59A7D41EB44EABC4F2C2B68D88211BF4 UAE Visa Rules & Procedures - UAE Law Updates for 2025

Monday, February 19, 2024

The U.A.E implemented key reforms in banking laws which are likely to affect guarantees

The UAE's recent law reforms for its financial sector aim to boost its appeal while safeguarding both lenders and borrowers. However, some key changes leave room for uncertainty and potential challenges. For nearly three decades, the UAE's commercial landscape relied on the Commercial Transactions Law (CTL) of 1993. However, on January 2nd, 2023, a new era began with the introduction of Federal Decree Law No. 50 of 2022, also known as the Updated CTL. This modernized law aims to invigorate the UAE's business environment while retaining the core principles of its predecessor. While many familiar provisions remain, some key additions and clarifications directly impact financing transactions.

The UAE has implemented two key banking law reforms in recent months that have implications for guarantees 

Seeking Security: 

To address rising defaults among individuals and sole proprietors, Article 121 of the amended Banking Law mandates banks and financial institutions to secure "sufficient" guarantees from them for loans. The New Commercial Law's Article 409(2) similarly requires "sufficient" securities against loans.

Ambiguity Bites:

While these measures aim to protect lenders, the lack of a clear definition for "sufficient" creates ambiguity.

This has led to inconsistent interpretations in court cases, with some guarantees deemed insufficient and enforcement actions blocked.

1. UAE Banking Law (as amended): 

Came into effect: January 2, 2023

Key change: Article 121 now requires "sufficient guarantees" when lending to natural persons and sole proprietorships.

Implications for guarantees:

Banks must be more vigilant in obtaining guarantees for loans to individuals and sole proprietors.

The law doesn't define "sufficient," leading to uncertainty and potential disputes.

Some court cases have challenged the enforcement of guarantees due to unclear "sufficiency."

2. New Commercial Law: 

Came into effect: January 2, 2023

Key change: Article 409(2) states banks "shall have sufficient securities or guarantees" against loans.

Implications for guarantees:

Strengthens the obligation for banks to obtain guarantees compared to the previous law.

Guarantees become mandatory, not just optional, for most loan agreements.

Similar ambiguity exists regarding the definition of "sufficient."

Overall implications: 

Increased use of guarantees: Expect banks to require guarantees more frequently, especially for individuals and sole proprietorships.

Uncertainty for both lenders and guarantors: The lack of a clear definition of "sufficient" creates uncertainty regarding the enforceability of guarantees.

Potential for litigation: Disputes over the adequacy of guarantees might increase, leading to more litigation.

Additional notes:

Guarantor Liability:

  • Article 69(2) clarifies that both guarantors and the debtor are jointly liable for the debt.
  • This emphasizes the co-extensive liability principle, similar to civil transactions.

Payment Guarantees:

  • Banks can withhold payments under attachment orders for guaranteed funds.
  • This strengthens the bank's right to protect guaranteed funds from court interventions.

Adequacy of Security:

  • Banks must obtain "sufficient" guarantees for all facilities for individuals and sole proprietorships (Banking Law).
  • All borrowers of commercial loans require "sufficient" securities (Updated CTL).
  • The interpretation and enforcement of "sufficient" for corporate loans remain unclear.

  These reforms are part of a broader effort to strengthen the UAE's financial sector and protect borrowers.

While these reforms aren't intended to restrict investment-grade lending, caution is advised for institutions operating in the UAE.

  • To mitigate potential issues, consider the following practical steps:
  • Seek legal counsel for specific interpretations and guidance.
  • Carefully assess individual circumstances and risk profiles before granting loans.
  • Consider alternative security options beyond traditional guarantees.
  • Regularly review existing loan portfolios and adjust strategies as needed.

 

Sunday, February 18, 2024

U.A.E Visa Applications Made Easy: Say Goodbye to Paperwork with E-Health Insurance

 Good news for residents in the UAE! Starting February 19th, the manual submission of health insurance documents for visa applications and renewals is a thing of the past.

The Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) has launched a new, unified electronic platform for seamless health insurance data transfer. This means:

No more paper forms: Upload your health insurance information directly through the platform.

Faster processing: Eliminate delays and enjoy a smoother visa application experience.

Secure connections: Major General Suhail Saeed Al Khaili, Director General of ICP, assures secure data transfer.

This initiative builds on the success of the smart system for electronic government services. In 2023 alone, over 5 million residence permit transactions were processed through this system, demonstrating its efficiency. 

Here's a breakdown of the improved process: 

New residence permits: Over 1.6 million were issued in 2023 using the electronic system.

Residence permit renewals: More than 3.5 million renewals were processed electronically in the same year.

The UAE continues to embrace digitalization, making resident services more convenient and efficient. So, ditch the paperwork and prepare for a faster, easier visa experience! 

Moreover, the digitalization of the visa application process and the inclusion of e-health insurance reflect the UAE's vision of becoming a leading digital hub in the region. By embracing digital innovation, the country is not only enhancing its competitiveness but also setting new standards for customer service and convenience. 

In conclusion, the introduction of a streamlined visa application process integrated with e-health insurance is a significant milestone in the UAE's journey towards digital transformation. This initiative benefits travelers and investors and showcases the government's commitment to leveraging technology for the greater good.

Friday, February 16, 2024

Important Changes in the U.A.E Labour Law-2024,Updates You Need to Know!

 Here are some key updates to the U.A.E labor law in 2024, along with existing laws:

New:
Unemployment Insurance Scheme: This scheme, launched in January 2024, provides financial support to eligible employees who lose their jobs.

MOHRE dispute resolution: For disputes under AED 50,000, MOHRE can now act as a judge and issue final, enforceable decisions.

Expanded Emiratisation: Companies with 20-49 employees in specific sectors must hire at least one Emirati national by December 2024.

Increased maternity leave: Maternity leave is now 60 days, with 45 days at full pay and 15 days at half pay.

Existing:

Working hours: The maximum working hours are 8 hours per day/48 hours per week. Overtime is limited to 2 hours per day and 12 hours per week.

Rest days: Friday is no longer mandatory, but employees must receive at least one rest day per week.

Notice periods: Employees must give 30 days' notice of termination, and employers can seek repayment of recruitment costs from the new employer.

Leave entitlements: These include annual leave, sick leave, compassionate leave, and parental leave.

Contract types: Fixed-term and unlimited contracts are allowed.

Non-competition agreements: These are allowed for senior positions and must be reasonable in duration and scope.

U.A.E Unemployment Insurance Scheme with federal law sections:

The U.A.E. Unemployment Insurance Scheme is governed by Federal Decree-Law No. 13 of 2022 Concerning Unemployment Insurance Scheme. Here are some key sections of the law:

 Scope & Application: 

·       Article 2: Applies to all employees (except certain categories like investors, and domestic workers) in both private and federal sectors.

·       Article 3: Exemptions can be made by the UAE Cabinet.

Contributions & Benefits:

·       Article 5: Contribution rates are 0.5% and 1% of the basic salary for employees earning less and more than AED 16,000 respectively.

·       Article 6: Employers contribute the same amount as employees.

·       Article 8: Maximum unemployment benefit is 60% of basic salary, capped at AED 10,000 or AED 20,000 depending on the contribution category.

·       Article 9: Benefit duration is 3 months per claim, with a maximum of 12 months during employment in the U.A.E.

Eligibility:

·       Article 10: Must be enrolled for at least 12 months prior to unemployment.

·       Article 11: Must not be terminated for disciplinary reasons.

·       Article 12: Must be actively seeking employment and register with relevant authorities.

Claims & Disputes:

Article 15: Claims are submitted to the insurance service provider.

Article 16: Disputes are resolved by the Ministry of Human Resources and Emiratisation (MOHRE).

Article 17: Appeals can be made to the competent judicial authorities.

Additional Resources:

MOHRE Dispute Resolution in the U.A.E.: Details

The Ministry of Human Resources and Emiratisation (MOHRE) offers multiple avenues for resolving labor disputes in the U.A.E., depending on the nature and value of the claim. Here's a breakdown: 

1.      Amicable Settlement: 

1.      This is the preferred approach, where MOHRE acts as a mediator to facilitate an agreement between the employer and employee. It's free and often the quickest method. 

2.      Individual Labour Complaints: 

3.      For claims under AED 50,000, MOHRE can act as a judge and issue final, enforceable decisions. This process is faster and cheaper than going to court. 

4.      Labour Courts:   For claims exceeding AED 50,000 or if an amicable settlement isn't reached, the dispute proceeds to the labor courts. This is a formal judicial process with legal fees and longer timelines. 

     4. Collective Labour Disputes:    When 100 or more employees have a common grievance against their employer, they can file a collective complaint with MOHRE. The ministry attempts mediation, and if unsuccessful, refers the case to a specialized conciliation committee. 

Key Points:

Filing: Complaints can be submitted online, via the MOHRE app, or in person at service centers.

Representation: Legal representation is not mandatory but recommended for complex cases.

Time Limits: There are deadlines for filing complaints, typically within one year of the violation.

Fees: Some procedures involve minor administrative fees. 

Expanded Emiratisation in the U.A.E.: Details

The U.A.E. government has expanded its "Emiratisation" program to increase the number of Emirati citizens employed in the private sector.

Here are the key details:

Who is affected? 

Private companies with 20-49 employees: These companies were previously exempt, but now they must hire at least one Emirati citizen by December 2024 and two by December 2025.

Companies already subject to Emiratisation: Companies with 50 or more employees still need to meet their existing targets, which typically involve a 2% annual increase in Emirati employees.

Which sectors are targeted? 

The expanded Emiratisation applies to specific economic activities across 14 sectors, including: 

  1. Healthcare
  2. Education
  3. Information technology
  4. Retail
  5. Tourism and hospitality
  6. Banking and Finance
  7. Transportation and logistics
  8. Engineering
  9. Construction
  10. Media and entertainment

What are the consequences of non-compliance? 

Companies that do not meet their Emiratisation targets will face financial contributions: 

AED 96,000 for failing to hire one Emirati citizen in 2024.

AED 108,000 for failing to hire two Emirati citizens in 2025.

What are the incentives for compliance? 

The government offers incentives to companies that exceed their Emiratisation targets, such as: 

  • Reduced business fees
  • Priority government contracting opportunities
  • Public recognition

 Increased Maternity Leave in the U.A.E.:

The U.A.E. has implemented several changes over the past few years to increase maternity leave for female employees, offering one of the more generous packages in the region. Here's a breakdown: 

Current Maternity Leave:

Total duration: 60 days

Paid leave:

45 days at full pay (100% salary)

15 days at half pay (50% salary)

Additional Options:

Early Leave Up to 30 days before the expected delivery date, with a doctor's certificate.

Leave for Complications: Up to 45 days of unpaid leave for pregnancy-related illnesses, with a doctor's certificate.

Leave for Sick Baby: Up to 60 days of fully paid leave, and an additional 60 days of unpaid leave, if the baby is born sick or with a disability.

Nursing Breaks: Two hours of reduced working hours daily for one year after returning to work to breastfeed.

Emirate-Specific Variations:

Dubai: 90 days of leave, with 60 days at full pay and 30 days unpaid.

Sharjah: 120 days of leave, with 90 days paid and 30 days unpaid.

Key Points: 

Employees must have been employed for at least one year to be eligible for full paid leave.

Leave days can be consecutive or intermittent.

Employers are not allowed to terminate pregnant women or those on maternity leave.

Wednesday, February 14, 2024

Tourist, Residence, Visit or Golden- Which U.A.E Visa is Right for You? in 2024

 The United Arab Emirates (U.A.E) is a popular destination for individuals seeking employment, business opportunities, or simply a change of scenery. However, before planning your trip to the U.A.E, it is essential to understand the different types of visas available and the requirements associated with each. This essay will overview the various visa options in the U.A.E in 2024.
1. Visit Visa:

The Visit Visa is suitable for individuals who wish to enter the U.A.E for tourism, to visit family or friends, or to attend conferences or events. This visa is typically valid for 30 to 90 days, depending on the purpose of the visit. It is important to note that the Visit Visa does not permit the holder to work in the U.A.E.

There are several types of visit visas available in the UAE, each with its own specific requirements and application process. Here's a breakdown of the most common ones: 

Tourist Visas:

Short-term visa: This visa is valid for a single entry and allows you to stay in the UAE for up to 30 days. It can be obtained either as a single-entry or multiple-entry visa.

Long-term visa: This visa is valid for multiple entries and allows you to stay in the UAE for up to 90 days on each visit. It can be extended for an additional 90 days. There are two types of long-term visas: single-entry and multiple-entry.


5-year multiple-entry visa: This visa allows you to enter the UAE multiple times over five years and stay for up to 90 days on each visit. It can be extended for an additional 90 days. To be eligible for this visa, you must have a bank balance of at least USD 4,000 and a valid health insurance policy.

Visa on arrival: Nationals of certain countries can obtain a visa on arrival for stays of up to 30 days. The list of eligible countries is subject to change, so it is best to check with the UAE embassy or consulate in your home country for the latest information.

Transit visa: This visa allows you to stay in the UAE for up to 96 hours while in transit to another country.

Business visa: This visa is for people who are coming to the UAE for business purposes, such as attending meetings or conferences.

How to apply for a UAE visit visa:

The process for applying for a UAE visit visa will vary depending on the type of visa you are applying for and your nationality. However, the general steps are as follows: 

Check if you need a visa: You can check if you need a visa to visit the UAE on the website of the Federal Authority for Identity and Citizenship (ICA).

Choose the right visa: Once you have confirmed that you need a visa, you will need to choose the right type of visa for your needs.

Apply online: You can apply for most UAE visit visas online through the ICA website. You will need to create an account and pay the visa fee.

Submit your documents: Once you have submitted your application online, you will need to submit your supporting documents to the nearest UAE embassy or consulate. The required documents will vary depending on the type of visa you are applying for.

Wait for a decision: The ICA will process your application and decide within a few days. You will be notified of the decision by email.

Here are some additional things to keep in mind when applying for a UAE visit visa:

Your passport must be valid for at least six months after you arrive in the UAE.

You will need to have travel insurance that covers your entire stay in the UAE.

You may be required to show proof of funds to cover your stay in the UAE.

The visa fee will vary depending on the type of visa you are applying for and your nationality.

 2. Employment Visa: 

The Employment Visa is required for individuals who have secured a job offer in the U.A.E. To obtain this visa, the applicant must have a valid employment contract and sponsorship from their employer. The Employment Visa is typically valid for two years and can be renewed upon expiration. It is essential to have the necessary qualifications and meet the U.A.E's labor market requirements to be eligible for this visa.

Employment Visas in the U.A.E.

Obtaining an employment visa in the U.A.E. is a crucial step for foreigners seeking to work and reside in the country. Here's a comprehensive overview of the different types, eligibility, and application process: 

Types of Employment Visas: 

Standard Employment Visa: The most common type, issued for 2-3 years and sponsored by your employer. Requires a valid employment contract and company approval.

Green Visa: A long-term residency visa valid for 5 years, targeting highly skilled professionals and investors. Offers greater flexibility and benefits.

Freelancer Visa: Enables independent contractors and freelancers to work in the U.A.E. Requires meeting specific income and skill criteria.

Golden Visa: A 10-year residency visa for exceptional talents and investors, offering multiple benefits like family sponsorship and business ownership. 

Domestic Worker Visa: Issued for household help employed by UAE residents.

Eligibility:

Educational qualifications and work experience relevant to the offered position.

Meeting specific health and fitness requirements.

Having a valid passport with sufficient validity.

Sponsored by a UAE-registered company (except for freelancers and Golden Visa applicants).

Application Process: 

Employer obtains a work permit: The sponsoring company applies for a work permit from the Ministry of Human Resources and Emiratisation (MOHRE).

Medical fitness test: You undergo a medical test at a MOHRE-approved facility.

Emirates ID application: Once approved, you apply for an Emirates ID, the national identity card.

Visa stamping: Submit your passport for visa stamping at the relevant authorities. 

3. Investor Visa: 

The Investor Visa is designed for individuals who wish to establish a business or invest in the U.A.E. To qualify for this visa, the applicant must meet specific investment criteria set by the U.A.E government. The Investor Visa, also known as the Golden Visa, offers a unique pathway to long-term residency in the U.A.E. for affluent individuals seeking investment opportunities and a vibrant lifestyle. 

Here's a breakdown of its key details: 

Benefits: 

10-year residency visa: Enjoy long-term stability and freedom to live, work, and study in the U.A.E.

Family sponsorship: Extend the visa benefits to your spouse and children.

Multiple entry benefits: Travel in and out of the U.A.E. freely without renewing the visa.

No restrictions on employment: Work for yourself, be employed, or start your own business.

Tax benefits: Enjoy favorable tax advantages on certain income categories.

Eligibility:

Invest at least AED 2 million (approx. USD 544,484) in one of the following:

Public sector investment: Deposit in an investment fund approved by the Securities and Commodities Authority (SCA) with a minimum capital of AED 2 million.

Property investment: Purchase a ready property of at least AED 2 million, held for a minimum of 3 years.

Company establishment: Set up a new company or invest in an existing one with a minimum capital of AED 2 million and maintain active business operations.

Meet health and security clearance requirements.

Application Process: 

  • Choose your investment option and ensure it meets the eligibility criteria.
  • Obtain approval from the relevant authorities based on your chosen investment route.
  • Submit your application through the ICA website or authorized typing centers.
  • Pay the visa processing fees.
  • Attend a medical examination and submit the report.
  • Provide necessary documents, including your passport, investment proof, and bank statements.
  • Receive your Emirates ID and Golden Visa after approval.

 4. Student Visa: 

The Student Visa is required for individuals who wish to pursue their education in the U.A.E. To obtain this visa, the applicant must have an acceptance letter from a recognized educational institution in the U.A.E. The Student Visa allows the holder to reside in the U.A.E for the duration of their studies.

Student Visa in the UAE: Pursuing Your Education Goals

Obtaining a student visa is crucial for international students seeking to pursue their academic journey in the vibrant and diverse educational landscape of the UAE. Here's a breakdown of the key aspects: 

Types of Student Visas: 

Standard Student Visa: Valid for one year, renewable annually based on your student status. Sponsored by your university or your parent residing in the UAE.

Long-Term Student Visa (5 years): Available to outstanding students with a high GPA (3.75+) in secondary or university education. Offers extended stability for your studies.

Eligibility: 

  • Accepted into an accredited educational institution in the UAE.
  • Meet health and security clearance requirements.
  • Have a valid passport with sufficient validity.
  • Financial capability to cover your living expenses.

Application Process: 

Receive an acceptance letter from your chosen university.

Apply for the visa through your university or the relevant authorities (e.g., ICA).

Pay the visa processing fees.

Submit required documents, including acceptance letter, passport, academic records, medical test results, and proof of finances.

Attend a medical examination (if required).

Receive your Emirates ID and student visa upon approval.

Additional Resources: 

UAE government portal: https://visaguide.world/asia/uae-visa/residence-visa/student/

Federal Authority for Identity and Citizenship (ICA): https://icp.gov.ae/en/

Specific university websites: Each university might have additional requirements and procedures for visa applications.

Important Notes: 

Applying through your university can simplify the process and offer guidance.

Ensure you have sufficient financial resources to cover tuition fees, living expenses, and health insurance.

Consider seeking professional assistance if needed, especially for navigating complex requirements or specific cases. 

5. Transit Visa: 

The Transit Visa is suitable for individuals who are transiting through the U.A.E and have a connecting flight. This visa allows the holder to stay in the U.A.E for a short period, typically up to 96 hours. It is important to note that the Transit Visa is only available to individuals who meet specific criteria, such as having a confirmed onward ticket.

Transit Visa in the U.A.E.: A Smooth Layover in Paradise

The U.A.E. offers two convenient transit visa options for travelers passing through the country without leaving the airport: 

Types of Transit Visas: 

48-hour Transit Visa: Free of charge, allows you to stay within the airport transit area for up to 48 hours. Ideal for short layovers. I

96-hour Transit Visa: AED 50 (approx. USD 13.61), allows you to stay within the airport transit area or leave the airport for up to 96 hours. Perfect for exploring Dubai or Abu Dhabi during your layover

Eligibility: 

  • You hold a valid passport with at least 6 months validity from your arrival date.
  • Your onward flight ticket shows you are departing the U.A.E. within the validity period of the visa.
  • You meet basic health and security requirements.

Application Process: 

48-hour Visa: Obtainable upon arrival at most major U.A.E. airports with eligible nationalities. Check the ICA website for the latest list.

96-hour Visa: Apply online through your airline or authorized agencies before your arrival.

Tuesday, February 13, 2024

The United Arab Emirates signed a double taxation agreement with several countries on 12th Feb 24


 
On February 12, 2024, the United Arab Emirates signed double taxation agreements with several countries, including Kuwait, Bahrain, and Egypt. These agreements aim to avoid double taxation on income earned by residents of one country in the other country. 



The agreements were signed during the World Government Summit in Dubai, which was held from February 12 to 14, 2024. The theme of the summit was "Shaping Future Governments." 

The signing of these agreements is a positive development for businesses and individuals in the UAE and the other countries involved. The agreements will help to reduce the tax burden on cross-border income and make it easier for businesses to operate in multiple jurisdictions.

Benefits of Double Taxation Agreements (DTAs) for UAE Citizens and Trade:

For Individuals: 

Reduced tax burden: DTAs eliminate double taxation on income earned in one country but taxed in another. This can save individuals significant amounts of money, especially for those earning high incomes or working in both countries.

Increased investment and business opportunities: By reducing tax uncertainty, DTAs encourage individuals to invest and conduct business in partner countries. This can lead to more investment opportunities, higher returns, and potentially increased wealth.

Simplified tax compliance: DTAs often contain provisions that simplify tax filing and reporting requirements for individuals with income in both countries. This can save time and money.

For Businesses: 

Lower operating costs: Reduced tax burdens on profits earned overseas translate to lower operating costs for businesses. This can improve profitability and make them more competitive in international markets.

Easier cross-border expansion: DTAs can make it easier for businesses to expand operations into partner countries by reducing tax-related barriers and uncertainties. This can lead to increased market access, sales, and job creation.

Enhanced investor confidence: By providing clarity and stability on tax matters, DTAs can attract more foreign investors to the UAE, boosting economic growth and development.

How to Utilize DTAs: 

Consult a tax advisor: Understanding the specific provisions of each DTA is crucial to maximizing its benefits. A tax advisor can help individuals and businesses navigate the complexities of DTAs and ensure they are claiming all available benefits.

Plan your investments and business activities: Knowing the tax implications of activities in partner countries allows individuals and businesses to make informed decisions and structure their affairs in a way that minimizes tax burdens.

Keep records and documentation: Maintaining accurate records of income, expenses, and taxes paid in both countries is essential for claiming benefits under DTAs.

Additional Notes: 

The specific benefits of each DTA will vary depending on the terms of the agreement and the individual or business circumstances.

It is important to stay informed about any changes or updates to DTAs, as these can affect their benefits.

DTAs are just one aspect of international tax planning. Other factors, such as transfer pricing regulations and anti-avoidance rules, also need to be considered.

By understanding the benefits and utilizing DTAs effectively, UAE citizens and businesses can enjoy significant advantages in terms of reduced tax burdens, increased investment and business opportunities, and simplified tax compliance.

 I hope this information is helpful. Please let me know if you have any other questions.