shah, 2022: Dubai court approved the extradition to Denmark of a British financier responsible of a $1.7 billion tax scheme that occurred from 2012 to 2015. He was arrested in 2022 following an extradite request from Denmark.

Another successful extradition in 2019 regards an Indian businessman, Sanjay Bhandari, for being wanted in India for alleged financial crimes. Having lived in the UAE since 2000, he was arrested in 2016 after the Indian Authorities sought extradition. In 2019, the UAE Supreme Court approved Bhandari’s extradition. These successful extraditions show the UAE’s commitment to international legal cooperation as well as its adherence to strict extradition processes and conditions.

The UAE has a well-established legal framework surrounding extradition that is founded on foreign treaties and agreements as well as domestic laws. The decision to grant extradition is ultimately up to UAE officials, who must weigh the interests of justice against the rights of the individual sought. Nevertheless, the UAE is committed to international cooperation on legal issues, including extradition, and has strict conditions and procedures to ensure the accused’s rights are protected while the UAE’s sovereignty and security are not jeopardised.

It should be noted that this article should not be considered as expert legal advice. If you would like to obtain any legal advice regarding business setups or financial freezones, please do not hesitate to contact us. We offer a 30-minute free consultation with the legal counsels at our firm, Al Reyami Advocates and Muhyealdeen International Legal Consultants.

This article has for an objective to give an illustration of the needed procedure to follow to successfully file a criminal case in the UAE, the types of crimes in the Emirati Law and the charges of each category.

The first step that the victim needs to take to file a criminal case is to file a complaint against the offender in the police. The competent police to receive the complainant is the police that has jurisdiction, the following as per the law is where the criminal offence was committed The complaint needs to include the context of the victim and the offender, this means the relationship that involves both the offender and the victim (for instance if it’s professional, conjugal etc.), the series of events that the victim has undergone that lead to the commission of the criminal offence. The complaint can be submitted in a formal manner which means in writing, or it can be given through of an oral statement in the police and the following will be noted and registered in Arabic and then signed by the complainant.

This complaint is free of charge, yet if the complainant requires the involvement of a lawyer this will require the payment of the legal services provided by the lawyer.

Once the complaint is submitted the police, the latter will then submit the complaint to the competent department within the police to fully investigate and review the complaint. The police will take the statements of all parties, both the offender and the complainant, the police can as well request witnesses to testify, or the latter can be requested to provide their testimony as per the request of the complainant or the offender.

If the police concludes from its side that the complaint entails an actual commission of a criminal offence, then the complaint will be referred to the public prosecution. The following is a judicial authority that has been legally attributed the role of referreing criminal cases in the case where the designated prosecutor determines that a criminal offence has been committed under the UAE Penal Code.

This step is the second step that follows if the police submit the case to the public prosecution. The complainant and the offender will be summoned by the prosecutor and will be able to request the appearance of witnesses before the prosecutor. All of the statements will be registered in Arabic and the involved parties and witnesses included.

In the case where the prosecution has finalized his investigation and analysis and concluded that a criminal offence has been committed under the Emirati Law, it will order the summoning of the accused for the following to appear before the competent court and the prosecution will as well share with the competent court the details of the criminal offence and the charges of the accused. However, if the prosecution does not find sufficient evidence to characterize a violation under the UAE Penal Code it will not pursue the action and will as a result archive the case.

The competent courts in the UAE are determined according to the crime committed, the crimes as per the UAE Penal Code are categorized according to their level of seriousness.

The UAE Penal Code divides crimes into three categories according to the level of the seriousness of the criminal offence.

The following are the three categories of crimes as per the UAE Penal Code:

1) Contraventions

2) Misdemeanors

3) Felonies

The level of punishment according to the category of the crime will vary in terms of harshness.

The following are the least in terms of seriousness and therefore the least punished. According to the UAE Penal Code, a contravention is any act or omission punishable under the laws or regulations, by one or both of the two following penalties:

• Custody for not less than twenty-four hours and not more than ten days
• A fine not exceeding 10,000 dirhams

According to the UAE Penal Code, a misdemeanor is an offence that is punishable by one or more of the following penalties:

• Confinement
• A fine exceeding 10,000 dirhams
• Diyat (payment of “blood money”), the following is due in the case of accidental death and is of 200,000 dirhams

According to the UAE Penal Code, a felony is the crime that is punished by any of the following punishments:

Any of retribution punishments

• Capital Punishment
• Life imprisonment
• Temporary imprisonment

A very important point to be clarified is that fines imposed on the offender are not payable to the victim, the following are to be paid to the UAE government. The fines or their maximum limit do not by any means limit the level of compensation that the victim can claim. The victim can in fact demand compensation for the damage that they have been subjected to separately, this means that the victim must file for a separate civil case, in which the victim needs to demonstrate how the criminal offense committed has caused them damage. For instance, our firm has filed a civil claim for a client who was a victim of a car accident who has suffered serious injuries having been subjected to it, the client has received a favorable decision in her criminal case, our firm then subsequently filed a civil claim to compensate the damage undergone by our client and received a favorable judgement from the court.
However, the victim can as well intervene in the criminal case by filing what is called as a joint civil action the following will allow the victim during same criminal case to demand compensation for the damage that is has suffered, in this case the once the judge rules that the crime was indeed committed he will afterwards and in the same decision award a separate financial compensation taking into consideration of the damage that the victim has been subjected to.

In the case where the prosecution considers the existence of a crime under the UAE Penal Code the case is then submitted to the court for the judge to decide on the case and give his verdict. However, the UAE court system is a 3-level system. The following means that the first judgement by what is called as the Court of the First Instance is going to be subjected to what is called as an appeal and the following is as well going to be subjected to cassation. This right is granted to the offender to ensure justice for both the victim and the offender. However, what is crucial to highlight that despite the appeal right being at the disposition of the offender it is in fact not the case for the victim. As the victim is primarily represented by the prosecution (The state) the following is entitled to the right of appeal, yet if the victim decides to file a joint civil action during the criminal proceedings, then the latter can file for appeal.

The accused is entitled to the right to appeal twice, yet this right is subjected to delays that they imperatively need to respect for the appeal accepted, otherwise if the delay is over and the accused files for the appeal the appeal will not be accepted. The accused beholds the right to appeal the first judgement given by the Court of First Instance. The delay to file for appeal 15 days, if filed latter the appeal is not going to be accepted and the judgement of the Court of First Instance will then be definitive. However, If the accused was able to file for appeal and the Court of Appeal decided and the accused is still unsatisfied with the judgment, they can still challenge the judgement by filing an appeal against the decision of the Court of Appeal before the Court of Cassation. The delay to appeal before the Court of Cassation is 30 days.
The content of this article should not be taken as legal consultation. In case you are involved in any problems related to the following subject or have any queries, Hassan Al Reyami Advocates and legal consultants would be delighted to address your concerns during a 30-minute free legal consultation session offered to you.

Article 110 of the Constitution provides for the process of promulgation of laws. The process of law-making in UAE  follows the following procedure;

The Cabinet prepares a bill and submits it to the Federal National Council – FNC (Arabic) which may pass, amend or reject them. The Cabinet then submits the bill to the President of the Federation for his approval and presentation to the Supreme Council for ratification. The President of the Federation signs the bill after ratification by the Supreme Council and authorises its promulgation. Bills or draft laws produced by the Cabinet will not have a legal impact until they are approved by the President and ratified by the Supreme Council. If the FNC enters any amendment to the bill that is not acceptable to the President of the Federation or the Supreme Council, or if the FNC rejects the bill, the President or the Supreme Council may return it to the FNC or the President may promulgate the law after ratification by the Supreme Council.

Such laws shall come into force one month after the date of their publication in the official Gazette unless another date is specified in the said law. Article 112 provides that laws apply only from the date they come into force without retrospective effect. When necessary and in matters other than criminal ones, the law may provide otherwise

Bills or draft laws acquire legal force only once they have been approved by the President and confirmed by the Supreme Council. When there is an urgent need to publish a law between Supreme Council sessions, the President, in consultation with the Cabinet, may issue the required legislation in the form of decrees, which have the force of law. 

This article will detail the emergence of Banking Law UAE with the passing of Decree-Law No. 14 of 2018 and highlight Federal Law No. 23 of 2022  which amends Law No. 14 of 2018 (the Banking Law). 

The Federal Law No. (14) of 2018 governing the Central Bank of the UAE (UAECB) and Regulation of Financial Institutions and Activities (the “Law”) was issued replacing Federal Law Nos. (6) of 1985 addressing Islamic Banks, Financial Institutions, and Investment Companies, and Federal Law No. (10) of 1980 addressing the Central Bank, The Monetary System, and the Organization of Banking. The new rules are designed to protect the stability of the financial system and the currency, emphasizing the key objectives of the Central Bank of which the most important is to protect the stability of the financial system in the UAE, ensure prudent management of Central Bank foreign reserves and maintain the stability of the national currency within the monetary system. The Law provides for the establishment of a licensing committee under the Ministry of Finance with representatives from all regulators in the UAE to consider and decide on the regulatory rules applicable to emerging financial activities not captured under existing legislation by any regulatory in the UAE. 

The role of the licensing committee as described under the Law will provide a forum for assessing and qualifying emerging financial services and activities that might otherwise cause regulatory uncertainty to market participants and regulators alike. With a number of regulators with a legislative mandate in the UAE, it is not uncommon to have regulatory gaps or overlaps. In addition to spelling out specific licensing requirements for financial activities, the Law strengthens the Central Bank’s enforcement powers to impose a broad range of administrative, and financial sanctions and penalties on licensed financial institutions that violate this Law’s provisions. 

highlighted briefly below are the key provisions of the Law which are relevant to financial institutions in the UAE.

1.  Higher Shari’a AuthorityThis refers to the establishment of a Higher Shari’a Authority (‘Authority’) to replace the authority contemplated by the 2016 Cabinet Resolution. The Authority will, amongst others, impose regulations on Islamic financial institutions and perform a supervisory role over the internal Shari’a’s supervisory committees of such institutions. Islamic financial institutions will be responsible for the costs of the Authority.
2. Issuance of SecuritiesSecurities issued by the UAECB or the Government shall be subject to rules issued by the UAECB, including issues such as issuance, custody and trading, together with the appointment of primary dealers for such securities including those issued in the public sector. 
3. CurrencyReconfirmation that the UAECB is solely responsible for the issuance of currency in the UAE, which also includes any token.
4. Undertaking Financial Activities in UAEThe Law expands on previous provisions and confirms that no financial activities may be carried out in or from the UAE without a licence. In this respect, the UAECB has been given new powers to inspect the premises of any person suspected of carrying out financial activities in the UAE, as well as the ability to require any related information from that person. A new addition is that any promotion of financial activities or products may not be carried out in or from the UAE unless it is subject to the Law. The Law clarifies that promotion includes any communication aimed at inviting or offering a transaction or offering to conclude any agreement. The Law indicates that rules and regulations would be issued which will clarify applicability, prohibitions and exemptions. Such provisions arguably change the position of cross-border activities by non-UAE licenced institutions in the UAE, which may need to be reassessed.
5. Financial ActivitiesHelpfully, the financial activities subject to the Law and UAECB supervision have been listed, and range from the taking of deposits, provision of credit, currency exchange, payment services and other financial products. Interestingly, financial products include financial derivatives, bonds, sukuk and equities. The inclusion of digital and virtual banking licences is a positive move, and the arrangement and/or promotion of financial services is now an independent licenced activity.
6. LicencingThe Law sets out in greater detail the licencing requirements and processes while granting the UAECB broad discretion to control such licencing. It also states in detail the ability of the UAECB to impose conditions on any new or existing licences, and the circumstances in which licences may be suspended, withdrawn or revoked. While such circumstances are far-reaching and contain events that could be seen as minor, the historical approach of the UAECB should give financial institutions comfort that such powers would be exercised fairly and reasonably.
7. RegisterThe Law confirms the electronic register for all financial institutions to be maintained by the UAECB (‘Register’). Any amendment to the articles of a financial institution shall require the consent of the UAECB and only take effect once entered into the Register.
8. Legal Form and OwnershipBanks (excluding branches of foreign banks) must take the form of public joint stock companies, while other financial institutions must take the form of private joint stock companies or limited liability companies (as applicable). The minimum UAE ownership in banks has been increased to 60 per cent. 
9. Authorised IndividualsThe Law introduces the concept of authorised individuals performing designated functions, and imposing fit and proper conditions on all such individuals. While the UAECB may set rules and conditions in this regard and must approve all such individuals, the Law confirms that they include chief executive officers, senior managers, executives and anyone else carrying out a designated function (as defined by the UAECB).
10. Related PartiesRelated party transactions are dealt with in the Law, with quarterly reports required by the UAECB of all credit transactions with related parties. The UAECB has wide powers to act on such reports, including requiring provisioning against such facilities or prohibiting further facilities.
11. Non-banking Activities and Assets
    Subject to the exclusion granted to Islamic financial institutions, the prohibition on carrying out non-banking activities continues including in relation to the trading of goods, or ownership of property or shares. Exceptions continue to apply where they are received in settlement of a debt, however, interestingly the previous exception of owning property for the bank’s operations has been removed. Instead, it appears to have been replaced with a ratio to be stipulated by the UAECB. 
12. Bank Failure
    The Law introduces a framework for deposit-taking financial institutions to be developed by the UAECB, including triggers signalling the financial difficulties of such institutions. Under such a framework, the UAECB will have wide discretion to impose conditions, require additional capital, force or permit mergers, freeze assets, liquidate the institution or, effectively take over management of the institution (whether itself or through a committee).
13. Lending to the Board
    The Law reconfirms the previous clarification which was issued in 2015 by the UAECB, noting that the Commercial Companies Law does not apply, and financial institutions may lend to their board in accordance with directives issued by the UAECB. 
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14. Change of Control
    Controlling interests in any financial institution remains subject to the approval of the UAECB, as does the establishment of any additional branch or subsidiary inside or outside the UAE.
15. Governance
    The UAECB will establish a general framework for the governance of financial institutions. In a welcome development, an electronic rulebook is contemplated which will include all regulations, instructions and circulars.
16. Consumer Protection
    There is an increased impetus on consumer protection with several sections of the Law focusing on the protection of depositor interests, and expanding the remit of accessibility of financial services across all strata of society. The UAECB has been mandated to work with the Ministry of Finance to develop a deposit guarantee scheme.
17. Lawsuits
    The UAECB is given the right to intervene in any lawsuit filed involving a financial institution, with the UAECB to be notified of all such cases.
18. Confidentiality
    The Law reconfirms the confidentiality of all customer information, only to be disclosed with the prior written consent of the customer. The issuance of specific banking secrecy regulations is contemplated.
19. Grievances
    An independent Grievances and Appeals Committee is to be established, consisting of judges and experts. Such a committee shall be responsible for any appeals against decisions or actions by the UAECB.
20. Licencing Fees
    The UAECB has been newly vested with the discretion to charge for issuing licences and authorisations.
21. Period to comply
    Financial institutions are required, as necessary, to reconcile their positions to comply with the Law within the period stipulated by the UAECB.
22. Foreign Judgments
    One area which has caused issues for a number of financial institutions is the applicability of foreign judgments. In this respect, the Law confirms that foreign judgments shall apply in accordance with the applicable legal proceedings of effective laws in the UAE. This would appear to confirm the position commonly held that foreign judgments are not binding on UAE financial institutions until they are recognised in the UAE through the relevant legal process.

Decree No 23of 2022

The primary law governing the banking sector in the UAE was amended, with the amendments to come into force from 2 January 2023. Of particular interest to financial institutions are two amendments:

• Compound Interest

The existing Banking Law (Article 121(3)) provided for a restriction on the charging of interest on interest. Through the amendments the restriction will remain, however, clarification has been included to confirm the reference is to compound interest, and that in this respect any rules or regulations issued by the UAE Central Bank should be followed. It should be noted that the restriction was also referred to in the Consumer Protection Regulations issued by the UAE Central Bank, albeit in relation to consumers. The amendment, in particular reference to rules and regulations of the UAE Central Bank, is likely to be a response to the various questions which arose following the introduction of the Banking Law in 2018 and confirms the ability of the UAE Central Bank to decide on the scope and applicability of such restriction. This includes questions on the applicability to retail versus corporate customers, and also applicability to certain products and the way in which interest is calculated. 

• Obtaining Security

The amendments introduce the need for financial institutions to obtain ‘sufficient securities’ when lending to natural persons and sole proprietorships taking into account the relevant lending and the customers’ income and financial position. This follows the UAE Central Bank’s Notice No 3944 of 2021 on the same topic. Further, no application, suit or argument shall be accepted before the competent judicial authorities or arbitral tribunals may be filed by a licensed financial institution in the event that it did not obtain the required securities. The UAE Central Bank also reserves the power to impose administrative and financial penalties for non-compliance. 

The new enforcement powers granted to the Central Bank are balanced by the introduction of an independent committee, named “Grievances & Appeals Committee” to be established under the chairmanship of a court of appeal judge. The Committee shall have the sole and exclusive jurisdiction to decide on grievances and appeals against any decisions by the Central Bank related to licensing, authorization of individuals, and licensing and designation of financial infrastructure systems. With strengthened enforcement powers to impose a broad range of administrative, financial sanctions and penalties on licensed financial institutions that are in violation of the provisions of the Law, the UAE Central Bank will exercise effective control over the financial sector and market participants allowing for enhanced customer protection and regulatory oversights, which is in line with international best practices in financial regulatory ecosystems. 

*This article’s material should not be construed as legal advice. Hassan Al Reyami Attorneys and legal experts are happy to answer your questions during a 30-minute free legal consultation session that is being given to you if you are facing any issues pertaining to the following subject or have any other inquiries.

Towards the end of 2022, the UAE government in accordance with its objective to increase the presence of the UAE nationals in the private sector minimally by 10% in 2026, has decided to extend the salary support under the UAE national Salary Support Scheme to UAE citizens working in the private sector. The recent legislations have been introduced with the objective of attracting more Emiratis to the private and banking sectors as Emirati employees will considering the recent changes be entitled to several benefits; the following include bonuses, allowances, and other financial benefits.

The recent extension of the UAE Salary Support Scheme to Emirati employees in the private sector entitles them to an allowance if their salary does not exceed 30,000 dirhams per month. According to the recent legislation, UAE employees are entitled to the maximum of: 

• Holders of bachelor’s degree: 7,000 dirhams 
• Diploma holders: 6,000 dirhams
• Secondary level diploma holders: 5,000 dirhams 

The following allowance is due to all Emirati employees in the private sector, even to those employed prior to the introduction of the NAFIS program.

However, the recently introduced legislation as well includes other benefits: 

In addition to the allowance mentioned above, UAE employees in the private sector whom salary is not more than 50,000 dirhams are entitled to an allowance of 600 dirhams for each of their children However, the following allowance will be provided only for an employee with a maximum of 4 children and will be allocated for 5 years.

The newly introduced rules as well have extended the period of financial support to 12 months for those who have suffered from the loss of their jobs and the following solely applies to employees who lost their jobs for reasons out of their own control, therefore the following doesn’t apply for instance to those who have lost their jobs due to the commission of an offence that lead to the termination of their contract.

The following steps taken are in line with the federal government to increase the percent of UAE employees in the private sector, and as the UAE government takes this goal seriously, it has put in place penalties for non-compliance by the private sectors with the current legislation.

From the beginning of this year, in case of failure to meet the required Emiratization percentage in the private sector, and the following applies to companies with more than 50 skilled employees if they fail to reach the Emiratization percentage of 2% annually. As per the federal government’s recent decision the companies are then subjected to fines. The Emiratization percentage is supposed to increase gradually till it reaches to the end goal which is of 10% by 2026.In 2022 it’s of 2% and it’s supposed to double by 2023 and so on. The applicable fine that is imposed on companies who fail to reach the required percentage is of 6,000 dirhams and it’s calculated monthly and per quota position that is not filled by an Emirati employee and is payable at the beginning of the following year, for example the fine for the year 2023 is payable in the beginning of year 2024.

However, the federal government allows failure to meet the percentage in a temporary manner if the following does not exceed the period of 2 months.

In addition to the aforementioned fine, the UAE government as well is aware of the risks that such benefits can create. As a result, penalties are imposed in the case where an Emirati citizen provides false documents in order to unlawfully obtain benefits due under the NAFIS program or if an employer provides false data regarding the Emiratization percentage with the intention of evading the payable fine.

Cabinet Resolution no. (95) of 2022 Regarding Penalties and Violations Relating to the Emirati Cadres Competitiveness Council Initiatives and Programs that has been approved by the UAE Cabinet by the end of 2022 details the applicable penalties in the case of violations regarding the veracity of submitted documents and data.

The following are some of the potentially applicable penalties in the case of violations committed by employees and employers regarding the NAFIS program:

Administrative fine of not less than (20,000) twenty thousand dirhams and not more than (100,000) one hundred thousand dirhams per employee.

Terminating the support and refunding all amounts spent.

The content of this article should not be taken as legal consultation. In case you are involved in any problems related to the following subject or have any queries, Hassan Al Reyami Advocates and legal consultants would be delighted to address your concerns during a 30-minute free legal consultation session offered to you.

The Insurance sector in the UAE, is a highly regulated industry. What previously used to be the responsibility of the Insurance Authority in the UAE, now lies under the responsibility and governance of the Central Bank following the recent changes in UAE’s Federal Laws. 

The Central Bank of the UAE, and the UAE Insurance Authority, merged to create a unified regulator for the insurance and banking sector in the UAE. In late 2022, the Central Bank issued a new regulation titled as the “Regulation Concerning the Establishment of Ombudsman Unit in the UAE”, also known as Ombudsman Regulation. Which in Arabic is known as Sanadak. 

The regulation leads to a creation of an Ombudsman Unit which would act as an independent unit that is both financially and administratively independent. With the ability and power to handle complaints. This means receiving them, handling them, reviewing them, and resolving the complaints in a fair, transparent and legally sound manner.

The Ombudsman regulation outlines a clear detailed process on the mechanism set out to handle the complaints. It states who can file a complaint, the type of complaint handling mechanisms available that fall under the scope of the Ombudsman Regulation, the annual fees that is payable under the Licensed Financial Institutions and the insurers. Further, the regulation includes provisions on the internal governing structure including the management, its functions the employees and the delegation of powers. 

Any Insurance disputes, currently needs to be referred to the Insurance Dispute Regulation Committee. Moving forward, all insurance disputes or complaints need to be first sent to the insurance companies and if they are not resolved, then they need to be sent to the Ombudsman Unit. To file an appeal to the decision by the Ombudsman Unit, regarding disputes relating to insurance, the jurisdiction for such appeals lie with the IDRC and hence forward the IDRC will continue to operate as a body, although, with revised jurisdiction. Any appeals to decisions relating to Licensed Financial Institutions, similarly the role will be played by the Unit’ Appeal Committee that is to be setup under the Ombudsman Regulation. 

The Ombudsman Committee would be able and authorized to accept the complaints made against licensed financial institutions and insurers in relation to provisions of services or products or an offer to provide certain services or products by insurance companies or their failure to provide a particular service, or product requested by the complainant due to arbitrary reasons, or a loss that could be financial or harm that affects the complainant through any deception, that is misleading, fraudulent or is an unfair behaviour on behalf of the licensed financial institutions and the insurers.  The entity filing the complaint can be an individual, sole proprietor or small medium enterprises as specified in the regulation. 

An Official Gazette will be published including the Ombudsman Regulation and will be effective for one month from the date of publication and will be operational as of one year from the date of publication of the official gazette Ombudsman Regulation.

 The new regulation makes a significant change in the consumer dispute resolution process which impacts the licensed financial institutions and insurers and the manners in which they handle disputes and complaints. A main criteria prior to approaching the Ombudsman unit is the customer should have filed a complaint with the licensed financial intuitions or the insurers 30 days prior. 

The content of this article should not be taken as legal consultation. In case you are involved in any problems related to the following subject or have any queries, Hassan Al Reyami Advocates and legal consultants would be delighted to address your concerns during a 30-minute free legal consultation session offered to you.

Various questions are posed regarding the matter of women’s rights after divorce in Emirati Law, as a result this article will be dedicated to answering these following recurrent queries.

Firstly, we should commence by defining the notion of divorce, article (99) of Personal Status law resulting from Federal law no. (28) Year 2005 “Repudiation is the dissolution of the valid contract of marriage in the form legally prescribed.”. The dissolution of the contract of marriage as the result of divorce entitles the divorced woman to a certain number of rights as per Emirati Law.

However, it would be crucial prior to presenting these following rights to briefly illustrate the different types of divorce that figure in Emirati Law.

Divorce could be either retractable or non-retractable:

As article (104) of Personal Status law stipulates “retractable repudiation does not put an end to marriage unless after the expiry of the waiting period (Idda).”

As article (104) of Personal Status law stipulates “The non-retractable repudiation ends the marriage upon its occurrence. It may take one of the following two forms:

1. Repudiation with right to remarry: The divorcee may not return to the man who divorced her except after a new contract of marriage and a new dowry;
2. Final and decisive repudiation: The divorcee may not return to the man who divorced her except after expiry of the waiting period (Idda) from another husband who had carnal knowledge of her pursuant to a valid marriage.”

The nature of the divorce is consequential in terms of the rights that the divorcee will be entitled to.

The rights that divorcees are entitled to in Emirati law are the following: Alimony “Nafaqqat Al’Idda”, Sheltering “Nafaqqat Al Sukna”, Compensation due to unilateral divorce “Nafaqqat Al Mut’ah”, and Mu’akhar.

Firstly, the Waiting period or Al Iddah as article (136) of Personal Status law is ““Idda” is an obligatory waiting period during which the wife remains without marriage, as a result of separation” and during that period the divorce is not considered as definitive, yet the Islamic law and the Emirati law granted the woman at this duration a certain number of rights in order to guarantee her safety, the following rights are the Alimony and Sheltering.

Alimony is allocated in order to cover food, clothing, and medicine whereas Sheltering is allocated in order to guarantee a decent shelter for the divorcee during the Waiting period.

As per article (69) of Personal status law “Alimony and sheltering, during the waiting period (“idda”), are due to the divorcee in a reversible divorce, in a non-retractable divorce if the divorced woman is pregnant and, if she is not, only sheltering is due.” In addition, article (70) indicates “No alimony is due to the widow during her waiting period because of the death of her husband but she is entitled to live in the conjugal domicile during the said period.”

Therefore, according to article (69) the divorcee can claim Alimony and Sheltering in these following cases:

• The divorcee in a reversible divorce is entitled to Alimony and Sheltering during the waiting period
• The divorcee in a non-retractable divorce is entitled to Alimony and Sheltering if she is pregnant
• The divorcee in a non-retractable divorce is solely entitled to Sheltering

• Article (69) of personal status law indicates that the divorcee from a non-retractable divorce who is not pregnant is solely entitled during the waiting period to sheltering

• Article (70) of the same law states that the widow is not entitled to Alimony but is entitled to living in the conjugal domicile during the waiting period

• The divorcee is not entitled to Alimony if she decides to abandon it during Khul’ divorce cases (the following is when the woman requests divorce before the judge by simply submitting a petition to the court without having to give grounds to substantiate her demand, yet the husband is still needs to give his consent to divorce)

• The entitlement to Alimony is not inheritable, if the wife is deceased entitlement is no longer due

• Death of the husband 

Alimony is assessed according to article (63/2) of the same law considering the financial abilities of the husband, the economic context, and the allocated alimony must be adequate to satisfy the divorcee’s needs.

The divorcee can successfully claim an another compensation if she’s eligible and the following is due if the divorce was unilaterally decided by the husband.

According to article (140) of Personal Status law “In case the husband divorces his wife from a valid consummated marriage by his unilateral will without a request from her, she is entitled to a compensation other than the alimony paid during the waiting period depending on the financial status of the husband provided it does not exceed a one-year alimony payable to those in similar condition.” In this case the compensation is allocated to comfort the unilaterally divorced wife.

When assessing this compensation, the judge takes into consideration the level of harm that the woman had to endure as a result of the divorce. The judge will as well take into consideration the financial situation of the husband and decide whether the payment will be attributed to the divorcee in installments or paid wholly at once.

In case it was decided that the wife will have Mu’akhar then the divorcee will as well be entitled to claim it.

In Emirati law the woman is not legally obliged to secure her own finances, as article (63) of Personal Status law “Alimony includes food, clothing, dwelling, medical care”, therefore Alimony is a right that the wife is entitled to even if she has her own income, article (62) of Personal Status law indicates that “A woman having reached the age of full capacity is free to dispose of her property and the husband may not, without her consent, dispose thereof;”

Firstly, in the case where the wife dealt with her own finances and the husband did not execute his legal obligation that consists of dealing with the finances of his wife, the latter can file for Separation for Abstention from Support, as article (124) states “If the present husband abstains from supporting his wife and he does not have apparent funds from which he can pay, within a short time, the due alimony, the wife may ask separation.”

Therefore, If the wife divorced wife dealt with her own finances during marriage this encompasses dealing with her food, clothing, dwelling, and medical care as indicated in articles (62) and (63) from Personal Status law she is entitled as per the law to claim the spent money and successfully obtain it if it hasn’t been proven that the husband was facing financial difficulties or other circumstances that prevented him from executing his obligation.

The Emirati law obligates the father to deal with the finances of his children indicated in article (78) of personal status law “Alimony of the small child who has no financial resources is on his father until the marriage of the girl or until the boy reaches the age at which his fellow-mates earn their living, unless he is a student continuing his studies with normal success.”

Therefore, the law does not oblige the woman to contribute to her children finances as it’s the obligation of the father, and if the husband wishes that the wife could contribute the wife cannot be forced to agree such requests, the wife has to provide her consent to participate financially, as the law indicates in article (62) of Personal status law “A woman having reached the age of full capacity is free to dispose of her property and the husband may not, without her consent, dispose thereof;” The father cannot cease to execute his legal obligation unless he is facing a serious financial difficulty and the wife can assume the obligation temporarily with her own willingness.

Therefore, the divorcee can in fact claim her financial contribution if it was given without her prior consent and if her husband was not facing serious financial difficulties.

The content of this article should not be taken as legal consultation. In case you are involved in any problems related to the following subject or have any queries, Hassan Al Reyami Advocates and legal consultants would be delighted to address your concerns during a 30-minute free legal consultation session offered to you.

International arbitration in the United Arab Emirates (“UAE”) has developed significantly in recent years with both domestic and international parties increasingly drawn to many of its advantages over conventional court litigation. A critical factor in the UAE’s jurisdictional development as a credible hub for international arbitration is the introduction of a streamlined and efficient enforcement regime for both domestic and foreign arbitral awards. The UAE introduced federal law No.6 of 2018 on Arbitration in 2018. It clarifies the procedures to challenge the enforcement of an arbitral award before the onshore UAE courts. The arbitration law struck out Articles 203 to 218 of the UAE Civil Procedure Law No. 11 of 1992 and handled a few arbitration provisions in the UAE. The new arbitration law contains 61 articles and it applies to the arbitration conducted in UAE. The UAE has a well-established civil law “onshore” court system which consists of the federal judicial system in place in the Emirates of Abu Dhabi, Ajman, Fujairah, Sharjah and Umm Al-Quwain as well as the separate court systems retained by Dubai and Ras Al Khaimah, as well as a common law “offshore” court system based in the Dubai International Financial Centre (“DIFC”) and the Abu Dhabi Global Markets (“ADGM”).

 Article 52 of the Arbitration Law states that an arbitral award made per the Arbitration Law has the same binding force on the parties as a court ruling. The award can be enforced directly before the UAE federal or local Courts of Appeal and an enforcement order should be given by the Court within 60 days of an enforcement request. under Article 53 however, there are eight grounds on which an award debtor may apply to the court challenging the execution proceedings within 30 days from receipt of notification of the award (Article 54(2)). In this event, the court may suspend enforcement proceedings for up to 60 days to allow the Tribunal to eliminate grounds for setting aside the award, where appropriate, (Article 54(6)). Any remaining grounds will be referred to the Court of Appeal, which will review the submissions and evidence of the parties before deciding whether to ratify or annul the arbitral award. In making this decision, the court should not consider the merits of the arbitral tribunal’s findings and should only annul an award if one of the procedural grounds contained in Article 53 of the Arbitration Law is applicable. As with the enforcement of judgments, the losing party is entitled to appeal the court’s decision with a single round of appeal provided for in Article 54(1) to the Court of Cassation. 

The UAE arbitration law does not apply to the recognition and enforcement of foreign arbitral awards in onshore UAE. The substantive law and procedure for the recognition and enforcement of foreign arbitral awards in onshore UAE are set out in Articles 85 and 86 of the Cabinet Regulations Number 57 of 2018 of the UAE Civil Procedure Law. 

A party seeking the recognition and enforcement of a foreign arbitral award in onshore UAE will need to submit either an application for recognition of the foreign arbitral award or file an ex-parte petition directly with the execution court following which, the execution judge will render an order within three days. However, for a foreign arbitral award to be recognised in the UAE, the conditions set out in Article 85 (2) of the Executive Regulations must be satisfied as these conditions can form the basis of any challenge. The conditions in Article 85 (2) are as follows: 

• The UAE Courts do not have exclusive jurisdiction on the subject matter of the judgment; 
• The judgment has been issued by a court having jurisdiction under the law of the country in which it was issued and was duly attested; 
• The opposing parties in the case have been summoned to appear and were represented before the court or tribunal; 
• The judgment or order acquired the force of res judicata under the law of the court where it was issued (proof may be required through a certificate or the judgment itself might prove such); and 
• The judgment does not contradict the public order or morals of the UAE. 

Therefore, parties need to ensure that the above conditions are met before submitting an application for enforcement as failure to do so may lead the application to being rejected. 

The DIFC and the ADGM are financially free zones within the UAE with their own civil and commercial laws. In particular, the DIFC has its own Arbitration Law, DIFC Law No. 1 of 2008 which governs arbitrations seated in the DIFC and is entirely separate from the UAE Arbitration Law (UAE Federal Law No. 6 of 2018) which governs arbitrations seated in onshore UAE. Part IV of the DIFC Law No. 1 of 2008 covers the rules relating to the Recognition and Enforcement of Awards.
The process by which a party will apply for the recognition and enforcement of an arbitral award in the UAE will depend on whether the arbitral award is “domestic” or “foreign”. Domestic arbitral awards are those which are rendered by an arbitration institution in the UAE such as Dubai International Arbitration Centre (“DIAC”) and Abu Dhabi Commercial Conciliation and Arbitration Centre (“ADCCAC”). Whereas foreign arbitral awards are those which are rendered by an arbitration institution outside of the UAE.

While it has predominantly been difficult to enforce foreign arbitral awards in the UAE, the outlook changed significantly when the country became a signatory to the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 or “the New York Convention” (NYC) in November 2006. Further, many of the bilateral or multilateral treaties to which the UAE is a party such as ‘The Riyadh Arab Agreement for Judicial Co-operation 1983 (“Riyadh Convention”)’ and the ‘GCC Convention for the Execution of Judgments, Delegations and Judicial Notifications 1996’ (“GCC Convention”) deal with the enforcement of arbitral awards and, where one of these is applicable, this may provide an alternative route of enforcement.

 Under the NYC, the enforcement of a foreign award may only be refused on the following grounds:  

• The parties to the arbitration agreement were under some incapacity or the arbitration agreement is not valid under the law to which the parties subjected it or the law of the country where the arbitral award was made;  
• The party against whom the arbitral award is invoked was not given proper notice of the appointment of an arbitrator or the proceedings, or was otherwise unable to present its case;  
• The arbitral award deals with a difference not contemplated or falling within the terms of the submission to arbitration;  
• The composition of the arbitral authority or the arbitral procedure was not following the parties’ agreement or the law of the seat of arbitration;  
• The arbitral award has not yet become binding on the parties or has been set aside or suspended by the courts at the seat of arbitration;  
• The subject matter of the difference is not capable of settlement by arbitration under the law of The country where enforcement is sought (ie UAE law in this case); or 
• Enforcement would be contrary to the public policy of the state in which enforcement is sought (ie the UAE), 

• DIFC: To enforce an arbitral award in the DIFC, the successful party must make an application to the DIFC Courts according to Article 42(1) of the DIFC Arbitration Law. A party can make such an application for enforcement either with or without notice to the other party. Provided the DIFC Court decides to recognise the award, it will issue an order in both English and Arabic. The award creditor must then serve the DIFC Court order on the award debtor.  
• ADGM: The ADGM follows a similar procedure to the DIFC, which is set out in Part 4 of the ADGM Arbitration Regulations 2015 and provides that upon the application of a party for the recognition or enforcement of an arbitral award, the court decides that if an award shall be recognised or enforced, it shall issue an order to that effect. The party seeking the recognition or enforcement of an award would need to provide to the court:  

1. The original or a duly certified copy of the arbitral award; and 
2. A copy of the arbitration agreement pursuant to which that arbitral award was rendered. 
3. If the award or the agreement is not in English, the ADGM Court may order the provision of a translation. Right of Challenge 

The right to challenge an arbitral award in the courts of the DIFC or the ADGM complies with the requirements of the New York Convention. However, the courts may refuse enforcement if the subject matter of the dispute is not capable of settlement by arbitration under the relevant laws of either the DIFC or ADGM or if the enforcement of the award would be contrary to public policy in the UAE. The process for the recognition and enforcement of a foreign arbitral award in the DIFC and ADGM is the same as the recognition and enforcement of domestic arbitral awards seated in the free zones as set out above.

The ability to enforce a favourable arbitral award is of fundamental importance. The UAE Arbitration
Law has improved the enforcement regime of arbitration awards. There has been a great positive shift and impact which have paved paths for new developments in arbitration such as the monopolising and unifying of the various arbitration centres which will continue to strengthen Dubai’s position as a Global Hub for Alternate Dispute Resolution.

This article’s material should not be construed as legal advice. Hassan Al Reyami Attorneys and legal experts are happy to answer your questions during a 30-minute free legal consultation session that is being given to you if you are facing any issues pertaining to the following subject or have any other inquiries.