Non-Muslim expats require a will in U.A.E

Death is something we don’t usually think of, but something we should plan for, but rarely do. Friends Provident International (FPI), a financial institution, on Monday released a guide for non-Muslim expatriates on how they can take care of their families in the event of premature death in the UAE.

Titled ‘A matter of life and death’, the guide covers the 14 key issues for expatriates, should the worst happen.

Issues like frozen bank accounts when the account holder dies, leaving a will, and other issues most expatriates are not aware of are addressed to make it easier for families to handle the assets of the deceased.

Having a will for non-Muslim expatriates is important as there is no right of survivorship in the UAE. This means assets are not automatically passed on to the surviving joint owner upon the death of the other unlike in many countries.

When a non-Muslim expatriate dies, in the absence of a will, the courts will automatically apply Sharia to distribute assets.

If there is a will, inheritance will be governed by the person’s national law under the Civil Transactions Law of the UAE. Note that whether a will is present or not, fixed or immovable assets such as property in the UAE are still subject to Sharia.

Marcus Gent, managing director of the Middle East and Africa at FPI, said many expatriates are not aware of the repercussions of a death in the family when living in the UAE.

“While no one likes to think about dying — and indeed no one should spend too much time thinking about it — knowing that you have taken steps to ensure your family is taken care of, even if you’re not around, can be a great source of comfort,” Gent said.

Philip Cernik, chief marketing officer, Middle East and Africa at FPI, said life as an expatriate in the UAE can be fulfilling, but complications can arise when it comes to death unless plans are made accordingly.

This is where the checklist is helpful as it covers such matters as writing a will, how to register a death and how to arrange for the burial, cremation or repatriation of remains.

But writing a will is not for everyone, said attorney Barney Almazar, a licensed legal consultant and partner at Gulf Law.

“The writing of a will should not be seen as morbid, but as a wake-up call for residents who have substantial assets. So obviously, if you have valuables to pass on, write a will,” Almazar told Gulf News.

Almazar said there are many ways to write a will. A lawyer can draft a will for the testator in accordance with his or her country’s national laws, and the testator can have it notarized in his or her embassy and then attested at the Ministry of Foreign Affairs in the UAE.

Another option is to have it done at the Notary Public of the Dubai Courts for roughly Dh2,250.

For those who prefer wills drawn up in English, another option is available through duly licensed legal consultants registered with the Dubai International Financial Centre (DIFC) Wills and Probate Registry.

This may cost between Dh2,500 and Dh5,000 for a single will and from Dh4,000 to Dh10,000 for mirror wills.

With the DIFC will, you no longer need to have everything is translated into Arabic and heard using Sharia. You can simply proceed with your will in English and use the internationally recognised Common Law.

Points non-Muslim expatriates must remember

1) Leave a will.

2) Ensure your children are taken care of.

3) Outline who should inherit your property in your will.

4) Structure your bank accounts carefully.

5) Consider inheritance taxes in your home country.

6) Use a trust or beneficiary nomination for your life insurance.

7) Make sure you nominate beneficiaries for your end of service gratuity.

8) Check whether you qualify for death in service benefits.

9) Think about how your death would impact your dependents’ residency.

10) Think about your digital life.

11) Registering a death in the UAE and repatriation of remains. (Guide is on their website)

12) Burial and cremation. (Guide is on their website)

13) Prepare a checklist of people that need to be informed if you pass away.

14) Make sure you have adequate cover.

Bounced cheque can lead to freeze tenant's account in Dubai

The Rental Disputes Centre (RDC), the judicial arm of the Dubai Land Department (DLD), and the UAE Central Bank have signed an agreement that allows for freezing of the bank account of a tenant if his/her rent cheque bounce.“After the judgment is passed by the RDC, it will be informed to the Central Bank, which will pass the information to the banks. It could also lead to blocking of tenant’s bank account,” a DLD spokesperson said.

“This process will now take two days instead of 60,” the spokesperson added.

In a statement, the DLD said the aim of the MoU, signed by RDC Director Abdulqader Musa Mohammed and UAE Central Bank’s Assistant Governor for Banking Supervision, Saeed Abdullah Al Hamiz, was to create an electronic framework of cooperation to facilitate the implementation of decisions and judgments.

The proposals will speed up procedures and reduce transaction time from six months to two working days following the transition from paper-based to electronic systems. Both parties agreed to establish a platform utilising the UAE Central Bank’s existing Customer Information Request (CIR) system.

As per the agreement, the Central Bank will direct queries submitted by the RDC to enable the efficient execution of judicial committee decisions and judgments. These verdicts will be directly implemented by the banks, which will also provide immediate responses to enquiries.

RDC’s Mohammed said: “This move is consistent with our ongoing efforts to improve upon existing frameworks of cooperation with official bodies, with the aim of improving government procedures and promoting cooperation between all institutions.

“It is expected that this MoU will pave the way towards promoting transparency for all property transactions and procedures, benefiting all parties and guaranteeing the protection of their rights.”

The number of RDC judgments to be implemented for 2016 stands at 2,630, all of which will all now be rapidly implemented by the effective system set in motion as an outcome of this MoU, he added.

UAE Central Bank’s Al Hamiz emphasised the vital role that the RDC plays in supporting the stability of the national markets and in upholding transparency, providing greater peace of mind and ensuring a higher level of security for all parties involved in property contracts.

“The CIR system at the Central Bank has safeguarded stability across many of Dubai’s industry sectors and we are certain that this will also be the case for our cooperation with the RDC and DLD. Our plan will help the emirate’s real estate sector by maintaining the rights of all parties, ensuring justice through the fair and efficient application of the provisions of UAE law,” he said.

UAE set to have its first anti-corruption law to end financial malpractices and corruption

The UAE is set to have its first anti-corruption law as the second largest Arab economy is pushing ahead with plans to become more transparent and end financial malpractices and other offences related to corruption.

The state Audit Bureau will enact the Gulf country’s first anti-corruption law as per instruction by President His Highness Sheikh Khalifa bin Zayed Al Nahyan to fulfill the country’s commitment to UN charter on corruption.

“The Bureau will draw up an anti-corruption law and we urge all competent departments to join hands to ensure this law will see light and is implemented successfully,” the Bureau’s chairman, Hareb bin Saeed Al Amimi, said.

“This law will greatly support the UAE’s efforts to fight corruption and related offences, protect public funds and better utilize national resources for comprehensive development,” he told the semi-official daily Alittihad.

The Bureau is currently the UAE’s sole anti-corruption authority. Created by late President Sheikh Zayed bin Sultan Al Nahyan, it has played a major role in safeguarding public funds and curbing financial malpractices.The Bureau has recorded many cases involving misappropriation of federal finds since it was set up in the 1990s and has succeeded in recovering large sums of money wasted by some departments although it had not reported any arrests.But in a recent statement, the Bureau said it had detected more illegal financial operations at federal offices and informed the attorney general about such offences and those involved so they can be prosecuted.

“Over the past year, we have uncovered some financial abuses related to corruption and misappropriation of funds at federal level….several employees are involved in such operations and they are have been referred to the public prosecutor,” Amimi said in press remarks in 2011.

“We are pursuing our monitoring assignment at the instructions and with the support of the supreme authorities…we will exert strenuous efforts to preserve the public funds in line with the intensified measures undertaken by the UAE to combat all forms of corruption and other financial offences.”

In another statement earlier, the Bureau said it had unveiled major fiscal offences at federal government establishments involving nearly Dh300 million in fiscal year 2007-2008  but said all the funds had been recovered. It said many civil servants were involved in what it described as illegal financial practices.Officials said recently cases involving abuse of public funds have sharply declined thanks to intensified auditing and anti-corruption measures.

As a result, the UAE has been classified by several global rating and research organization as having one of the lowest corruption rates in the developing world. Other Gulf oil produces have taken measures to set up the war against corruption following the 2008 global fiscal distress.Saudi Arabia, the largest Arab economy and the world’s oil powerhouse, announced last year the establishment of an anti-corruption body on orders by King Abdullah following reports of widespread financial offences.

Other Gulf countries said they were taking steps to widen anti-corruption measures and boost transparency at public departments.“The instructions by the President to issue the anti-corruption law illustrate the leadership’s keenness to combat financial malpractices, which are alien to our society and to curb any practices that violate Islamic law,” Amimi said.ends

Prepaid mobile volumes poised to soar ME region to grow by 88% in five years

Prepaid Summit: Middle East 2012

Conference, Expo and Awards Networking Dinner,

March 21 2012

Westin Dubai Mina Seyahi Beach Resort & Marina, Dubai

 

• ·         Global mobile money industry reaches revenues of USD 1.6bn in 2011
• ·         60m internet users and 80m mobile phone users in MENA
• ·         65% below 25 years to drive the region’s digital and mobile prepaid growth

Dubai UAE, February 28 2012: Prepaid cards have found their niche in the Middle East as the region’s population embraces a digital and mobile lifestyle, according to Francesco Burelli, Partner at Value Partners Management Consulting.

Burelli, considered a global expert on cards, payments and transaction technologies, is slated to present an exclusive research on mobile money at the upcoming Prepaid Summit 2012.

He observed that strong year-on-year growth in the mobile money industry has global revenues pegged at USD1.6bn in 2011 alone.

“Looking at the Middle East, the mobile money sector, which includes mobile banking, is developing rapidly. Our forecast is that the trend will continue at an average growth of 88 per cent between 2009 and 2013,” he said.

“The nineties saw the mobile phone turn from a luxury to a mass market proposition and this has enabled the launch of additional mobile services, including financial services. Today, mobile is a mainstream distribution and business channel in the financial services landscape.”

He also noted that the Middle East region hosts a large unbanked population made up of immigrant workers and young citizens, suggesting that these two groups have different needs of the services that can be provided through mobile and prepaid technologies.

Meanwhile, James Ratcliff, Editor, Cards International and spokesperson for the Prepaid Summit in Dubai said: “With almost 65 per cent of the population under 25, the Middle East has massive potential in youth-led prepaid services, particularly in areas like online spending, events, and gift cards.”

According to Ratcliff, strong growth is also expected across travel, general purpose, remittance, payroll, and government payments sectors.

The third edition of Prepaid Summit: Middle East returns to Dubai on March 21 with Visa International on-board for the third time in a row as the Summit’s Title Sponsor.

The one day event will see more than 200 industry experts, speakers, delegates, and market analysts come together to identify steps to create revenue models and build successful prepaid products in region.