The UAE’s official retirement age increase by one year from February 2016

The retirement age for UAE nationals, which was 48 years, will be raised by one additional year, making it 49  with effect from February 28, 2016.“This increase is in accordance with Federal Law No. 7 of 2007, which clearly conveys the UAE Government's intention to bring about a gradual rise in the retirement age of UAE nationals,” said Liddington.“However, in order to be eligible to receive their full pension benefit, Emirati employees must also have accrued at least 20 years’ service prior to the date of their retirement,” he told.

He noted that the official retirement age for UAE nationals is set to go up further next year. “It is likely that there will be a similar increase (to a retirement age of 50) in 2017 although there has not yet been any official announcement in this regard,” he said.

The UAE’s General Pension and Social Security Authority (GPSSA) stresses that it is important to take the age requirement into account if employees wish to resign and retire.

There is a difference between pension eligibility and the date of pension disbursement.

“If the employee resigns after completing the service duration that makes him/her eligible for retirement, i.e., 20 years, he/she will still not be entitled to the pension unless reached 50 years of age,” says the GPSSA.

This, it said, is according to the amendment of the Law in 2007 which stipulates that this condition applies to the persons who have reached 40 upon the date of implementation of the amendment (February 28, 2007), and that “the age shall be increased year by year until reaching the age of 50.”

It adds: “Accordingly, the entitlement to the pension upon resignation requires that the insured had reached 48 years of age and that his/her service period is not less than 20 years, taking into account that, starting from 28th of February, 2016, the age requirements for pension entitlement will become 49 years of age combined with 20 service period.”

The Hadef expert highlighted that the gradual increase in retirement age underlines the government’s objective to increase the number of UAE nationals in the private sector workforce.

“The impending change is consistent with the UAE Government’s stated intention to increase the number of Emiratis working in the private sector and also to reduce the population’s dependency on the State by encouraging people to remain in work for longer,” said Liddington.

“Similar increases have been seen in recent years in other jurisdictions (e.g., the United Kingdom), where retirement age was reviewed as a result of increases to the average life expectancy and the economic benefits associated with delaying retirement,” he said.

Meanwhile, the retirement age for expats in the UAE is 60 years even as the UAE’s Ministry of Labour does accept requests for work-permits of individuals over the age of 60 years, up to the age of 65 years.

Expat employees, however, are not eligible for UAE pension, but they are paid gratuity, an end-of-service pay out

UAE labour card fines cut to Dh1,000 for 6 months,starting January 4 till June 30 2015.

The UAE’s Ministry of Labour has announced granting all employers a reduction to all issued fines, regardless of their amounts per employee, to Dh1,000 for a grace period of six months starting January 4 till June 30 2015.

“Electronic labour card offences have all been dropped to a Dh1,000 per employee,” said Humaid bin Deemas Al Suwaidi, Assistant Undersecretary of the Ministry’s Labour Affairs, said during the press conference which was held at the ministry’s headquarters on Sunday.

"The deadline include electronic labour cards that have not been issued or renewed until the end of this current month which mount to 100,000 electronic cards from 40,000 facilities, marking 13 per cent of the total registered facilities in the ministry," he said.

He pointed out that about 95,000 fines were issued for not renewing workers cards and 5,000 have been fined for entering the country without applying for new labour cards or for not cancelling their work permits, or reported missing from duty.

He revealed that fines have reached a total amount of Dh2.85 billion which will settle to around Dh100 million after the application of the decision. “This confirms the government's keenness to support employers and motivate them to settle those fines, which is a tool used by the ministry to control and regulate the labour market and provide protection to the workers," Bin Deemas added.

He explained that there are thousands of cards, of which some have fines reaching up to Dh53,000. “Now that big fine has been settled and reduced to only a thousand dirhams, this is an opportunity for all employers and business owners to settle those fines imposed on them and remove any restriction in their records at the ministry," Humaid said.

Offenders during the grace period, will be stopped from obtaining all kinds of labour permits until they settle all the above mentioned fines. “Starting July 2015 employers will be asked to pay the reduced amount of Dh1,000 fine per card in addition to another Dh500 for each month of delay,” Bin Deemas pointed.

Employment contract fines

Meanwhile, Humaid bin Deemas Al Suwaidi said stated that the Ministry of Labour, starting January 4, 2015, a Dh500 per month will be imposed on employers who fail to provide employment contracts to the ministry (signed by the employee) within a 60 day period starting from the entry of the employee to the country."

He said that the period of 60 days is sufficient enough for the employer to sign a contract with his new employee through Tas’heel service centres to properly document it and any excuses for delay will not be accepted.

He announced that there is coordination between the Ministries of Labour and Ministry of Interior to not to issue a visa, unless the employer signs that agreement during the specified period.

UAE Ministry of Labour will stop granting work permits to establishments not complying with judicial rulings

Saqr Ghobash, Minister of Labour, recently stated the Ministry of Labour will stop granting work permits to abstaining establishments if found not complying with final judicial rulings.

He pointed out that owners will be granted 30 days ultimatum to resolve court issues to avoid work permits blockage on their other facilities as well.
The suspension decision encompasses various types of work permits including labour recruitment, work permits and work transfers, family visa and temporary work permits and work permits for minors.

Humaid bin Dimas, Assistant Under-Secretary of the Ministry’s Labour Affairs, said, "The ministry has almost completed the data inventory of all abstaining facilities, in collaboration with the departments to ensure the smooth implementation of the resolution and achieve its desired goals."

"The suspension of work permits to abstaining establishments that refrain from implementing the final judicial judgments with regards to the labour issues, comes within the framework of country’s policies that are aimed at strengthening laws and respecting the verdicts issued by the judiciary system."

Bin Dimas noted, "The suspension decision supports the ministry's strategic plan to protect labour rights, and provide all forms of protection for workers, while ensuring the interests of employers are met in accordance with the national legislations, and in conformity with the international conventions and standards."

He pointed out that the decision, which was issued by the Labour Minister, constitutes one of the tools used by the ministry to enforce the adherence to the legislation, adding that the role of the ministry in labour disputes does not stop by just referring complaints not be resolved amicably between both sides to the court, but also contribute to the implementation of the verdicts.

It suspends the work permits for non-compliant establishments through cooperation with the courts.

"The Ministry of Labour’s policy in granting any facility a work permit for foreign manpower is based mainly on the extent of the employer’s commitment to labour laws by providing labour rights protection, providing basic living requirements and foremost pay them on time," bin Dimas said.

He also mentioned that the ministry will lift the suspension on the facilities after obtaining a request by the judge, stating that they have implemented the court verdict

20 second immigration clearence at all UAE airports within few months

 The smart gates now available at Dubai International Airport and Abu Dhabi Airport provide residents as well as visitors easy passing through the immigration formalities in 20 seconds approximately.

Registration for the e-Gate is required and it will save the details of the traveller in the system. Currently, registration in Dubai only provides access at Dubai’s airport, and registration in Abu Dhabi only to the airport in the capital.

This is soon to change, explained Saif Al Mazrouei of the General Directorate of Residency and Foreigners Affairs (GDRFA) at Gitex Technology Week.

“All e-Gates will be unified and all airports will work together, so an e-Gate user will only be required to register once.”

Currently e-Gate registration is available free-of-charge at the airports where the technology is available, at GDRFA service centers and at Dnata offices. The applicant needs to be able to present a valid passport and residency visa.

Once registered, the long queues at the immigration desk of the airport can be skipped, and the traveller can head directly to the e-Gate. Here, he will first be asked to present the passport, after which a first gate opens.

An eye scan will verify whether the person is indeed the same as the passport holder, and the passport validity will be checked. When both verifications are successful, the second gate will open and the process will be complete.

The current system is an updated version of the older e-Gate system, which required passengers to present an e-Gate card that had to be purchased.

Although the old e-Gate system was available at all airports, the new technology was only recently introduced as a trial basis, and will be expanded to all airports before the year-end.

Within the next couple of months, the latest e-Gate technology will become available at all airports in the country. Once a person has registered as an e-Gate user, this will provide access to e-Gates of all airports in the UAE.

Dubai Police radar limit on major roads

As traffic conditions continue to plague daily commuters across Dubai, the statistics paint a grim picture with excessive speeding resulting in 42 traffic accidents, resulting in the deaths of five people and injuring another 35 in 2013 alone.To avoid further confusion, Dubai Police released an updated list of speed limits on major roads across the emirate, along with the radar setting speed that will have you facing a heavy fine if crossed.

Major highways, including Sheikh Mohammed bin Zayed Road, Emirates Road, Dubai-Al Ain Road, Hatta Road, the Lahbab Road and the Aweer-Lahbab Road, all have a maximum speed limit of 120kmph.

The radar setting for these roads have been set at 141kmph, the speed following which your car will be captured on camera.


For a complete list of road speed limits, see the table below.

Can a boss check your personal e-mail? UAE Law

A British professional living in Dubai found out that his boss was reading his personal e-mails. He, inadvertently, saved the password to his email on his office computer, giving access to all his correspondence - whether personal, financial or professional - to his boss.

When he discovered this, the matter was taken up with the HR and the boss had to apologise to him before the team.

In an office, work email is probably your employer’s property, not yours. Most people also access their personal emails from the office computer. If they do so, all personal emails on a company-owned computer, phone or other device, may be available on the company’s server and can be accessed if somebody in command wants to.

Dubai property buyers' protection law Tanweer is ready and waiting for final approval

The Real Estate Investor Protection law, or ‘Tanweer’, as it is called now, is ready and awaiting clearance from higher authorities“Tanweer is ready we are just waiting for final approvals from higher authorities,” said Majida Ali Rashid, Chairwoman of the Real Estate Investment and Promotion Centre, Dubai Land Department.
“Tanweer is the first of its kind regionally and globally, the senior management has devoted considerable time and efforts in discussing its provisions with a large segment of workers in the real estate market and with consulting and legal firms to draft legal articles to reach the ambitions of the emirate in protecting investors,” Majida said.

She added: “This law will take full, complete and accurate inter legislative laws and regulations issued between 2003 and 2008 to ensure optimal application of those laws and legislations.”
Law allows full refund

In June 2012, the draft of investor protection law was released to get suggestions from industry participants.

The draft allows investors to get full refund if the developer fails to complete or handover a property within a certain timeframe or deliberately defrauds an investor or alters the specifications of the unit without obtaining requisite permission.

Investors can also claim compensation for breach of any warranty or undertaking contained in the contract for sale by the seller and the broker, misrepresentation by the developer or investor or broker, and specification in violation of the contract for sale after obtaining an expert’s report to that effect.

End-of-service benefits in UAE 'must be based' on 'last' salary

Companies operating in the UAE must give their outgoing employees end of service benefits on the basis of their last monthly salary and firms which fail to do so are violating the law, the Ministry of Labour has said.

The Ministry was responding to a complaint by an Arab female doctor who was sacked by her private employing medical company and given end of service allowances that include the monthly salary she was paid when she first joined work.

In her letter to the Ministry during an open-day review of public complaints and applications in Abu Dhabi on Monday, the doctor said her first salary was far below the wage she was getting in the following years after she was given massive pay rises.

“Companies calculating the end of service benefits on the basis of the worker’s first salary listed in the job contract despite changes in that salary are involved in an illegal practice,” the Ministry said in its response.

“Such benefits must be based on the last monthly salary paid to the worker, who should prove this by producing the last salary statement.”

The Ministry asked the doctor to contact its enquiry section to be informed on the legal measures she will take against her employers to force them to pay all her dues.

UAE Ministry of Labour stipulates salary for graduates in private sector not less than Dh12,000

A minimum salary rule will be applied by the Ministry of Labour to three categories of employees, provided they have a secondary school certificate or a higher educational certificate, local Arabic daily Al Khaleej has reported.

Ministry officials said the private sector workers are grouped into five skilled labour categories, adding that employees of the first category should be university graduates and should receive a minimum monthly salary of Dh12,000.

The second category include technicians who should receive not less than Dh7,000, while the third are skillful labourers who must be paid at least Dh5,000, provided they have a secondary school certificate.

According to the report, the latest ministry regulations followed requests by a number of   employees wishing to change their jobs for higher salary and other reasons.

The report states that many of the applications were rejected because they did not meet the necessary conditions. The Ministry has also said it had agreed on bringing labour from outside the UAE as long as all labour conditions are met.

The report quoted the ministry as saying it will not give new labour permits to employees in case the salary they will receive in the new company is less than what the ministry has previously decided.

In such a case, they will have approval six months after the cancellation of the old labour card.

To be given a labour permit, the qualifications of the employees should suit the nature of the job, it said.

community service’ sentences in UAE by early next year

The UAE will soon adopt the alternative penalties law, said Dr. Jamal Al Sumaiti, Director General of Dubai Judicial Institute as reported Emarat al Youm.

He said that the bill on alternative measures like ‘community service’ in cases of misdemeanors and minor violations instead of imprisonment, is being considered.

He added that a federal committee of advisers, experts and heads of public prosecutions in addition to lawyers, reviewed the draft law and decided that it can be applied by early next year at the most.

However, members of the Federal National Council say it will be more expensive for the government to apply it. Other members said that the imprisonment of short duration is useless and will never be a deterrent.

Dr Al Sumaiti said that the bill will be re-submitted to the Cabinet and then presented to the President His Highness Sheikh Khalifa bin Zayed Al Nahyan, for approval.

He explained that the alternative Penal Code cannot be applied on all convicts, or drug addicts as they should be placed in the center for rehabilitation.

The committee studying alternative punishments reviewed the experience of other countries to identify the best way of applying what fits the local environment and the values prevailing in society.

Earlier, the Cabinet approved the federal law of alternative punishments which lists  20 offences that call for community service ranging between 20 to  240 hours.

By applying the new code, the UAE will be the first among Arab countries to adopt such type of law.

Additional cost

Chairman of the Interior and Defense Committee at the Federal National Council, Dr. Yaqoub Al Naqbi, said that the application of the new law of alternative punishments will incur the UAE more money than they spend on regular penalties.

He added it would require the presence of security for monitoring and follow-up, as well as increase the possibility of escape by offenders.

He called for internal alternative measures such as establishment of workshops in prisons for such prisoners. He added such workshops such as carpentry for men, and sewing and embroidery for women, will help in rehabilitating the prisoners.

He called on investors to help implementation of such projects in prisons as they will profit from it. This will also reduce the financial burden on the government.

Good for UAE

Ahmed Ali Al Za'abi, head of the legislative committee in the FNC, said that short-term imprisonment is not working and is not a deterrent. On the contrary, it opens the opportunity to learn crime from hardened criminals in prison.

Al Za'abi demanded the abolition of short-term imprisonment entirely and its replacement with financial fines followed by deportation - this will help the punitive and correctional institutions.

Said Al Ghilani, a lawyer, said that the Alternative Penal Code would be more of a deterrent.

He pointed out that it will ease the problem of overcrowding in prisons, which often causes the transmission of diseases among prisoners.

Al Ghilani stressed the importance of alternative penal code which will prevent the mingling of prisoners with each other, which will prevent the development of the criminal inclinations to the offenders who were convicted in simple cases.

He added in simple cases offenders entered prison for the first time on issues such as the abuse of narcotic substances but later became drug dealers, after being educated in prison at the hands of criminals.

Al Ghilani stressed that it is possible for one policeman to control dozens of such offenders doing community service.

Can company enforce 1-year ban in UAE if terminates contract

The UAE Ministry of Labour has moved a case to its Legal Department to rule on a case which has raised the issue of whether a company that has cancelled the contract by issuing a termination letter can enforce a one-year employment ban on that employee.
A report in local Arabic daily Al Khaleej cited the ministry’s clarification made in a case where a female employee had been issued a one-year ban by her company.
The ministry stated that if the employee has violated the contract in any away, then irrespective of resignation or termination, a ban can be enforced.Despite the ministry ruling that in this case the ban was applicable, the details of the case raised many questions that needed clarification.

The ministry first clarified that an investigation into the case revealed that the company had issued her a termination letter, which she was using to get the ban lifted.
The employee claims that the end of her employment was signed off by the employer after only three months of her working there.The company has claimed that she violated the terms of the contract, which the ministry probe held as true and therefore, a ban in this case is fair.The final ruling, however, is now with the Legal Department of the Ministry of Labour.

Employers to bear the cost of Emirates ID card: Eida Chief

Although there is no legal directive that compels companies to bear the cost of Emirates ID, Emirates Identity Authority (Eida) chief says companies should take up the responsibility of paying the cost of ID cards for their employees.

“There is no legal directive on who should pay the fees for the ID cards. Since now the visa issuance is linked to the Emirates ID process, we expect companies to bear the cost. We are taking up the matter with higher authorities and are reviewing the matter,” Dr Ali Al KhouriDirector General, EidaHe added that a few public sector entities and private companies had already begun bearing the cost of the issuing Emirates ID for their employees.

“There are companies in both public and private sector that are now paying for the ID for their employees. We believe companies have to bear the cost of the ID as the card issuance is linked to visa.”

Employees in the public sector pay Dh300 (Dh100 per year for three year visa) for the card, while private sector employees pay Dh200 (Dh100 per year for two year visa) . The other charges (typing and admin) total to Dh70.

How an individual can be deported while facing travel ban

Judge Ahmed Ibrahim Saif from Dubai Court

Judge Ahmed Ibrahim Saif said an individual is deported when the court issues an order of deportation against him and this rule becomes final and enforceable.

He added that if the accused has exhausted all appeals, as happens mostly in drug and sexual assault-related cases, it leads to deportation.

He pointed out that individuals are banned from travelling when any party fails to honour their commitment. For example, fails to pay debt to individual or bank.

In cases where the creditor opens a lawsuit against the debtor before the court, in such a case the creditor is entitled to request the judge to prevent the debtor from traveling.

He added that in case all the travel ban conditions were met (such as the fear of the debtor fleeing from the country), the judge may issue a ban to stop the debtor from traveling.

In such a scenario, the debtor’s passport is taken away and the name of the debtor is included on the travel ban list.

Special committee set up for such cases:

Judge Ahmed Ibrahim Saif disclosed that the Federal Committee and the local committee have faced such dilemma where the clauses of the Federal Procedures Act stressed on the establishment of a panel to adjudicate the problem.

Due to the presence of local courts in Dubai, in 2007 a new committee known as the Committee of Deportation and Travel Bans was established to deal with such cases.

He added that the committee consists of the chairman, two senior police officers and two judges.

He pointed out that the committee holds two monthly meetings and the second meeting is always set aside for decision-making.

The Committee intervenes when:

The committee intervenes after the person who has received both the orders completes his prison term and it is time for him/her to be deported.

In such a case, the sentenced person has to submit a petition to the prison administration and the matter is transferred to the committee for consideration.

The standards followed by the Committee:

There are legalities involved in the implementation of deportation if a creditor requests the imprisoned person to be banned from travelling.

The other conditions to be taken into account in such a situation is the value of the claimed amount and the extent of benefit to be accrued by allowing the person (debtor/accused) to stay on in the UAE.

Communication with the committee:

The prisoners communicate with the committee through the legal measures where they can submit a petition to the prison administration, then meet with members of the committee.

The meeting involves discussion on the possibility of making a settlement with the creditors to repay the debts, or through an agreement concluded between one of his siblings, and between the creditor.

Creditors not serious:
Judge Ahmed Ibrahim Saif disclosed, “Many of the creditors who opened files against the debtors to ban them from travelling are not serious in pursuing their claims.”

He added that while applying for travel bans, they submit documents which confirm their rights, but after receiving decision in their favor, they do not follow up on the necessary procedures.

He added these measures are there so that they can recover their money. In order to claim what is rightfully theirs, they need to open a file to recover their debt during a period of 8 days set by law, or open a file to implement the travel ban, within a period of 30 days specified by law from the date of issuance of the ban of travel.

He said that such negligence by the creditors compels the committee to support deportation of the accused.

Recommendations:

Judge appeals to Emiratis and residents to abide by the law and to communicate with the creditor, and attend the meetings of the civil cases filed against them, so as not to get tangled in a similar case

No bank loans for UAE residents without Emirates ID card

The Emirates Identity Card could soon be one of the must-have documents when applying for a loan or to get other bank services and facilities as well.
According to a report in Emarat Al Youm, citing, a UAE Central Bank circular, all banks and finance companies and houses operating in the country are to request the Emiartes ID of a customer applying for banking facilities.
The report says the circular, issued by Saeed Al Hamiz, Assistant Governor, UAE Central Bank, specifies loans will not be granted without the national identity card.
The newspaper adds that the circular was issued at the request of Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Chairman of the Federal Credit Bureau.
A central bank official who asked not to be named said that under this circular individuals will not be able to get any loans or financing without providing the national ID card.
The official clarified that the customer's passport is no longer sufficient to accomplish bank transactions.

The Emirates Identity Authority (Eida) has tied up with a local bank to experiment the use of ID cards in banking transactions.
According to a report in the Arabic daily ‘Emarat Al Youm’, the authority helped a client open an account with a local bank.
The transaction was quicker by at least 20 minutes, said Dr Ali Mohammed Al Khouri, General-Director, Eida.
The bank staff was able to quickly download all necessary client information from his ID card, thereby saving time. The process is also safer and more accurate, he added.
It is now up to the UAE Central Bank and individual banks to decide how to use ID cards to enhance their services, he said.
Dr Al Khouri said ID cards could also be used to deposit and withdraw money in future.

At present, Eida is also in the process of linking up with all government institutions.

Two-month amnesty to illegal residents in UAE

 Abu Dhabi: A two-month amnesty has been granted to illegal residents, allowing them to leave the country without penalty or regularise their visas, a senior official said on Tuesday.

 Major General Nasser Awadi Al Menhali, Assistant Undersecretary for Naturalisation, Residency and Ports Affairs, told a news conference: “Illegal residents who overstayed their visas can visit residency departments across the UAE to obtain outpasses and leave the country without penalties, or regularise their visas, after payment of fines between December 4 and February 3.”

Al Menhali stressed the amnesty, approved by the Cabinet of Ministers in April, covers only those who overstayed their visit or resident visas, but not infiltrators, who he said will be treated like criminals.

He encouraged illegal residents to come forward and take advantage of the amnesty as soon as possible and not to wait for the deadline or miss it, “because there will be no extension or exception whatsoever of the amnesty scheme”.

Major General Al Menhali added a resident who overstayed his or her visa can come forward with their passports and air tickets to obtain an outpass, get their fines waived, and leave the country.

 Passports withheld by residency department in absconding cases, will be handed over to their holders, he said.

He said those who wish to regularise their visas have to pay all fines accumulated as a result of their overstay of their visas, warning illegal residents who fail to make use of this amnesty that from February 4 they will face the full force of the law.

 “This is the fourth amnesty scheme and we are hopeful, illegal residents who did not avail of the previous schemes will do so this time.”

 As many as 342,000 illegal immigrants took advantage of the last amnesty declared in 2007.

Official statistics showed that 341,958 illegal residents availed of the amnesty by either legalising their stay or by leaving the country.

While 95,000 illegal workers legalised their status, nearly 175,000 left the country.
Around 300,000 illegal immigrants left the country under the second amnesty which ran between January and April, 2002.

In 1996, about 200,000 illegal residents left the country under a six-month long amnesty.

The move to allow passage to illegal foreigners stuck in the UAE for violation of various immigration rules and regulations is meant to clear the country of thousands of them but Major General Al Menhali declined to say how many illegals were expected to make use of this amnesty or the statistics of those already arrested since the last amnesty.

Major General Al Menhali said that illegal foreigners arrested are also granted this amnesty and allowed to leave the country as long as they do not have any pending cases.

“Illegal foreigners will be issued outpasses after any pending cases or dues are settled,” Major General Al Menhali said.

Al Menhali said residency departments across the country will be organising several awareness campaigns and press briefings to educate the public about the amnesty and the need for illegal residents to take advantage of this gesture.

For any information about the amnesty, people can call toll free telephone number 8005111. It will be a 24/7 service in Arabic and Englis

Traffic offenders not allowed leaving UAE

Dubai Police has said traffic offenders with huge fines will not be allowed to leave the country until they pay their fines.

“She will not face any case, but her vehicle will be in detention and her file will be frozen, and she will not be able to leave the country,” the police said when asked by Emirates 24|7 on what possible action will be taken against the Bangladeshi woman who has accumulated Dh201,140 in fines for 257 traffic violations.

The police, however, clarified that the total amount can be paid in installments.

Colonel Saif Muhair Al Mazroui, Acting Director, General Department, Traffic, Dubai Police, said total traffic fines by 17 erring motorists in the emirate hit a whopping Dh2.9 million, with the list including 80 per cent Emiratis, including three women and five men.

A Syrian woman was second on the list of violators owing the department Dh186,900 for 288 violations, followed by an Egyptian recorded 236 violations - majority of them for speeding - with Dh169,420 in fines.

An Emirati woman in sixth place has a total of Dh134,160 and 218 violations, while an Emirati man accumulated Dh129,210 for 204 violations.

Earlier this year, it was reported that Dubai was planning to introduce a “white points system” involving incentives for drivers who respect traffic rules within its ongoing fight against traffic law abuses.

The novel project will run parallel to the existing black points system enforced by Dubai and all other emirates in line with a federal law intended to curb road accidents and deter reckless motorists.

“Dubai’s traffic police will enforce the new white points system this year. It includes offering incentives for committed drivers and cutting black points.

“It also involves discounts coupons at major shopping outlets, gifts and possibly reduction of fines for those who show respect to traffic rules,” Dubai’s traffic police chief, Major General Mohammed Al Zaffin, had said at the time.

Brokers to register properties by end of August-Dubai's Rera launches Simsari.ae

Dubai’s Real Estate Regulatory Agency (Rera) has ordered approved property brokerage firms to register all their available properties on Simsari.ae – the region’s only authenticated and trusted multiple listing service – by August-end, face penalties, Emirates 24|7 can reveal.

In a notice sent to brokerage firms on July 19, the regulatory agency said: “We urge you to register on Simsari. Kindly note that the deadline for registration is August 31, 2012, and will be mandatory to use starting from September 1. Consequently, all Rera approved- brokers who fail to register on Simsari before the aforementioned deadlines will be penalised.”

The notice further said: “We believe that top performing companies such as yours along with Simsari, will shape and regulate the industry, establish transparency in the real estate market and align the relationship between owner and real estate broker.”

Real estate experts believe the move will reduce the number of “ghost” listings, common in the UAE, and, more possibly, the agency being able to limit listing of one property with not more than three agencies.
As per a Rera regulation, a seller can list his property with only three brokerage firms.

Unfortunately, sellers here try to list their property with numerous brokerage firms and at varying prices.

This website had reported in May 2011 that the Dubai Land Department was planning to launch Simsari.

At the time, Khalifa Al Suwaidi, Chief Executive Officer, Emirates Real Estate Solutions, had said: “The website is ready. Only listed brokers will be allowed to register properties, be it off-plan, or completed units for leasing or selling.”

He had said the listing on the website would initially be free of charge and renewable every 30 days.

Simsari was an online real estate portal, which was founded in 2006 by two Dubai-based companies - Tamweel and Tejari. The brand has subsequently been acquired by the Land Department.

In order to bring transparency in the market and control broker activities, Rera recently unveiled plans to fine brokers instead of their brokerage firms if the former was found to have misled investors, co-operated with unlicensed brokers or made phone calls to their clients to promote/advertise a project.

Earlier this month, Rera imposed fines totaling Dh900,000 on 22 real estate companies and brokerage firms during the first half of 201 for violations such as hiding information from investor; co-operation with unlicensed brokers; failure to maintain privacy of firm and client; using telephone calls for promotions and advertisement purposes without obtaining official approval and arranging deals without the knowledge of their accredited office.

In addition, Article (34) of the draft law on Dubai real estate investor protection, states an intending investor shall be entitled to terminate a contract for sale if it is proven that the seller or the lessor or a broker acting on his behalf has deliberately concealed any essential information that is likely to cause harm or loss to the intending investor.

Under Article 37 of the draft the intending investor will be entitled to recover compensation from whoever of the developer, investor or even broker has caused the loss.

UAE Central Bank issues New loan rules

The Central Bank has finally issued unified forms for all types of bank loans, ending years of controversy over such contracts and persistent complaints by borrowers, a Dubai-based newspaper said on Wednesday.

The three key forms cover personal loans, car financing and overdraft and they are all binding to all the 51 banks and other financing firms operating in the second largest Arab economy, the Arabic language daily Emirat Alyoum said.

Banks can claim immediate payment on loans if:

1. The debtor is terminated for any reason from his/her work.
2. Transfer of the monthly salary of the borrower or any part of it to another party without the written consent of the bank.
3. Breach of commitments or obligations which have been included in the contract of the loan.
4. Failing to pay three consecutive installments or six non-consecutive 
5. in addition to the invalidity of customer data.
6. Borrower leaves country permanently.
7. Death of borrower.

Bank has the right to obtain an insurance policy on the life of the debtor in case of disability and should be paid by the borrower himself. Bank can use revenue of policy to pay out the loan, to keep the interest or any other amounts due on the shoulders of the borrower or his heirs.

Interests and Commissions

Banks will have the right to calculate interests and commissions on average daily balance of amounts withdrawn and outstanding on the loan from the date of withdrawal based on the number of actual days elapsed and on the basis that a year is 365 days.

These interests are added to the loan balance so that it should be paid with the monthly instalments.

Commissions and fees and expenses incurred on the loan, according to UAE Central Bank regulations, may be amended from time to time.

Car loans

Bank should be informed of specifications of the vehicle and the value of payment in addition to the interest rate.

Insurance company must be approved by the bank.

In case of failure of the borrower to renew insurance policy, renewal fees will be added to the loan.

The forms, which will be enforced shortly, have been prepared following many rounds of negotiations and consultations between the Central Bank and the Emirates Banks Association, which groups all banks in the UAE.

The new contracts authorise banks to ask borrowers to ensure all borrowings are covered by a life insurance or a disability insurance policy, in some cases to guarantee the loans would be paid back as the lender could use its value to regain the rest of its funds.

The paper said the forms must include all details about the size of the loan, maturity, and interest rates while borrowers must submit a letter from the employer committing him to have his salary and end of service benefits transferred to that bank during the loan term.

It said the Central Bank defined seven cases in which the loan period should suspended and payment must be made immediately, including termination of services of the borrower, transfer of the salary to another bank without prior approval of the bank, violation of any loan terms by the borrower, defaulting on payment of three successive installments or six non-successive installments, presenting false data by the borrower, death of the borrower and the client’s departure from the UAE permanently.

As for overdraft, the new contract allows banks to cancel or reduce such facilities any time they deem necessary and to ask borrowers to pay back at a date determined by the lender provided the borrower is given 30-day notice.

According to the paper, the three loan forms clearly define the relationship between borrowers and lenders. One term stresses that the bank must not open an account and agree to give a loan before the borrower submits all the documents requested by the bank. Another term authorizes banks to close the account of borrowers in case they give cheques that bounce.

The forms also permit banks to provide all necessary information about the borrowers and their accounts to courts or other competent departments.

Reduced working hours for all during Ramadan: Ministry of Labour

The Ministry of Labour on Wednesday announced that working hours will be reduced by two hours during the holy month of Ramadan.

The ministry said in a statement that official working hours have been reduced to six hours per day or 36 hours a week. This rule applies to all residents of UAE irrespective of their religion.

However,  labourers will continue to avail noon break and those violating the rule will heavily be penalised, the ministry said.

The Ministry of Labour also said that the those employees doing overtime will be paid 25 per cent of their basic salary for t day time work and 50 per cent for  night time duty.

A circular issued last year by the ministry had said that work at Federal ministries and departments will be from 9am to 2pm during Ramadan.

Earlier this month, the Islamic Crescent Observation Project (ICOP) announced that most Islamic countries may begin the Holy Month of Ramadan on Saturday, July 21st after moon sighting.

Mohammad Showkat Awda, chairman of the project said most Islamic countries have started the month of Sha'ban on the same day in a rare phenomena, therefore these nations would start monitoring the Ramadan Crescent on Thursday, July 19 which is Sha'ban 29 however the moon day would not be possible in all northern and some middle regions of the world.

He noted that the new moon of Ramadan in the rest of the Arab world will not be possible on Thursday due to the reason that moon will set along with sun or after a few minutes which doesn't not allow to see the moon even with the powerful astronomical telescopes, and so these regions should complete the month of Sha'aban with 30 days and the beginning of Ramadan would be on Saturday July 21st.

Awda said that Ramadan could be on Friday 20 of July in both Saudi Arabia and Egypt, because they are adopting the sighting of the moon on Thursday.

Abu Dhabi eases rent contract

Abu Dhabi appears to have relaxed rules stipulating expatriates seeking to bring in their families must submit a tenancy contract in their name.

Some expatriates who applied this week for residence and visit visas for their families presented tenancy contracts in other names but they were accompanied by the original tenant for verification.

A Syrian man who applied for a residence visa for his wife and two children was first asked to submit a tenancy contract in his name. But he told immigration officials that he has just rented an apartment temporarily for three months and that the contract was not in his name.

They then asked him to bring that contract and the tenant who rented his flat out to verify that the applicant would be staying in that apartment during that period.

“The tenant came with me and told the immigration employee that I have rented his apartment for three months…he showed them the contract in his name and signed a paper…the application then went through,” Maher Rushdi said.

Abu Dhabi began last week enforcing new rules requiring foreigners to present a tenancy contract or utility bills in order to be able to get residence or visit visa for their families. A legislation covering bachelors was suspended temporarily early this month to allow for smooth implementation, including the need to attest the rent contract at the Municipality to prevent cheating or manipulation.

Immigration officials said the suspension has triggered a rush by hundreds of expatriates seeking to skip that rule before it is enforced again.

“I went to the immigration department yesterday and applied for a visit visa for my wife and her father…I was turned away and asked to bring a rent contract,” said Imad Zaatari, an Abu Dhabi-based mobile phone salesman.

“I went back and gave them a contract in the name of my friend, who I am sharing his accommodation…my friend went with me and confirmed that I live with him…one employee rejected the application but I went to the officer in charge and it was accepted…but I was told that next time I have to submit a tenancy contract in my name.”