Wednesday, December 6, 2017

Vehicle registration, licensing Fees revised in the UAE

A new unified federal fee structure for vehicle registration and testing as well as driver licensing has come into effect nationwide, according to a decree published in the official gazette.

Issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the federal decree pertaining to the new vehicle licensing fees came into effect on December 1.

Shaikh Mohammad issued the Ministerial Decision No. 30 for 2017 on October 4 to regulate traffic services and safety, which was published in the latest edition of the official federal gazette.

Monday, December 4, 2017

UAE Labour permit fees Increased from December 4th

Starting from December 4th, 2017, the Ministry of Human Resources and Emiratisation (MORHE) will enforce a revised fee structure for issuing work permits linked to the classification of companies.

The new classification system of companies will be in three categories according to the skill level and the cultural diversity of their workers, in the implementation of a recent Cabinet decision. Under the system, new work permit fees will be applied depending on the level of skill of the worker and whether he or she is outside or inside the country and the category of the company.

Companies recruiting Emiratis or citizens of Gulf countries as well as fishing boat facilities will be exempt from work permit fees, according to another Cabinet decision.
Classification System

The first category of the new system includes fishing boats owned by citizens and enterprises, members of the Emiratisation Partners Club, small and medium enterprises that are members of the youth project support institutions which meet the conditions as well as the new service centres “Tadbeer”.

Category 2 -A company is classified as “Category 2” and rated as A, B, C and D in this category — according to the ratio of skilled workers, and to the extent of its commitment to multicultural diversity.

Category 2A -A company will be classified if it has 40 percent or more skilled workers of its total workforce — and at least 50 percent of the multicultural ratio is available in the company.
Category 2B -A company, which has between 10 percent and less than 40 percent skilled workers and at least 50 percent of the multicultural ratio will be classified as 2B.
Category 2C- If the percentage of skilled workers ranges between 5 percent and less than 10 percent of the total workforce and it has at least 50 percent of the multicultural ratio, the company will be classified as category 2C.
Category 2D -The company is classified as category 2D if the percentage of skilled workers is less than five percent of the total workforce, or the establishment does not have at least 50 percent of the multicultural ratio.

Cabinet resolution

The Cabinet resolution stipulates that companies with a workforce of not more than three workers will be classified in category 2B, which also includes companies with four to 10 workers — if 50 percent of the multicultural ratio is met.

If the multicultural ratio is not met, a company will be classified as category 2D.

A company will be included in the third category of the system if it has committed one or more of the 10 violations as stated in the Labour Law.

The facilities are transferred from one category to another, or from one level up or down, whenever they meet the classification criteria and conditions of the category or level to which they are transferred.

Work permit fees for workers from outside the country

The fee for issuing a work permit for a worker from outside the country is Dh 200 for the three categories. The fee for issuing a work permit for two years is Dh 300 for the companies listed in the first category, regardless of the skill level of the worker.

The fee for the second class companies is Dh500 for the skilled worker and Dh1,200 for the semi-skilled worker, level B Dh1000 for a skilled worker, Dh2,200 for semi-skilled skill and level C Dh1,500 for a skilled worker, Dh2,700 for the semi-skilled worker, level D Dh 2000 for skilled worker and Dh3,200 for the semi-skilled worker.

The fee for a work permit for workers from outside the country for companies classified in category III is Dh5,000 regardless of the skill level of the worker.

The fee for work permits for a worker from outside the country was also unified, as was the issuance of a work permit of Dh100 for each of the two services mentioned for the companies listed in the different categories in the classification system.

Work permit fees for workers from inside the country

The work permit fee for those who are on sponsorship of their parents for companies listed in the different categories is unified at Dh200.

The fee for a work permit for those who are on the sponsorship of their parents and for a period of two years for the first category is Dh300, regardless of the skill level of the worker, while the companies in the second category A  is Dh500 for skilled workers and Dh1000 for a semi-skilled worker and the companies category IIB  Dh1000 for skilled workers and Dh2,000 for semi-skilled workers.

Companies of category IIC will be charged Dh1,500 for a work permit for a skilled worker and Dh2,500 for a semi-skilled worker, while companies of category IID will be charged Dh2,000 and Dh3,000  for skilled and semi-skilled workers respectively.

Work permit fees for companies listed in the third category will be Dh5,000 regardless of the level of skill of the workers.

A fee of Dh 100 for different categories of companies has been fixed for the application for a work permit and Dh 500 for issuing a work permit for one year for part-time jobs for teenagers.

A fee of Dh100 for the different categories of companies has been fixed for each service for requesting a temporary work permit, issuing a temporary work permit for each month, requesting a work permit for some time, issuing a work permit for some time for each month, requesting a training permit and issuing a training permit for a month and request a permit to test the worker and issue a permit to test the worker  for each month.

Employment transfer fees from one company to another

A fee of Dh100 was determined for companies listed in the three categories for each service requesting a transfer permit and the use of a worker from one company to another and requesting permission to transfer and employ a worker from one company to another owned by the same owner or partner, for a period of two years.

A transfer permit and the use of a worker from one company to another for two years will coast Dh 150 for the companies listed in the first category, regardless of the skill level of the worker.

The fee for the second-class companies at Level A will be Dh250 for the skilled worker and Dh500 for the limited skill and level  B, Dh500 for the skilled worker and Dh1,000 for the limited skill and level C, Dh750 for the skilled worker and Dh1,250 for the limited skill and level D, Dh1,000 for the skilled worker and Dh1,500 for limited skill, while the fee for the companies classified as category III is Dh2,500, regardless of the skill level of the worker.

Renewal and amendment of work permits

The fee for the renewal of work permit for two years will be Dh300 for the first category regardless of the level of skill of the worker and companies in the second category level A, Dh 500 for the skilled worker and Dh1,200 for a semi- skilled worker and level B, Dh1,000 dirhams for skilled workers and Dh2,200 for limited Skill and level C /, Dh1500 for skilled workers and Dh2,700 for semi-skilled worker and level D, Dh2,000 for skilled workers and Dh3,200 for limited skill,while the fee for the companies classified in the third category Dh5,000, regardless of the skill level of the workers.

A fee of Dh200 was allocated for the companies listed in the three categories for each service to change the work permit or the job contract.

A fee of Dh100 per month for the companies included in the three categories has been determined for the renewal of a work permit.

A unified fee for the three categories in the classification system was set at Dh2,000 for the opening of a company register and Dh250 for the electronic signature card and Dh200 for issuing a public relations officer (PRO) card for expats for two years.

The fee for the issuance of an electronic work permit for domestic workers for two years for citizens and one year for expats is Dh100 dirhams and Dh100 dirhams for renewal of the permit.

The fee for the issuance of a work contract for domestic workers for two years for citizens and one year for expats is Dh50 and Dh50 for renewing the contract.

Saturday, December 2, 2017

UAE residents should check credit history before applying for a loan

As more banks rely on a customers’ credit history to make decisions on loan applications, it will become extremely important to pay special attention to credit history and reports. Credit scoring, common in mature markets, is a three-digit number assigned to each borrower – in the UAE’s case between 300 and 900 – that represents their creditworthiness and future risk of default. The higher the number, the lower the risk.  

Your credit history combines records of your existing debts, including credit cards, personal, car and home loans and any missed loan/credit card repayments or bounced cheques will appear as well. All your current credit cards whether used or not will also appear on your credit report. These records (of the past two years) are provided by the banks to the Al Etihad Credit Bureau – the UAE’s official credit bureau.

Al Etihad Credit Bureau is a Federal Government organization that collects credit data, information and financial commitments from banks and financial institutions in order to provide accurate Credit Reports to individuals, financial institutions and companies in the UAE as allowed by the laws and regulations of the UAE

There is a law which says one’s debt repayments cannot be more than 50 percent of their income and your credit report will show how much of that 50 percent you have already used up. When you apply for a loan, your bank will go to the credit bureau to get your credit history details before it makes a decision on your application. The bank will have access to the information that all the other banks have provided, for example, the number of credit cards you have and their limit, the number of loans you have and any missed repayments in the past. This will allow the bank to check whether you have reached your debt burden ratio and check your repayment behaviour. Depending on the bank’s credit criteria of who it will lend to, your credit report will help it make a decision on whether to approve your loan and help it fix a rate.

Therefore before applying, it is a good idea to find out what is in your own report. This is possible by purchasing a copy from the Al Etihad Credit Bureau. The report takes 10 to 15 minutes to issue.

How do I get  Credit Score from Al Etihad Credit Bureau

Visit one of our Customer Service Centers and provide an original valid Emirates ID Card, Passport(s) Copy and a valid Email Address. You can pay with credit, debit or e-dirham cards.
How Much does the Credit Score Cost
Credit Report - Individual or Establishment -----------------AED100
Credit Report - Individual or Establishment with Score --AED150
Credit Report - Commercial  ----------------------------------  AED 180
Credit Report - Commercial with Score --------------------- AED 220
Credit Score  --------------------------------------------------------AED 60