Visa processing Charges U.A.E

 The Visit Visa applies to tourists who wish to spend more than 14 days in UAE, those coming for family visits as well as those on long-term business visits. It requires the sponsorship of any UAE resident or any company or hotel licensed to operate within the UAE.

Brigadier Dr Rashid Sultan, a spokesperson for the UAE Ministry of Interior, said the ministry was re-implementing the decision No 337 of the year 2004 to enable all those who have visit visas to get an extension.

"All companies and visitors should submit applications and transactions before the expiry date of the visa period to avoid violations. The immigration services will be provided at all UAE port of entries and immigration offices," he added.

The official said the new rule is applicable for all entry permits. These permits would include transit visas, short-term (one month) and long-term visit (90 days) visas, student visas, visas for medical treatment and residence visas.

In the previous visa requirements, visit visa holders needed to exit the country after the expiry of the visa term and had to stay out of the country for at least a month before being able to re-enter on another visit visa.

He said that amending of visa status will be done electronically and without complications as part of the new procedure. People do not need to the leave the UAE, but they can amend their visa status and pay the required fees in order to facilitate the transactions for visitors and residents and to save money and time.

Obaid bin Suroor, Deputy Director of General Directorate of Residency and Foreigners' Affairs in Dubai, said that all the decision issued by the Minstry of Interior will be implemented by all immigration departments.

Charges for Visa Processing:

• Transit entry            Dh165
• 30-day short visa   Dh370 + Insurance for (First degree relatives Dh1,000; Second degree Dh2,000)
• 90-day long visa     Dh700 + Insurance for (First degree relatives Dh1,000; Second degree Dh2,000)
• Entry Permits for medical treatment    Single vist Dh700; Multiple visits Dh1,550
• Entry permits for study    Depends on university or college
• Entry Permits for exhibitions and conferences          Depends on travel agency
• Tourist Visas            Depends on travel agency
• GCC resident entry permit           No fees
• Work- related entry permit for 14 days          Dh370
• Work- related entry permit for 90 days          Dh1,320
• Entry permit for work 2 years    Dh350
• Entry permit for residence 2 years       Dh270 (Dh370 express service)
• Entry permit for work 3 years    Dh470 
• Entry permit for residence 3 years       Dh370 (Dh470 express service)

The UAE has revoked the condition of a one-month gap for renewing visit visas. People on such visas will no longer need to exit the country to get an extension of their stay here. They can now do it by paying Dh570 and stay for a month more without exiting the country.

Dh100,000 fine for credit card surcharge

Ministry of Economy decided to impose fines up to Dh100,000 on commercial facilities and outlets that impose a surcharge on consumers using credit cards, reported 'Emarat Al Youm' newspaper.

“The decision is in line with the new amendments to the Consumer Protection Act approved by the Council of Ministers,” said Dr Hachim Al Nuaimi, Director, Department of Consumer Protection, MoE.

He was speaking at a meeting with representatives of economic departments and local municipalities on Monday, which was convened to to implement decisions of the Supreme Committee for Consumer Protection.

The decision curently applies to purchases of goods by individuals; it will be extended to different kinds of services later, he added.

Al Nuaimi said commercial foundations and retail outlets charging extra on credit cards will be fined between Dh5,000 and Dh100,000, in accordance with the Consumer Protection Act as well as taking into account factors determining the value of the violation and the number of times the party has erred.

The meeting agreed to form working groups to discuss the mechanisms of implementation of the resolution and to increase customer awareness.

Al Nuaimi urged consumers to defend their rights and file complaints when they see violations of their rights.

medical examination for licence seekers who are 60 years and above

Roads and Transport Authority is planning to introduce medical examination for licence seekers who are 60 years and above. This includes even those who wish to renew their expired licence. The move aims to ensure drivers are healthy and free from illnesses, reported 'Emarat Al Youm'.

Ahmed Bahrouzyan, Executive Director of the Licensing Department, RTA, said: "RTA will undertake a comprehensive study to modify and develop procedures for obtaining driving licence in coordination with the Interior Ministry and the Dubai Health Authority (DHA)."

RTA has not yet determined the age category where the new procedures will be applied, but in all probability it would cover those above 60 years, he added.

He said the body meets regularly with the Dubai Health Authority, to identify the types of medical examinations and age groups that should be subjected to tests as well as to identify chronic diseases that would aggrevate due to driving.

Bahrouzyan said the RTA seeks to implement best global practices in the service of security and safety on the roads.

He added the RTA is currently considering the application of a British study related to drivers of commercial vehicles and heavy vehicles to transport hazardous materials. It would later be submitted to the DHA to be discussed and modified to implement in the region.

The licencing department issued 33,142 licences in the first quarter of this year, he said and added that the success rate in obtaining driving licences witnessed a significant increase of 29 per cent.

RTA is seeking to develop its services to ensure the success of raising the proportion of applicants for driving licence by 35 per cent.

credit card surcharge ban from July 1-UAE gov.

Ministry of Economy has warned retailers in the UAE to stop charging fees on credit cards from July 1.

Sultan bin Saeed Al Mansoori, Minister of Economy and Chairman of the Supreme Committee for Consumer Protection, headed the second meeting of the committee for 2011 which passed resolution prohibiting retailers from imposing charges on credit card usage as commission.

The committee also agreed on liberalising trade of 15 new products including detergents and washing powders, dairy products and juices, drinking water, livestock, feed, fats and oils, and the list will be sent to the cabinet for approval.

”This is strategic to reduce monopoly and exploitation, and will enhance market competitiveness,” said Al Mansoori.

The committee reviewed a report on the advertisements for fast food outlets, and recommended that awareness measures must be initiated to ensure that customers are not misled by catchy advertising and resort to unhealthy eating, especially of junk food.

The committee also reviewed a report on the status of the Call Center in the Consumer Protection Department, and another on the difference between the prices of key food items sold at cooperative societies and major retail outlets.

The committee discussed the Electronic System for Goods Monitoring which is expected to be operational during the second half of 2011. Currently, the ministry is undertaking a pilot phase with some commodities and the results will be generalised for other goods. The new system works through electronic links between the major trading centres and UAE customs ports, and can monitor the prices of 200 commodities on a daily basis.

The committee discussed a report on the increase of prices at gas stations and recommended to open channels of communication between the Ministry of Economy and all petrol stations with the participation of representatives from economic departments to identify the reasons for rise in price.

The committee was briefed on a proposal to reduce rental fees at retail outlets and cooperative societies. The committee recommended the distribution of marketing margins equally between retail outlets and consumers.

Eida to introduce online ID registration soon

Applicants seeking to register in the UAE national identity could fill the needed form at home and avoid standing in long queues at packed registration centres when authorities introduce an online service soon.

The Emirates Identity Authority (EIDA), which oversees the landmark ID project, said it was in the process of introducing such online service that will allow all applicants of filling the ID form, paying fees and getting an appointment for finger printing without having to go to registration centres.

“We are developing an electronic ID form so applicants themselves can fill it online without having to deal with registration centres…the form will be available online shortly,” EIDA director general Ali Alkhouri told Emarat Alyoum daily.

“Once this service is enforced, applicants will only have to fill the form online though EIDA’s website, upload all needed documents and pay fees online…they then can get an appointment for finger printing online.”

Khouri said existing authorized registration centres would remain in operation for those who do not wish to have their applications processed online.

He told the paper the online service would be introduced on a limited trial basis in September before it is fully enforced by the end of the year.

“This is a strategic move as the new service is expected to largely increase the rate of registration…applicants will be able to register online at their homes or offices without having to wait for long periods at registration centres.”

Khouri said the new service would cut fees paid by applicants by nearly 40 per cent as they will not be required to pay up to Dh70 in fees for registration.

Dubai plans to introduce a new residence visa system for property owners

Dubai plans to introduce a new residence visa system for property owners, reported 'Al Bayan' newspaper.

A government official was quoted as saying "authorities are discussing ways of granting owners of properties in the emirate, residence visas based on transparent rules and legislation".

The new rule is expected to boost the realty sector. However, realtors are wary about the costs involved. As some experts say the costs involved in setting up a company, including mainteance and ownership fees, to register a property under it could go up and this could put off buyers, reported 'Gulf News'.

Yet others believe the new rule would attract foreigners coming to the UAE for visas, thereby, boosting the emirate's realty sector.

The official said "the new mechanism suggests that property owners to establish a company in the free zone and then the company will own the property which will let the property owner who owns the company to obtain a residence permit on the basis of ownership of the company, not the property."

However, property owners must meet specific requirements to be able to establish the company. The official added that the residence visa will be valid as long as the ownership of the company is valid.

Some analysts say the law though will help the real estate market, it will not solve all of the real estate problems in Dubai.

Anti-tobacco law approval by cabinet soon

Dr. Hanif Hassan Ali, UAE Minister of Health, and Chairman of the Health Council, emphasised that the council continues to study and examine the required recommendations to raise the health services in the UAE and achieve the strategic national goals and objectives.

"The council has lately examined the recommendations to develop medical practices, serve the ambitions of the medical staff and health services providers and care for the patients of all public and private health facilities in the UAE", said the minister while chairing the Health Council meeting in Dubai.

The meeting made the final review the anti-tobacco executive by law of the federal decision No. (15) of 2009 and decided to present it to the cabinet for approval.

The council also discussed the health survey for the emirate of Dubai and the unification of the medical staff licensing system in addition to the project of the health research handbook.

The Minister stressed the importance of speeding up the unified system for medical licensing to begin with doctors and followed by the licensing of other establishments and resources.

Another meeting will be held soon with representation from the health authorities in Abu Dhabi and Dubai.

The health council also approved the health research handbook to be printed and distributed to all the competent authorities and organizations as a guideline to determine researches and statistics in the healthcare field in the UAE.

Dr. Salem Al Darmaki, Acting Undersecretary of the Ministry of health and member of the health council, said that the council has conducted several studies which led to a number of ministerial and cabinet decisions about certain health programs and projects.

Eida cancels thousands of ID applications

The Emirates Identity Authority (Eida) last week cancelled 5,000 applications of candidates who missed their second consecutive registration appointment.

According to a news report in Gulf News, the application fee of such defaulters has been forfeited by the authority. “The cancellation of application means the entire pre-registration process has been cancelled; when they do the process again, definitely they have to pay the fee [again],” Dr Ali Al Khoury, Director General of Eida, has been quoted by the daily today.

According to the official, Eida gave the defaulters a second chance by rescheduling their appointment after applicants failed to turn up the first time. Those who missed the second appointment too will now have to go through the whole process once again, he said.

Al Khoury said the authority had to take strict action because many people fail to turn up for registration on appointment. “They waste their time and others’ too,” he said.

UAE ID card is must for all children

However, kids are not required to be present in person for the registration National Identity Cards for children under 15 years of age has been made mandatory.

The Emirates Identity Authority (Eida) has confirmed that ID cards will henceforth be mandatory for children under 15, apart from them being registered in the population register, reported 'Gulf Today'.
Until now children only had to be registered in the population register. ID cards were not a necessity.
Eida will shortly restructure the procedures of registration in the population register and issuance of ID cards for kids at the designated typing centres.
However, children will not be required to be present in person for the registration, Eida added.
Documents required include: Valid passport; valid residency; coloured photograph with light blue background (size 3.5x4).
The registration fee will be Dh50, in addition to Dhs70 services charges, Eida said.

How Expatriates protect their money and property and distributed after his or her death in UAE

"Since the UAE is a Muslim country, all courts adhere to Sharia laws in regard to inheritance in case of no wills. However as a result of the Personal Affairs Law (No 28 of 2005), a non- Muslim expatriate who is resident in the UAE can opt for the law of their Domicile Home Country to be applied to the distribution of their UAE assets, provided they have a legally recognized will".

An informal survey of lawyers in Dubai who advise clients on freehold property investment reveals that only about 5% of buyers are aware of the laws regarding non-Muslim, foreign nationals and the purchase of freehold property. If you have a legal will and you want your home country laws to apply to the way your inheritance is distributed to heirs, your case will have to be proved before a UAE judge.

As property investors in the UAE start to focus on the long term, they will seek more clarity on how their freehold property ownership could be passed on to their descendents when they die. It is a controversial issue, still open to many interpretations, and at present one that sparks intense debate among lawyers.

The rule in the UAE is that the home country law of the deceased will apply to general, non-real estate matters of inheritance only, and this principle has been confirmed by various judgments issued by the local courts.If you are a non-Muslim expatriate and want your home country laws to apply to the way your inheritance is distributed amongst your heirs, they or their legal representatives would be required to bring a case before a judge in a UAE court

For example in 2000, the Dubai Court of Cassation (Supreme Court) issued a ruling (No. 49 & 50) that in matters of personal status, such as marriage, inheritance and succession, claims made by non-Muslim, foreign nationals would be decided by a UAE judge using the home country law of the non-national as the rule of reference. However, there is a caveat, being that this should only be the case if the country from which the non-national comes from, itself has an inheritance law in place. Also, only if there are no UAE legal conflicts with the home country law. These aspects would be investigated and determined by a judge.
Make a will and register it

A will is a legal document declaring a person's wish about how his or her money and property are to be distributed after his or her death.

As UAE is a Muslim country, all courts adhere to the Sharia in regard to inheritance for Muslim expatriates and Emiratis.

But despite the fact that UAE courts only accept transactions related to marriage, divorce and other issues only from Muslims of any nationality, they also accept wills from expatriates of any religion or nationality as people belonging to Muslim, Christian, Hindu, Buddhist and Sikh faiths reside in UAE.

Expatriate Muslims and non-Muslims who are on a visit visa cannot make a will here, and in case they die here the law of the country will not be implemented in their case.

Property

Expatriates with valid residency visa can make a will and get it registered and legalised at the courts.

The will must be legally approved and attested by the authority from the person's home country, before it can be authorised here as genuine and legal.

If the will gets authorised by the expatriate's home country authorities, then the wishes of the person can be followed regarding disposal of money and property.

But according to UAE Federal Law No. 2 of 1987, Article 17(5) on disposal of property: "The law of the UAE shall apply to wills made by aliens disposing off their property located in the UAE."

The UAE has allowed foreign ownership of land in some areas in Dubai and in some other emirates, but no new law has been issued as to whether Sharia would apply to property owned by non-Muslims.

Expatriates who own property in the UAE should write a will, have it translated into Arabic and notarised at their embassy or consulate, so as to make sure the property is passed on or distributed as one wishes.

If a person dies 'intestate', which means the person dies without making a will, 'inheritance shall be governed by the law of the country of the deceased at the time of death.' This is according to the UAE Civil Code, Federal Law No.2 of 198, Article 17/1. This law was promulgated to stem confusion surrounding inheritance issues for expatriates.

In the event that the deceased left no will and he was a Muslim, Sharia would apply and any debt would be first paid prior to any other disbursement of property.

Procedure: Documents needed

•Expatriates of any nationality or religion can make a will at the courts here.

•You need to have a valid residency visa.

•The person making the will needs to visit the court. The presence of two Muslim men as witnesses with him or her to attest the application of the will is also important. This is even if the applicant is not a Muslim.

•Original copies of the ID of the applicant and witnesses have to be submitted.

•Payment of Dh60 fees for application.

•You need to appear before a judge with your witnesses for an examination of the will application.

•The applicant needs to submit documents which should be authorised by his or her country, regarding the terms of the will.

•You will later return to court to receive the certificate after submitting all the information.

•But if you wish to cancel the will, you will have to return to court with the witnesses and pay a Dh60 fee and submit all needed documents to get the will annulled.

Notably, the UAE is not a common law jurisdiction, so unlike the UK and India, court decisions are not binding on future decisions the courts make. All court decisions are purely discretionary.

The Legal System Of The U.A.E

Practitioner's designation

Advocate. Partnerships are permitted. A local advocate must sponsor any partnership.

Professional education

Candidates must be United Arab Emirates (UAE) nationals and possess a law degree from the College of Law of Al-Ain University or from a recognised Arab university. Arab lawyers with ten years' practice in another Arab country may also be admitted. Non-Arabs are now allowed to practise law in the UAE courts. Foreign law firms are permitted to establish offices but are not admitted as practitioners.

The law has recently been changed requiring practitioners to be exclusively UAE nationals. Arab lawyers who are at present licensed to practise must surrender their licence by the year 1996. However, they may still have the right of audience but in the name of a UAE practitioner.

Other professional designations

Notarial services and authentication are undertaken by the Clerk of Justice and the Registrar of Real Property, both of whom are employees of the Ministry of Justice. However, in the Emirates of Sharjah and Ras Al-Khaima these services are rendered by a Notary Public who is regulated by local laws.

In court

Separate admission must be obtained for each of the seven emirates of the federation. Advocates of 15 years' standing may be admitted to the Supreme Court.

History

The UAE is a federation established in 1971 and comprised of seven emirates namely: Abu Dhabi, Dubai, Sharjah, Ras Al-Khaima, Umm Al-Quwain, Ajman and Fujairah. The promulgation of substantive legislation is confined to the federal institutions, but local authorities may regulate local matters. Prior to establishing the UAE each of the seven emirates passed laws and regulations, including those establishing and regulating the judicial system. For example, Abu Dhabi promulgated a law in 1968 establishing and regulating the courts and Law Number 3 of 1970 dealt with procedures before the civil courts. Dubai promulgated a law establishing its courts in 1970 and Fujairah followed suit in 1969.Ajman, Sharjah, Ras Al-Khaima and Umm Al-Quwain established their courts by laws passed in 1971. Some of the local laws still continue to be in force and effect.

At the head of the federal judicial system is the Federal Supreme Court whose function and operations are stipulated in a particular federal law. The Constitution also provides for the establishment of lower federal courts. Each of the seven emirates, however, retains the right to choose either to participate in the federal legal system or to maintain its own local system. Four emirates (Abu Dhabi, Sharjah, Ajman and Fujairah) fused their local courts into the federal system. The remaining three (Dubai, Ras Al-Khaima and Umm Al-Quwain) maintain their own independent courts. These three emirates initially based their court system on a two-tier structure while on the federal level it is a three-tier system. The Emirate of Dubai, created a further tier by establishing a Court of Cassation in addition to its courts of first instance and appeal.

In the UAE establishment of civil and criminal courts resulted in diminishing the role of the Shari'a Courts. Nevertheless, the competence of the Shari'a Courts in some emirates, particularly Abu Dhabi, was later expanded to include in addition to matters of personal status, civil and commercial disputes as well as serious criminal offences. Therefore, in addition to the civil courts, each of the seven emirates maintains a parallel system of Shari'a Courts which is organised and supervised locally.

Language

The official language of all legal proceedings is Arabic.

Reading

Al-Baharna, HM. 'United Arab Emirates'. International Encyclopaedia of Comparative Law, Vol 1, 1973. Pages U53-57.

Amin, Dr SH. 'Legal Systems of the Gulf'. Lloyd's Maritime & Commercial Law Quarterly, February 1983. Pages 71-85.

Ballantyne, WM. Legal Development in Arabia. Graham & Trotman, London, 1980. 125 pages. ISBN 0 86010 167 3.

Mahmoud, Sabah. UAE Company Law and Practice. Medina Publishing, London, 1990. 230 pages. ISBN 1 873210 00 0.

Professional associations

Lawyers Society, c/o Ministry of Justice-Islamic Affairs (Awqaf), PO Box 753, Abu Dhabi, UAE. Tel: (2) 652 224. Fax: (2) 316 003.

Dubai Lawyers Society, c/o Court's Department, PO Box 4700, Dubai, UAE. Tel: (4) 285 151. Fax: (4) 624 099.

Enforcement of Foreign Judgments

by Sabah Al-Mukhtar, LLB, MA, Attorney-at-Law (practising in London)

The Federal UAE Code of Civil Procedures No 11 of 1992 ('CPC') contains the rules on conflict of laws and private international law provisions. The Civil Code No 5 of 1985 also contains rules on conflict of laws and private international law provisions (Articles 10-28). However, the CPC sets out the process to be followed for enforcement of foreign judgments, orders and instruments.

Article 235 of the CPCestablished the principle that foreign judgments, orders and instruments may be enforced in the UAE under the same preconditions attached to them in the country of origin. It also provides that the enforcement process is commenced by means of an application to be made to the court of first instance in whose jurisdiction the enforcement order is being sought.

The application made in this instance is the same as that of commencing an ordinary suite before the court. That involves all the normal formalities such as a statement of claim, registration, payment of fees, procuring a writ of summons.

Before the court makes the enforcement order it must be satisfied that a number of conditions are met. These, inter alia, include:

a. the UAE court did not itself have the competence or jurisdiction to hear the case and that the foreign court was the proper court having the locus standi under the law of the court;

b. the foreign court had the jurisdiction and competence to hear and decide the case;

c. the parties were properly served and represented in the hearing;

d. the judgment is based on the merits, in conformity with the lex fori and is final (res judicata); and

e. it was not contrary to UAE public policy or to a previous UAE court judgment.

Article 238 of the CPC provides that the provisions of the code in this regard will be subject to any treaty that the UAE is a signatory to. The UAE is a signatory to the regional Arab Judicial Treaty of 1983 (otherwise known as the Riyadh Treaty) to which the 21 Arab countries are signatories. The Treaty affords favourable treatment to decisions of the courts of the Arab member states by treating such judgments as domestic and are automatically recognised in the UAE.

How to get Labour Permit for a firm in UAE

Once the firm has got the license and a computer card the next step would be Labour Permit. The company would require an approval from MOL to get labourers skilled/unskilled to UAE.

B1-Group Labour Permit

Definition

It is a service provided by the Ministry to any firm wishing to bring in more than 50 workers without the need of giving individual details in the first stage. The company should give details of number of workers, nationality and the profession. After approval the company will be granted a period of six months to complete formalities for the approved group labour permit.

Implementation Stages

Stage 1: Approval of group permit

Stage 2: Submission of individual labour permits under an application called (approval for completing the group labour permit procedure)

Stage 1: Approval of group permit

1. Submission of an application mentioning nationality, profession, gender and number of people, along with the prescribed fees and required documents for the approval of group labour permit.

Application Form

Application for group labour permit

Conditions

• The company will present documents justifying the need for workers (e.g. list of projects, building permits, contracts, etc.)

• The company must have a clear track record free of any violations. Specifically, it must fulfill the following:

 No labour cards un-renewed for more than two months or labour permits un-renewed for more than six months

 The salary security reports need to be submitted (as per the requirement of the Ministry).

 Its record is free from persistent group labour disputes arising from unpaid wages, lack of suitable accommodation, or any other employer obligation stipulated by law.

It should not have employed illegal workers of any kind or if the trade license has not been renewed for two months then they should not have any workers employed in that firm.

• The other firms of the owner must not have on records any labour cards not renewed for 3 months or labour permits not renewed for 6 months or any violations registered against it.

• The authorized person should have a digital signature card

Documents Required

• A valid trade license.

• List of projects as per the contract should include the name of parties, subject, budget of the project, starting date, ending date and service / quality level.

• Copies of contracts, duly translated if in a foreign language, and attested according to Ministry’s regulations, if they are sub-contracts.

• Copies of building permits from the municipal authorities (if the firm is contracting company)

• Copies of ownership or lease agreement for office or workers’ accommodation (for existing workers)

• Copies of ownership or labour accommodation lease agreement (for workers to be imported as per group permit). It is required to indicate the number of rooms and whether they are suitable to accommodate the workers, together with photographic illustrations. In case no accommodation is available, the Ministry may, on approval by the Undersecretary or Assistant Undersecretary, accept an undertaking from employer to provide the same. After the final approval, the permit will be granted subject to the satisfactory report from the Inspection Department.

• List of company’s machinery and vehicles which can also includes transportation rental contracts mentioning the number of buses which need to be approved by the traffic Dept.

• Settlement of expired labour cards, labour permit and license of other firms owned by the applicant attested from Labour Establishment.

• A sketch drawing of firm’s site and workers’ accommodation, along with photos of the company and facilities.

• Company’s pay-roll for the last two months (excluding the month the application is filed and for the month preceding it).

Steps to Follow

1. Type the group permit application for submission, together with the fees and necessary documents (no application will be typed for group labour permit if the firm has any violations as per the records in the Ministry).

2. The application would be approved and attested by the Ministry with an undertaking letter stating that the owner /authorized person would submit all the required documents and abide to all the conditions necessary for the completion of group labour permit procedure.

3. If all the documents and conditions are fulfilled, the application is typed with following documents attached:

 An undertaking by the owner that he takes responsibility of fulfilling all conditions and documents required for group labour permit.

 A statement mentioning work details and percentage of worker.

4. Submit the application with required documents at the counter in the Inspection Department at the Ministry HQ in Abu Dhabi or Dubai or the concerned Labour office.

5. The application is vetted, scrutinized and checked for complete documents . The following documents need to be submitted:

 Statement mentioning work details and percentage of work.

 Copy of contracts (translated in Arabic) and attested as per the requirements of the Ministry in case of sub contract. Copy of building permit needs to be attached if it is a contracting company.

 Copies of ownership or labour accommodation lease agreement (for workers to be imported as per group permit). It is required to indicate the number of rooms whether there are suitable to accommodate the workers together along with photographic illustrations. In case no accommodation is available the Ministry may, on approval of Undersecretary or Assistant Undersecretary, accept an undertaking from the employer to provide the same on approval of group labour permit.

6. The applicant will be given a receipt for the submitted documents and it will mention that he will have to provide any other document if necessary (on request by the staff at Ministry counter).

7. Once all the documents are completed, the firm is notified for the date of inspection to assess the volume of work and ensure the firm’s compliance with inspection conditions. The Inspection Department will then submit its report.

8. The application will then be referred to the Permits Committee for processing and would be either approved or disapproved based on documents and the inspection report. The application then is referred to the Assistant Undersecretary for the final approval.

9. Following the final approval / disapproval the application is referred to the Permit Dept’s. Counter for issuing a letter of approval or apology incase of rejection. If approved the applicant is informed to pay the fees in one installment and to submit individual labour permit.

10. If the approval is subject to any conditions specified by the Inspection Department, the applicant needs to fulfill this condition (before the payment of fees is done).

Where to Apply?

All applications will be submitted to the Inspection Dept. at the Ministry HQ in Abu Dhabi or Dubai or the concerned Labour Office.

Fees

Documents Fees (in Dirham)

Group Labour Permit Application Category A Category B Category C

200/worker 200/worker 200/worker

The UAE's new companies law, expected to come out in 2010

The UAE's new companies law, which is expected to come out in 2010, will relax foreign ownership restrictions but will stop short of allowing 100 percent ownership, an Abu Dhabi government official said on Tuesday.

Mohammed Omar Abdulla, undersecretary of Abu Dhabi's department of economic development, made the remarks at a panel discussion.

"The new companies law in the UAE will make a relaxation in foreign ownership," he said. "It will not be up to 100 percent, it will be more than 49 percent."

Abdullah added that Abu Dhabi plans to set up a dedicated investment agency to attract foreign investment.

"In line with our five-year strategic plan, the department is working towards setting up a dedicated investment agency to serve the needs of international investors," said Abdullah .

The new agency will begin operations by the end of 2010 and will identify areas of opportunities to attract foreign investments, he added.

"International investors have a crucial role to play bringing in expertise, technology and best global practices," he told the conference.

Abdullah also said the Ministry of Economy was preparing the final draft of a new UAE companies law which will come out this year. The law will relax foreign ownership rules but stops short of allowing 100 percent ownership, he said. (Reuters)

The Dubai World Insolvency Code

On 14 December 2009, UAE's stock market shot up in excess of 10% following the announcement of the due repayment of $ 4.1 billion to the Sukuk holders of Nakheel Development Limited following a $ 10 billion support payment from Abu Dhabi to the Government of Dubai.

Only a few hours' later the Dubai Government announced the implementation of an insolvency code, Decree No.57 for 2009 (the "Code"), created specifically for Nakheel's ultimate parent Dubai World and its group companies. This Code is largely based on Dubai International Financial Centre's insolvency laws with some amendments specific to Dubai World.

There was certainly some uncertainty surrounding the ability of the existing UAE insolvency laws to handle a case like that of Dubai World. The issues relating to Dubai World were enormous in scope and unique. The debt to be dealt with, even by the standards of the past 14 months, was significant. There was the issue of whether or not existing UAE law would in fact apply to Dubai World - the parent in the group - at all, it having been formed not under the Federal commercial laws but by Ruler's Decree. Also here was a situation where there where multiple classes of stakeholders – sukuk holders, shareholders, institutional and other lenders, foreign and domestic, and a host of trade creditors – which might not receive adequate protection or might not receive the same within a reasonable time frame given the limitations of the existing law.

Finally there was the perceived need expressed in the international community (and press) for steps to be taken quickly – given the sheer size and global importance of Dubai World and the potential impact of its outright failure. But the need for speed had to be tempered with the need for the international community to see that any process put in place was based on international standards for transparency and protection of creditors' interests.

Application Of The Code

The Code is stated to apply only to Dubai World and its group companies. It does not apply to any other companies in Dubai or the UAE nor to individuals.

Under Article 3 the Tribunal constituted under the Code is charged with hearing any demand or claim submitted against Dubai World or its subsidiaries, inclusive of any demand to dissolve or liquidate any group member as well as to adjudicate disputes against any person related to settlement of financial obligations of the group, its Chairman or Board of Directors as well as the employees of the group.

The Code also grants the Tribunal the power to issue interim and interlocutory orders and relief, inclusive of injunctions. Significantly, by virtue of Article 9 the Dubai Courts are prohibited outright from hearing or determining any demand, claim or other matter which is within the jurisdiction of the Tribunal under the Code.

The Code then effectively replaces the UAE Commercial Law, Federal Law No. 18 of 1993 and its attendant bankruptcy provisions; the UAE Commercial Company Law, Federal Law No. 8 of 1984 (as amended) and its otherwise applicable liquidation provisions; and presumably given the application of the Tribunal's jurisdiction to employees, the UAE Labour Law (Federal Law No 8 of 1980 (as amended) with the authority of the Tribunal.

All of these laws are however Federal Laws. While the law might clearly apply to a decree company like Dubai World, would not the subsidiaries of Dubai World formed under applicable Federal law continue to be governed by those laws? Does the Emirate of Dubai constitutionally have the power to exempt companies within the Emirate from the application of Federal Law? While the Constitution does grant significant autonomy to each Emirate, individual Emirates may not legislate on those matters subject to federal legislative authority. Article 121 of the Constitution specifically reserves to the Federal legislature major matters relating to commercial transactions and company law.

Structure And Powers Of The Tribunal

The Tribunal is to consist of a panel comprising three to five prominent internationally recognized judges. The announced appointments to date have been impressive indeed including Sir Anthony Evans, Chief Justice of the DIFC Courts, Michael Hwang, SC, Deputy Chief Justice of the DIFC Courts and Sir John Murray Chadwick, also of the DIFC Courts.

As noted above, the Tribunal has been given very wide powers to adjudicate on matters brought before it. For example, upon notification from Dubai World, to the Tribunal, to make a proposal for voluntary arrangement, an automatic moratorium (irrespective of the consent of the creditors) will be applicable to its assets until the conclusion of the proceedings or such time as ordered by the Tribunal. Furthermore, the Tribunal is authorised to extend this moratorium to any Dubai World subsidiary upon application and based on certain stipulated thresholds.

Moreover if the arrangement negotiations with the creditors are not successful then there is a provision for the winding up of Dubai World unless the Tribunal is of the opinion that declining the winding up is in the interests of the Dubai World and its creditors.

Also as noted above the powers of the Tribunal are exclusive within the ambit of the authority granted it under the Code. However while the Dubai Courts are prohibited from hearing or adjudicating upon matters within the Tribunal's purview, the Federal Courts are of course not. Similarly the Tribunal can not affect the rulings of foreign courts on matters where foreign law has been elected by the parties.

Questions Surrounding The Code

There is no question that the Code represents a first rate legal framework for dealing with the issues it is meant to face, drawn to international standards. The constitution of the Tribunal also means that it will be policed by distinguished jurists of international stature.

There are various uncertainties surrounding the Code in relation to the jurisdiction of the Tribunal and conflict of Code with the UAE Constitution and UAE Commercial Code. It is of course yet untested. As yet there is no answer to the question whether powers of the courts which are granted by the Federal statutes can be restricted by an individual Emirate's legislation.

There are also questions as to whether and to what extent the new Code can prevail over the Commercial Code (which is Federal in nature) in respect of entities governed by commercial companies law, namely the subsidiaries of Dubai World.

There are no certain answers to these questions and it remains to be seen how the Government manages these issues and rises to these challenges in future.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.http://www.mondaq.com/article.asp?articleid=92092&email_access=on

Article by Douglas G. Smith and Shoeb Saher

Dubai Regulatory Environment -Administered by the Federal Ministry of Labour and Social Affairs

Administered by the Federal Ministry of Labour and Social Affairs, Labour Law in the UAE is loosely based on the International Labour Organisation's model. UAE Law No. 8 of 1980, as amended by Law No. 12 of 1986 (the "Labour Law") governs most aspects of employer/employee relations, such as hours of work, leave, termination rights, medical benefits and repatriation. The Labour Law is protective of employees in general and overrides conflicting contractual provisions agreed under another jurisdiction, unless they are beneficial to the employee.

The Ministry issues a model form of labour contract in Arabic which is widely used, but other forms of contract are enforceable, provided they comply with the Labour Law. End of contract gratuities are set at 21 days pay for every year of the first five years of service and 30 days for every year thereafter. Total gratuity should not exceed two years' wages. Employees are entitled to pro-rated amounts for service periods less than a full year, provided they have completed one year in continuous service.

Trade unions do not exist. In the case of a dispute between employer and employee, or in interpretation of the Labour Law, the Ministry of Labour and Social Affairs will initially act as an adjudicator, in an effort to resolve matters. If a party wishes to appeal any such decision it can take its case to court. Strikes and lock outs are forbidden.

The normal maximum working hours are eight per day or 48 per week. However, these hours may be increased to nine daily for people working in the retail trade, hotels, restaurants and other such establishments. Similarly, daily working hours may be reduced for difficult or dangerous jobs. Many businesses work on a two shift system (for example, 8am - 1pm and 4pm - 7pm). As in all Muslim countries, Friday is the weekly day of rest. In practice, commercial and professional firms work 40-45 hours a week and government ministries about 35. The weekend for office workers has traditionally been Thursday afternoon and Friday, but a number of organisations have changed over to a five day week with Friday and Saturday as the weekend. During the Muslim holy month of Ramadan, normal working hours are reduced by two hours per day.

There are 10 days of public holidays (paid) in any year. The employee's annual leave is two days for every month if his service is more than six months and less than a year. In every completed year of service after the first, an employee is entitled to 30 days annual paid leave. This is in addition to public holidays, maternity leave for women and sick leave.

Overtime is used extensively and additional pay is required for manual and lower ranking staff.