Licence made mandatory soon for teaching in UAE classrooms

Soon teachers will not be permitted to teach in UAE classrooms unless they have a licence, the Undersecretary of the Ministry of Education said Tuesday during Youm Al Wafa’a (Loyalty Day).

“To be permitted to teach in the UAE, teachers will have to have a federal licence that ensures a unified system and teaching standards in schools,” said Marwan Al Sawaleh, Undersecretary at the ministry.

Al Sawaleh said the cabinet ordered the ministry to submit all the suggested procedures and legislations by the end of this year. Once approved and implemented the licence will be required by all teachers in the UAE.

“After the approval the federal licence system will be introduced in phases, to include all teachers under a unified system.”Al Sawaleh made the statement on the sidelines of Youm Al Wafa’a, an annual award ceremony organised by the ministry to honour educational and media supporters as well as retired ministry employees.

UAE may soon approve new companies law: Minister

The UAE is soon expected to approve a long-awaited new law covering the operations of companies in the country, a step towards attracting fresh foreign investment, the economy minister said on Monday.

"The companies law is with the government to be ratified by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan - we are expecting that soon," Sultan bin Saeed Al Mansouri, Minister of Economy, told reporters.

The new law, which has been years in the making, contains dozens of articles seeking to make limited liability and joint stock companies simpler to manage and more attractive to investors, while strengthening corporate governance in areas such as companies making loans to their directors.

The law would provide for companies’ documentation to be made publicly available, a step towards a more transparent corporate environment in the UAE.

One article, contained in a version of the law given preliminary approval last year, would reduce the minimum free float in initial public offers of shares to 30 per cent from 55 per cent, the ratio which currently applies on the UAE's two main stock exchanges.

The minimum ratio deters some corporate founders who want to maintain majority ownership, and has been criticised as one factor encouraging UAE companies to list their shares in overseas markets such as London rather than domestically. Officials have not confirmed that the article lowering the ratio will be included in the final version.

The law will certainly be less radical than some investors had hoped; last year the consultative Federal National Council rejected an article that would have eased tight controls on foreign ownership of companies, citing security fears and threats to local businesses.

The article would have given the UAE cabinet the power to let foreign parties own stakes of up to 100 per cent in companies outside free zones. Currently, foreigners can generally hold stakes of up to 49 per cent in businesses located outside free zones.

Last year, the economy minister said the article liberalising foreign ownership would be included in a draft foreign investment law. That bill has now been finalised by a ministerial legal committee and is awaiting approval of the FNC, Mansouri said on Monday.

Meanwhile, a law on small and medium-sized enterprises, which the cabinet hopes will boost the growth of SMEs and encourage UAE citizens to establish companies, is on its way, Mansouri said: "The SMEs law has been ratified by the President. That should be out soon."

The law is expected to include provisions encouraging government agencies to provide support to SMEs.

The UAE expects to attract € 8.6 billion ($11.9 billion; Dh43.67bn) in foreign direct investment into its non-oil sector in 2014, 20 per cent more than last year, Mansouri said.

The second biggest Arab economy is investing billions of dollars in industry, tourism, real estate and infrastructure to wean its economy off its reliance on oil exports.

Emirates ID Card to include traffic details-Federal Traffic Council

The Federal Traffic Council has recommended unifying drivers' traffic file information and linking it to the Emirates ID card so that it takes the same ID number. This is in a bid to make it easy for customers to complete their transactions in any one of the emirates in the country.

Major General Mohammed Saif Al Zafeen, Head of the Federal Traffic Council and Deputy Chief Commander for Operational Affairs at Dubai Police,  said that the council has finalised drafts of the recommendations related to traffic law and is expecting suggestions on the possibility of adding new texts that are commensurate with the developments and requirements of traffic security.

Al Zafeen added that the council has issued a set of recommendations to be submitted to the higher committee for policies and strategies headed by Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior, to take the final relative decision, noting that Sheikh Saif has given clear directives for unifying traffic related procedures in all the emirates, aiming to eliminate any deficiencies or differences in regulations or application.

He pointed out that members of the council and directors of traffic departments in the country have unanimously approved these recommendations. Mechanisms to implement the recommendations will be coordinated with the relevant authorities in each emirate, he added.

Law No 26 of 2007 issued to regulate eviction of tenants,Landlords can evict tenants to reconstruct property or recover it for personal use

Articles 25 (2) and 26 of Dubai Law No 26 of 2007 which regulate the relationship between landlords and tenants in the emirate of Dubai state that landlords may demand eviction of tenants prior to expiry of tenancy period in the following cases:

Article 25 (2): Landlord may demand eviction of tenant upon expiry of tenancy contract in the following cases: a.If development requirements in the emirate requires demolition and reconstruction of the property in accordance with government authorities’ instructions

b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant occupies the property, provided that a technical report attested by Dubai Municipality is submitted to this effect.

c.If landlord wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained.

d. If landlord wishes to recover the property for use by him personally or by his children.

Article (26): If, upon expiry of the tenancy period, the landlord demands recovery of the property for his own use, or use by his children, and the committee approves the same, then the landlord shall not rent the property to others before one year from date of recovery of the property, otherwise the tenant shall have the right to request the committee to order proper compensation to him.

Shaikh Mohammad issues decree on rent hike caps while renewing tenancy contracts

Future rent increases in Dubai will be decided by a weighted average of what properties in that particular area command rather than an arbitrary demand by a landlord. It applies equally to residential and commercial realty in the emirate.

This will be the natural result of a new decree issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The Decree, No. 43 of 2013, sets a specific band on how the optimum rental increases that a landlord can demand while renewing leases.

The new rental slab will not allow landlords to raise rents on renewals if the current lease is only 10 per cent lower than the average rent of a similar property.

It will be applicable to private and public sector owned properties in Dubai, as well as — pertinently enough — within the free zones. The Decree thus brings the future setting of lease terms and renewals more in sync with the Dubai Rent Index brought out by the Real Estate Regulatory Agency.

Landlords can raise rents on renewals by:

    5 per cent if the earlier rental is 11 to 20 per cent lower than the average rent for a similar property;
    10 per cent if the rental is 21 to 30 per cent lower than the current going rates for properties of a similar scale;
    15 per cent if the rent is as low as 31 to 40 per cent than comparable ones; and
    20 per cent if a property’s rental is more than 40 per cent less than the average.

In a statement, the Dubai Government emphasized the need to abide by the new regulations. The Decree takes effect from the date of issue and will be published in the gazette.

“There were several controls already in place, such as the rent cap, to ensure landlords could not arbitrarily hike rents on renewals,” said Niraj Masand, partner at the real estate services firm Banke M. E. “The creation of the rental slab and the strict parameters on when and by how much hikes can be effected will have a significant impact on market dynamics.”

The latest announcement is seen as part of a series of steps taken by the Dubai Government to ensure that the momentum build-up within the real estate sector is managed well and does not lead to an overheated environment.

It was in late September that Dubai reconstituted a court — under the aegis of the Land Department — exclusively given to handling rental disputes, for both residential and commercial properties.

There were concerns in the local property sector that the city winning Expo 2020 would place additional stress on rentals. New businesses and new professionals coming in would lead to saturation demand on available property stock, which would then lead to landlords to demand more.

Now, with the rental slab and its link-up with the rental index, landlords’ leeway in setting the terms of renewals is circumscribed to an extent.

Will this mean a doing away with the rental cap? While there has been no statement on the same, market sourced believe with the new leasing renewal structure in place, the rationale for a cap is no longer there.