59A7D41EB44EABC4F2C2B68D88211BF4 U.A.E Visa Rules and Procedures-Law updates -free legal advice: 2019

Wednesday, November 20, 2019

How the new UAE insolvancy law will help debt-ridden residents

The law addresses debtors' inability to pay their debts due to bankruptcy and debt default.An insolvency law that was approved by the UAE Cabinet will protect debtors' dignity and gives them the opportunity to manage their finances, the Ministry of Finance has said. The ministry explained how the law will be applied; how debtors can settle their dues; and what documents they will need to submit.

Purpose of the law

The Insolvency Law of Natural Persons addresses debtors' inability to pay their debts due to bankruptcy and debt default. This is known as the 'insolvency of the natural person'. The regulation of this case is linked to the Civil Transactions Act, in accordance with a principle called 'Facilitator's View'. The latter is rooted in Islamic jurisprudence, whereby debtors are granted a reasonable period of time to fulfil their financial obligations. However, this is done provided that such a delay does not cause serious harm to the creditor.

Insolvency law vs bankruptcy law

The insolvency law applies to a natural person who is not engaged in economic activity and is not a trader. However, the primary purpose of both laws is the same: Both exist to protect the common interests of the creditor and the debtor in a fair and balanced manner. The risk is divided between them in such a way so as to alleviate the debtors from the cycle of financial difficulties and enable them to pay off their accumulated debt.

How the law will help
Specialised rules governing the insolvency of a natural person are expected to increase transparency on civil debt repayment transactions and increase the general security of financial transactions, thus enhancing financial stability in the country. It is also expected to accelerate growth and make it easier for individuals to obtain loans, as there are clear rules that are easy to apply to collect bad debts and rehabilitate the debtor financially. This enhances creditor banks' confidence in retail lending and encourages individuals to engage in calculated borrowing. In addition to all its economic objectives, the law has another positive aspect to it: It ensures the protection of the debtors' dignity and helps create an opportunity for them to manage their finances and reduce financial burdens.

Will it affect the economy

The law will bolster the economic stability of the nation and provide a secure environment for personal loans to the contentment of both the creditor and the debtor. The law provides the necessary balance to guarantee the rights of creditors and debtors and encourages increased cash flows.

How long will the court take to decide

The court shall decide on the application (without notice or plea) within five working days from the date of submission of the application.

What happens next?

The decision of the court shall cease the obligation of the debtor to apply for insolvency and the liquidation of their property. Suspension of execution shall continue during the period of settlement of financial obligations unless the debtor breaches obligations.

Appointing experts

In the decision to open a settlement of financial obligations, the court shall appoint one or more experts to assist the debtor in settling financial obligations. The expert shall not be a creditor of the debtor or be associated with them in any interest, or kinship until the fourth degree.

Steps experts will take

The expert shall prepare a plan in cooperation with the debtor, provide the creditors with a copy, and deposit a copy with the court within 22 working days, from the date of the court's decision to instruct the expert to prepare the plan. The court may authorise an extension of the submission period if the need arises.

The expert shall invite the debtor and creditors to one or more meetings, specifying the time and place of the meeting, to discuss and vote on the plan.

They shall be invited to attend the meeting by any means of communication as deemed appropriate.

The first meeting shall be held within 10 working days from the date of providing the creditors with a copy of the plan. The debtor and creditor shall attend the meeting in person, or by someone authorised on their behalf.

Who is not eligible to vote on the plan
  • The debtor's spouse
  • Any person financially supported by the debtor
  • Relatives of the debtor up to the second degree.
Duration of executing the plan
The proposed period for the execution of the plan may not exceed three years from the date of the ratification.

Can the plan be amended

Yes, amendments may be made. The expert shall request the court to approve the amendments. The court shall, before deciding on the application, notify all creditors who may be affected by such amendments; and authorise or reject them.

Invalidation of plan

The court shall decide on the termination of the financial settlement of the debtor in the following cases:
  • If it finds that the debtor's financial obligations cannot be settled
  • If it is impossible to implement the plan because the debtor ceases to pay any of their debts on due dates for more than 40 consecutive working days, as a result of their failure to meet these debts
  • If the debtor requests the court to terminate the execution of the plan before the settlement of financial obligations with creditors
  • If the period specified for the implementation of the plan expires without the settlement of financial obligations of the debtor
  • If the debtor fails to follow the plan.
The approved plan will be nullified if the court finds that the debtor is evading, or attempting to evade, fulfilling their obligations.

Secretary to liquidate assets

The court shall appoint a secretary if it decides to open the procedures of insolvency of the debtor and the liquidation of their funds.

Functions of the secretary

The secretary shall finalise the claims of creditors and prepare a report on the financial situation of the debtor and deliver it to the court within 10 working days from the end of the specified period, which is 20 working days. The court may extend it for a similar period once more.

Replacing the expert or secretary

The court may replace the expert or the secretary upon the request of the creditor or the debtor if it is proved that their continued appointment may harm the interests of either the creditors or the debtor or both.

Judicial decision on insolvency


The court shall decide on the insolvency of the debtor and the liquidation of their assets within 15 days from the date of receiving the secretary's report.

Time the debtor gets

The court may, upon the recommendation of the secretary and the debtor's request, before commencing the liquidation of the debtor's funds, decide to grant the debtor a term under the secretary's supervision of no more than three months. This is extendable by a similar period to reach an amicable settlement with the creditors, provided that this does not prejudice the interest of creditors.

Appealing the term

Any of the creditors may appeal the court's decision to grant the debtor a time for amicable settlement before the Court of Appeal. The appeal shall not result in the suspension of the proceedings and the decision issued in the appeal shall be considered final.

Penal provisions

Dh20,000 to Dh60,000 fine, imprisonment for debtors if:
  • They spend large sums of money in a speculative business that is not required
  • They purchase services, goods or materials for personal or domestic use
  • They gamble
Dispose of their funds at less than the market price

Dh10,000 to Dh100,000 fine, jail for creditors if:
  • They make a claim relating to a fake or sham debt against the debtor
  • They increase the debts to the debtor illegally.

Monday, November 18, 2019

New law to help people facing financial issues in the U.A.E

Debt-ridden individuals will be protected from criminal prosecution and instead offered support to repay debts within three years, according to a new UAE law.

The new law will protect debtors from legal prosecution, decriminalise the financial obligations of insolvent persons, and offer them an opportunity to work, be productive and provide for their families.
The UAE Cabinet has approved a federal law to regulate cases of insolvency aimed at enhancing the competitiveness of the UAE by ensuring the ease of doing business, creating favourable conditions for individuals facing financial difficulties and protecting those who are unable to pay their debts from going bankrupt.

The new law is part of the government’s efforts to ensure convenience for citizens and expat residents, and respond to their needs. The law will support individuals who are facing existing or anticipated financial difficulties, rendering them unable to settle their debts. The law will help them reschedule their debts and provide them with the opportunity to be granted new concessional loans.

In addition, the new law will protect the debtors from legal prosecution, decriminalise the financial obligations of insolvent persons, and offer them an opportunity to work, be productive and provide for their families.

The law, which will come into force in January 2020, will assist debtors in settling their financial obligations through one or more experts, to be appointed by the court.

The experts will coordinate with the debtor and creditors to come up with a plan, lasting no longer than three years, to settle the financial liabilities and fulfil all obligations stipulated in the plan.

During this period, the debtor will be prevented from taking any loans until the court decides, upon the request of the expert, the debtor or any of the creditors, that the implementation of the plan has been accomplished.

The law also contains special provisions that contribute to the swift completion of legal procedures and reduces the fees charged for rescheduling and restructuring the debts, with a view towards finding a fair compromise for both creditors and debtors.

The law not only contributes to enhancing the credit-worthiness of the country in the long run and its future growth perspective but also enhances the competitiveness and strength of its economy, thus ensuring an enabling environment that encourages entrepreneurship and provides favourable conditions for doing business.

The law, which complements existing financial laws, will contribute to increased transparency, in terms of civil debt repayment transactions, and will ultimately strengthen the UAE’s position as an ideal hub for investment, where the rights of all parties are guaranteed.

Wednesday, October 23, 2019

Residents can now apply, renew residency visa on Dubai’s official app DubaiNow

The immigration authority in Dubai is the latest government entity to offer its services at the touch of a button.

The General Directorate of Residency and Foreigners Affairs (GDRFA) in Dubai has recently launched services on the DubaiNow app to provide residents with the facility of applying, managing and cancelling residency visas for their spouse and / or children.

The DubaiNow app is an initiative carried out by Smart Dubai – a government entity charged with facilitating Dubai's citywide smart transformation, to empower, deliver and promote an efficient, seamless, safe and impactful city experience for residents and visitors.
Available services on DubaiNow

Utilities and bills

Pay your DEWA, Etisalat, du, Dubai Municipality bills. Pay your Dubai Police traffic fines. Top up your Salik, NOL, Dubai Customs Accounts Donate to Dubai Cares and Al Jalila Foundation.
Driving

Renew your vehicle registration. Top up your parking time. Explore street speed limits. View road accident notifications to plan your travel efficiently. Find your nearest petrol station and Tasjeel centres.
Public Transport

Track Dubai Airport flight departures and arrivals. Call a Taxi. View the Road and Transport Authority (RTA) metro map. Plan your journey to and from any point, and view the best routes.
Education

Find schools registered with Dubai's Knowledge and Human Development Authority (KHDA) and universities’ information and filter by name, rating, annual fees, curriculum and location.
General

View Dubai Calendar and Dubai’s daily weather conditions. Find your nearest ATM, and use the fastest route to reach Track Emirates Post (Empost) shipments and view shipping rates. Send your feedback or report complaints regarding any government department service in Dubai. Access Makani to locate specific buildings and addresses in Dubai, a service provided by Dubai Municipality
Islam

View daily prayer timings, find your nearest mosque and select the fastest route to get there.
Security

Report a violation to Dubai Police. Find the nearest Dubai Police Station and select the fastest route to get there. Inquire about the status of Dubai Court’s cases. Call emergency numbers like Dubai Police, Ambulance, Fire Department, and DEWA.
Business

Search for trade activity with the Department of Economic Development (DED). Track and renew trade licenses registered with the DED. Reserve a trade name.

Tuesday, October 1, 2019

Dubai Launched Virtual Commercial License for non-resident business people and freelancers

Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, announced the launch of the region's first 'Virtual Company Licence’.

The programme allows only verified non-resident individuals to register a company, and the owners of such companies have to be the nationals or tax residents of countries that have implemented the Convention on Mutual Administrative Assistance in Tax Matters and share tax information about their citizens and residents.
Eligible countries

The official website has a heatmap showing the eligible and non-eligible countries across the globe. India, Pakistan, Saudi Arabia, China, Russia, North Americas, South Africa, Nigeria, Cameroon, Uganda, Brazil, Argentina, Chile are some of the countries on the eligible list. Yemen, Oman, Sri Lanka, Thailand, Venezuela, Algeria, Egypt are on the non-eligible list according to the map online.

What does this mean?

The Virtual Company Licence will allow investors worldwide to do business in Dubai digitally without requiring residence and in accordance with the highest international legal standards. Virtual Company Licence owners can manage all their business-related activities, including document signing and submission digitally, and the signatures are legally binding in the UAE.

This initiative is aligned with the third Article of the 50-Year Charter of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which aims to build a ‘Virtual Commercial City’ in Dubai.

The Virtual Company Licence will enable freelancers and business people worldwide to have access to a regulated e-commerce platform and easily work with Dubai-based companies while also exploring new markets and investment opportunities digitally.

Saturday, September 28, 2019

Saudi Arabia launches tourist Visa to 49 countries

Saudi Arabia opened its doors to the world on Friday after it announced that tourist visas will be available to citizens from 49 countries.

For the first time, tourists can now apply for a visa through Saudi embassies and consulates across the world

Marking a milestone in Saudi Arabia’s history, Ahmed Al Khateeb, Chairman of the Saudi Commission for Tourism and Heritage (SCTH), announced the launch of the tourist visa for the Kingdom of Saudi Arabia at an event in Ad-Diriyah, a Unesco World Heritage Site in Riyadh.

Citizens from 49 countries will also be able to apply for an e-visa or receive a visa on arrival into Saudi Arabia. A dedicated online portal at visitsaudi.com was also launched and electronic kiosks are set to be available at airports to facilitate requests.

The following 49 countries will be eligible to apply for e-visas and visas on arrival:

  1. USA
  2. Canada
  3. Kazakhstan
  4. Singapore
  5. Brunei
  6. New Zealand
  7. South Korea
  8. Japan
  9. Spain
  10. Belgium
  11. Malaysia
  12. Austria
  13. Cyprus
  14. UK
  15. Croatia
  16. Estonia
  17. Andorra
  18. Denmark
  19. Germany
  20. Bulgaria
  21. France
  22. Hungary
  23. Czech Republic
  24. Holland
  25. Italy
  26. Finland
  27. Ireland
  28. Lithuania
  29. Greece
  30. Liechtenstein
  31. Monaco
  32. Iceland
  33. Malta
  34. Poland
  35. Latvia
  36. Norway
  37. Russia
  38. Luxembourg
  39. Romania
  40. Slovenia
  41. Montenegro
  42. Slovakia
  43. Switzerland
  44. Portugal
  45. Sweden
  46. Australia
  47. San Marino
  48. Ukraine
  49. China, including Hong Kong, Macau and Taiwan
The tourist visa allows for a stay of up to 3 months per entry, with visitors able to spend up to 90 days a year in Saudi Arabia. The visa is valid for one year with multiple entries.

The cost of applying for an e-visa or a visa on arrival is 440 riyals (around $117) plus VAT.

Saudi Arabia intends to extend the e-visa scheme to other countries in due course.

Sunday, September 15, 2019

New Law Regulating RERA part of the Dubai Land Department

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a new law regulating the Real Estate Regulatory Agency.

The new law issued, Law No. 4 of 2019, states RERA as a public institution, to come under the Dubai Land Department .

The new law includes restructuring the legal provisions of the agency, which was established pursuant to Law No. (16) of 2007.

According to the new Law, the objectives of RERA include contributing to the development of Dubai’s real estate sector within an integrated system of regulatory and monetary procedures and enhancing the sector’s contribution to Dubai’s economy.

Furthermore, RERA will work to provide a secure environment for real estate projects in order to protect the rights of developers and investors, implement new projects and programmes that enable them to explore new real estate opportunities and promote professional and ethical standards in the industry.

Pursuant to this Law, RERA is responsible for regulating and overseeing real estate development escrow accounts; accrediting financial institutions that are qualified to manage real estate development escrow accounts; and approving regulations that govern development, brokerage and management of real estate including joint property.

RERA also monitors real estate advertisements published in media outlets in the Emirate; develops and launches awareness programmes in collaboration with the Dubai Real Estate Institute to educate the public about their rights and responsibilities; and prepares and updates policies designed to balance supply and demand.

Under the new Law, the Chairman of The Executive Council of Dubai will appoint the CEO of RERA and will also issue the regulations and resolutions required for the implementation of the provisions of this Law that substitutes Law No. (16) of 2007.

Dubai Land Department will replace RERA in registering real estate rental contracts and regulating the relationship between property owners and tenants and any other matter related to real estate rental contracts.

RERA is the regulatory arm of the Land Department, where the department sets legislations to regulate the relationship between all contracting parties and to organises the exchange process of properties.

The department provides many services to clients in Dubai, extending its role to planning, organising and evaluating operations related to real estate license. It also monitor projects financially and technically to protect investors.

Thursday, August 15, 2019

Bounced cheque cases don’t end with prison term or a fine in UAE

Contrary to the popular belief that bounced cheque cases in the UAE can be closed by just paying a fine. It is within the rights of the victims to file civil cases against those who issue such cheques.

The legal order legislation approved by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, through Law No (1) of 2017, helps to improve the judiciary’s efficiency and reduces its workload while fast-tracking the litigation process in Dubai.

According to the Legal Order Law No 1 of 2017 which came into effect on December 2017, people with bounced cheques worth less than Dh200,000 can be punished by the prosecution without the case being referred to the judges, with the payment of a maximum fine of Dh10,000.

Judge Ayman Al Hakam of the Dubai Courts said the issuer of a bounced cheque should not think that he can pay the fine and get absolved, as the receiver of the cheque can assert his rights by going to the Civil Court.

“The issuer of the bounced cheque may think all that he needs to do is pay a fine if he can’t settle the case. But the victim can still exercise his rights by opening a civil case against the issuer of the cheque for the amount of the cheque plus compensation. Bounced cheque cases don’t end with paying the fine,” he noted.

The order fined people accused of issuing bad cheques for amounts not exceeding Dh200,000 between Dh2,000 and Dh10,000 depending on the cheque value. “But paying a fine is not the end to this case, the plaintiff can legally file a civil lawsuit against the person who issued the cheque to claim its value.” if the Civil Court rules in favour of the plaintiff, a 12 per cent interest rate will also be added to the value of the cheque starting from its issue date. The accused is obliged to pay the amount along with legal charges.

Fines for bounced cheques

    Bounced cheques worth Dh1 to Dh50,000: Dh2,000
    Bounced cheques worth Dh50,000 to Dh100,000: Dh5,000
    Bounced cheques worth Dh100,000 to Dh200,000: Dh10,000

In the case of Civil Case: If Civil Court rules in favour of the plaintiff, the accused could be asked to:
  •     Pay full value of the cheque
  •     Pay 12 per cent interest starting from the issue date
  •     Pay Legal charges
  •     Face travel ban
  •     Have assets frozen until final judgement

Monday, July 15, 2019

New Expat family sponsorship Rule in UAE takes effect


Now any resident in the country earning Dh4,000 without accommodation or Dh3,000 with company-provided accommodation can sponsor his family in the UAE, the Federal Authority for Identity and Emiratisation announced.

The decision permits a foreigner who is residing in the country, whether male or female, to bring family members (spouse and children under the age of 18 or unmarried daughters) to stay in the UAE, provided the family income (husband and wife) or one of them is Dh3,000 with company provided accommodation, or Dh4,000 without housing conditions, the authority explained.

The authority launched its services in line with the Council of Ministers’ Decision No. 30 of 2019.

The UAE Cabinet had earlier adopted a decision to amend provisions of the resolution on sponsoring of foreign workers to their families in the country.

According to an earlier statement by the General Secretariat of the Cabinet, the amended provisions indicate “income” as a requirement for sponsoring family members, as opposed to the previously listed “professions” which allowed workers to sponsor their families.

The amendment is in line with international developments and accordance with best practices, it added.

“The decision aims at enhancing family stability of foreign workers and social cohesion, as well as attracting highly skilled workers while maintaining a healthy balance between professional and personal life,” the statement continued.

Now any resident in the country earning Dh4,000 without accommodation or Dh3,000 with company-provided accommodation can sponsor his family in the UAE, the Federal Authority for Identity and Emiratisation announced.

The decision permits a foreigner who is residing in the country, whether male or female, to bring family members (spouse and children under the age of 18 or unmarried daughters) to stay in the UAE, provided the family income (husband and wife) or one of them is Dh3,000 with company provided accommodation, or Dh4,000 without housing conditions, the authority explained.

The authority launched its services in line with the Council of Ministers’ Decision No. 30 of 2019.


The UAE Cabinet had earlier adopted a decision to amend provisions of the resolution on sponsoring of foreign workers to their families in the country.

According to an earlier statement by the General Secretariat of the Cabinet, the amended provisions indicate “income” as a requirement for sponsoring family members, as opposed to the previously listed “professions” which allowed workers to sponsor their families.

The amendment is in line with international developments and accordance with best practices, it added.

“The decision aims at enhancing family stability of foreign workers and social cohesion, as well as attracting highly skilled workers while maintaining a healthy balance between professional and personal life,” the statement continued.

Tuesday, May 28, 2019

UAE long-term visa cost announced

Long-term UAE residency visas with 10-year validity, which were rolled out earlier this year, can now be obtained for as low as Dh1,150 while the five-year-visa will cost only Dh650, the UAE government announced.

According to eligibility criteria announced earlier, investors in public investment or senior professionals working with the investors, as well as exceptional talents and researchers in various domains, qualify for the 10-year visas.

Investors and professionals falling in the approved categories can apply to issue or renew the 10-year visa for Dh1,150 (Dh150 for the application and Dh1,000 for issuance). Family members of the applicants can also avail 10 years’ visas at the same cost.

Five-year visa

Meanwhile, the authorities also announced the cost of five-year visas, which will be issued for D650 (Dh150 for application and Dh500 for issuance).

Those eligible for five-year visas include investors in real estate, entrepreneurs, executive directors of entrepreneurs and retired expatriate professionals as well as their family members. Top achievers among students with exceptional talents and their family members can also get the five-year visas at Dh650.

Children sponsored by their parents after completing 18 years or after finishing high school or university can apply for a one-year renewable visa at Dh100.

Widows and divorced women and their children can also extend their one-year residency visas for Dh100. These two categories will be charged Dh100 for the issuance of the visa while no application cost will be charged.

The authorities also announced fee details for single and multi-entry visas for exceptional talents and researchers in various sectors. Both single and multi-entry visas valid for 180 days will cost Dh1,100 (Dh100 for the application and Dh1000 for issuance).