“Legal Aspects of Doing Business in the Middle East” provides comprehensive coverage on the requirements for doing business, prepared by local practitioners with expertise in business transactions. In this chapter, practical insights, commentary and analysis are offered on: regulation for business, forms of doing business, free zones, licensing of business by the Emirates, labour and immigration regulations and many needful topics you need to know for doing business in the UAE.
Author: afridi-angell
The Corporate Immigration Review (UAE chapter), 10th edition
A multi jurisdictional guide which covers the prevailing conditions in the global restructuring market in 2020 and highlights some of the more significant legal developments and trends during that period.
Recent measures implemented in Abu Dhabi in response to COVID-19
On 30 May 2020, the Abu Dhabi Media Office posted through Twitter that the Department of Government Support has eased restrictions on some activities and issued a set of guidelines for working from and visiting government entities in Abu Dhabi.
The guidelines below come into effect from today, 1 June 2020, and are limited to individuals between the ages of 12 and 60. All individuals must follow preventive measures including social distancing (ensuring two-metre distance from other individuals), wearing face masks and adhering to the daily National Disinfection Programme timing in Abu Dhabi (from 10:00 p.m. until 6:00 a.m. the following morning).
I. Easing restrictions on some activities in Abu Dhabi
- Capacity at malls and mall restaurants is increased to 40 percent.
- Hotel beaches, museums and restaurants outside malls to reopen at 40 percent capacity.
- Outdoor and singular sports activities including horseback riding, cycling, cricket, running, golf, tennis, and sailing will resume.
II. Guidelines for working from and visiting government entities in Abu Dhabi
- No more than 35 percent of office staff will be allowed to work in government offices.
- Paperwork should be avoided.
- Face masks and gloves are to be worn at all times.
- Prayer rooms and shared areas are to remain closed.
- Glass barriers must be installed to keep a distance between employees and customers.
- Before leaving home, government employees in Abu Dhabi have been asked to take their temperature and avoid public transportation networks.
- Once at work, their temperature will be taken again and a QR code scanned.
- Employees who live with people who have tested positive for Covid-19, or who show symptoms, are exempt from having to return to offices, as are those who suffer from chronic underlying health conditions or who need to care for family members.
Restrictions on movement in and outside Abu Dhabi
Subsequently, on 31 May 2020, the Abu Dhabi Media Office posted restrictions announced by the Emergency, Crisis and Disaster Management Committee on movement in and outside the Emirate.
Movement between regions within Abu Dhabi (Abu Dhabi, Al Ain, and Al Dhafrah) as well as in and out of the Emirate of Abu Dhabi is banned for a period of one week starting tomorrow, 2 June 2020. The ban includes all residents including UAE nationals.
Exemptions from this movement restriction are available for employees of vital sectors, chronic disease patients visiting hospitals and the transportation of necessary goods.
Residents in each region are allowed to move within their region in line with the daily National Disinfection Programme timing in Abu Dhabi (from 10:00 p.m. until 6:00 a.m. the following morning). ■
Cram Down Financings in the Era of Covid-19
We are in unprecedented times. The Covid-19 pandemic has swept the globe like a tsunami and it continues to wreak havoc on countries, people and economies. The effects of the pandemic are evident now. For example, the US unemployment rate is presently at 14.7%. In the peak of the financial crisis of 2008, the unemployment rate was 10%. This rate is predicted to rise to 25% at the peak of the Covid-19 pandemic – equivalent to the unemployment rate of the US Depression of the 1930s!
Given the backdrop of the cataclysmic economic effects of the Covid-19 pandemic, it has also become increasingly harder to find willing investors for startup companies. Such a scenario will give rise to “cram down” financings. In such a cram down financing, only one or a few investors are willing to put any new money into a company. However, such money usually comes with a much lower valuation for the company (down round) and forced conversions from luxurious preferred shares to plain vanilla common shares which generally punish non-participating shareholders who end up ‘crammed down’ to a small ownership stake of the company in common shares.
Generally, such a cram down financing involves a few controlling venture capital investors increasing their control and ownership stake at the expense of the crammed down remaining investors who did not participate in the financing. In such circumstances, courts have held that controlling venture capital investors must satisfy the “entire fairness test” by proving that the transaction was fair to the minority crammed down shareholders. This means that a controlling venture capital shareholder may have a fiduciary duty to minority shareholders.
In such circumstances, controlling venture capital investors should insist on a broadly worded indemnity from the company to protect them against potential claims by the minority shareholders based on the entire fairness test and breaches of fiduciary duty.
The Covid-19 pandemic has resulted in a significant shortage of venture capital financing for companies. Such shortage can result in unique investment opportunities for those venture capital investors who are willing to invest in such uncertain times. However, such opportunities can result in potential liabilities that may be so significant as to wholly undermine such investment unless specific investor protections are negotiated. ■
Post Eid al Fitr Reopening Guidelines and Easing of Movement Restrictions
On 26 May 2020, Dubai Economy published the “Post Eid al Fitr” reopening Guidelines which took effect from Wednesday 27 May 2020 and include updates to the protocols for the wholesale and retail trade including salons and barbershops as well as valet parking. The Guidelines also provide tailored reopening protocols for cinemas, kids salons, auction houses, outsourced government service centres, and various entertainment sectors.
The Guidelines include the following:
- Offices in Dubai will be allowed to reopen with 50 percent of their headcount capacity.
- Salons and barbershops will be allowed to reopen with 50 percent of their staff and customer capacity.
- Malls and retails outlets will be allowed to increase their staffing and customer occupancy levels from the current 30 percent to 70 percent and they will be allowed to remain open from 6:00 a.m. until 10:00 p.m.
- The Dubai Metro will operate from 7:00 a.m. until midnight from Sunday to Thursday and from 10:00 a.m. until midnight on Fridays.
- Intracity buses will now operate from 6:00 a.m. until 11:00 p.m., with essential trips (to hospitals only) permitted on these buses between 11:00 p.m. and 6:00 a.m.
- Intercity buses will continue to be suspended until further notice.
All individuals must follow preventive measures including social distancing (ensuring two-metre distance from other individuals) and wearing face masks.
On 27 May 2020 the Crown Prince of Dubai and Chairman of the Executive Council announced that 50 percent of all Dubai government employees will resume working from their offices today, Sunday 31 May 2020, and the remaining will do so on 14 June 2020.
Return to work of private sector employees will be implemented in accordance with the reopening Guidelines as discussed above, with 100 percent private sector employees’ return to work pending further announcement.
The UAE also announced on Friday 29 May 2020 that starting from Saturday 30 May 2020 the daily National Disinfection Programme across the UAE except in Dubai will begin at 10:00 p.m. until 6:00 a.m. the following morning. In Dubai, timing of the sterilisation programme was changed on 27 May 2020 and runs from 11:00 p.m. until 6:00 a.m. the following morning. ■
Further Changes to Civil Litigation in the UAE
In the latest in a series of amendments to Federal Law No. 11 of 1992 (the UAE Civil Procedure Law) the recently issued Cabinet Resolution No. 33 of 2020 (the Resolution) brings about some important changes to how matters will be litigated in the UAE courts. The Resolution amends certain provisions of the regulations to the UAE Civil Procedure Code introduced by Cabinet Resolution No. 57 of 2018 (the Regulations), which introduced some of the most recent changes to civil litigation in recent years. This inBrief highlights some of the changes made by the Resolution that will significantly impact litigants.
1. The service of summons on parties has changed
The Regulations provided that a litigant or its attorney may personally affect service, including service through ‘modern technology’. However, following the Resolution, the ability of a litigant or its attorney to affect service through ‘modern technology’ is removed. Consequently, parties and their attorneys may no longer use audio or video calls, text messages, emails, etc. to serve summons.
The Regulations as amended by the Resolution also refers to a law (yet to be issued) on the service of summons via private process servers.
The Regulations as amended recognises that service may be (in addition to audio and video calls, text messages, etc., which were previously recognised) affected through smart applications which, among other things may include messaging platforms such as WhatsApp. As noted above however, summoning through such platforms will not be available to parties and their attorneys, but only to courts and authorised private process servers.
The process server is required to ensure that where ‘modern technology’ is used, the correct numbers, addresses, etc. are used. It will be interesting to see how this will be applied in practice.
The Regulations as amended provides that Service of summons on companies may be affected at a branch or office of the company in the UAE, if the dispute relates to such branch or office, or at the main office of the company to the legal representative of the company. Prior to the Resolution, service at the main office or on the legal representative was possible only if service at the branch or office was unsuccessful. If the main office is closed, or summons is refused, the server may now affix the copy of the summons at the premises without requiring prior permission from the court, which was required previously.
2. The Case Management Office (CMO) has added powers
CMOs were created some time ago in order to make litigation more efficient, with the aim of having the parties fully plead their case before the matter is referred to the judge.
Under the Resolution, supervisory judges are empowered to apply sanctions on parties, and to offer the parties an opportunity to settle their dispute.
If a party wishes to assert an argument that the action has been filed in the courts of the wrong Emirate (i.e. a challenge to the local jurisdiction of the court) or that the dispute should not be heard or the matter should be discontinued for a reason other than public policy, it should do so before the CMO.
Pursuant to the Resolution, the decision of a supervising judge of the CMO to refer a case to be heard under summary procedures for payment orders is no longer appealable.
3. Summary proceedings and the powers of the minor circuit courts have been expanded
Article 22 of the Regulations as amended provides that civil, commercial and labour claims of not more than AED 500,000 in value and claims challenging the validity of signatures are to be heard by the minor circuit of the court and disposed of in one hearing. This hearing must be fixed by the CMO within 15 days of the case being registered. A further 15-day extension may be made by the supervisory judge of the CMO, but no further extensions are permitted. If the court appoints an expert, a hearing must be fixed within three days of receiving the expert’s report.
Minor circuit courts may now hear disputes up to AED 10 million in value. The jurisdiction of the minor circuit court used to be AED 1 million. In disputes below AED 50,000, the judgment of the minor circuit is final and binding.
4. Changes are made to the payment order process
One of the more significant changes that the Regulations introduced was the broadening the availability of payment orders, which was previously limited to debts arising out of certain commercial instruments, to include debts which are confirmed in writing (as set out in our inBrief of 11 June 2019). The Resolution introduces further changes:
• Damages may now be sought as relief in payment order applications. Prior to the Resolution, only the outstanding debt and interest thereon could be claimed. This significantly increases the scope of payment orders.
• An application for a payment order may now be filed where the underlying agreement between the parties was concluded or performed (or had to be performed). Previously, the application could only be filed where the debtor was resident.
• Where a payment order is granted, and the debtor files an objection, the decision on the objection is not subject to appeal if the value of the order is less than AED 50,000.
• Where the value of the order is more than AED 50,000, an appeal on an objection may be filed to the Court of Appeal. The Resolution provides that the Court of Appeal must make a decision on the merits, and cannot return the matter to the Court of First Instance.
5. The requirements for applying for a travel ban have been clarified
The Resolution amends the Regulations to give further clarity with respect to travel bans issued by the court. In summary:
• The debt owed must be for a specified amount (for example, a claim for damages will not qualify), which is unconditional and not be less than AED 10,000.
• There must be ‘serious reasons’ to believe that the debtor is a flight risk.
• The claim for payment must be supported by documentary evidence.
• The applicant must submit a guarantee to the court to cover losses or damages the debtor may suffer if the application for a travel ban is later found to be wrongful.
6. Provision has been made for conducting litigation more efficiently
The grounds for which a postponement may be sought is now limited. Postponement must be for an urgent reason, such as death, loss of capacity of a litigant, intervention of a third party, allegation of forgery, or to submit evidence of a criminal action being filed which is relevant to the merits of the dispute. Each postponement can be no more than two weeks. The Regulations have also been amended so that a court is required to issue its final judgment within 100 days from the matter being referred to it from the CMO. It will be interesting to see how strictly the courts comply with this deadline in practice.
7. Execution judges have broader discretion to accept payment plans
Following the Resolution, execution judges have the discretion to accept instalments plans spanning up to three years to satisfy a judgment debt. Previously, it was limited to one year. This will be seen as a welcome development, particularly in the current economic circumstances.
If a party wishes to object to execution of a judgment, however, a deposit of AED 5,000 is payable. The deposit is forfeit if the objection is unsuccessful.
8. Representing a corporate entity
A person who appears in Court on behalf of a company must have a power of attorney attested by the Notary Public. Previously, an attested power of attorney was not required. In addition, a person (who is not an Advocate) representing a company must be an Emirati possessing a law degree, and who has been employed by the company for at least one year.
The Resolution came into effect on 1 May 2020. ■
Revised Measures in Response to COVID-19: Sterilisation and opening timings and an updated list of violations and fines
Timings
On 18 May 2020, the UAE government announced the following timings with effect from today, 20 May 2020:
- the National Disinfection Programme will take place between 08:00pm (not 10:00pm) to 06:00am the following day.
- working hours of butchers, mills and cafes will be from 06:00am to 08:00pm.
- commercial centres and malls will be open from 09:00am to 07:00pm (with new opening hours to be announced after the upcoming Eid.) People over 60 years old and children below 12 years old will continue to be denied access to these premises.
Retail stores, cooperatives, groceries, supermarkets and pharmacies will remain open for 24 hours, seven days a week during the National Disinfection Programme.
List of Violations and Fines
On 18 May 2020, the Emergency, Crisis and Disasters Prosecution Department of the Public Prosecution announced an updated list of the violations and fines that were originally set out in Resolution 38 of 2020. The changes take effect from 18 May 2020.
The list below follows the numbering of Resolution 38 of 2020. Some violations and fines have remained the same, others have been revised, and new violations have been introduced. For ease of reference, the new changes and additions are in red.
The list of violations and fines under Resolution 38 of 2020 appeared in our previous InBrief dated 29 March 2020.
|
No. |
Violation | Fine |
| 1 |
|
AED 50,000 |
| 2* |
|
AED 50,000 |
|
AED 50,000 | |
| 2 bis* |
|
AED 10,000
The offender will also bear the cost of the electronic device, if lost or damaged. |
|
AED 20,000
The offender will also bear the cost of all damages. |
|
|
AED 10,000 | |
| 3 |
|
AED 50,000 for the owner of a shopping centre and closure of the facility for one month.
AED 5,000 for the owner of a retail shop outside a shopping centre. |
|
AED 20,000 | |
|
AED 10,000 | |
| 4 |
|
AED 10,000 for whoever invites or organises the same, and AED 5,000 for participants. |
| 5 |
|
AED 5,000 (which was previously AED 2,000). |
| 6 |
|
AED 3,000 |
|
AED 20,000 | |
|
AED 5,000 | |
|
AED 1,000 | |
|
AED 1,000 | |
|
AED 2,000 | |
| 7 |
|
AED 10,000 |
| 8 | (This fine under Resolution 38 of 2020 is cancelled.) | |
| 9 |
|
AED 5,000 (which was previously AED 3,000). |
| 10 |
|
AED 3,000 for the driver (which was previously AED 1,000). |
|
AED 5,000 and the vehicle will be impounded for a month. | |
| 11 |
|
AED 3,000 (which was previously AED 10,000).
|
|
AED 5,000 for the employer or owner of company, establishment or worker’s accommodation.
AED 500 for the employee. |
|
|
AED 3,000 (which was previously AED 10,000). | |
|
AED 5,000 for the owner of such facilities. | |
|
AED 3,000 | |
|
AED 3,000 for the owner of the company or establishment. | |
| 12 |
|
AED 5,000 for the manager of the company or establishment. |
| 13 |
|
AED 1,000 |
| 14 |
|
AED 5,000 |
|
AED 1,000 | |
| 15 |
(This is not applicable to employees within the vital sectors who are permitted to move during curfew times, which includes medical, technical and administrative personnel working within governmental and private health facilities.) |
AED 3,000 |
| 16 |
|
AED 10,000 for the owner of the company or establishment and driver of the private vehicle. |
(Applicable to workers within the exempted category)
|
AED 5,000 for the owner of the company or establishment
AED 500 for the employee or worker. |
|
| 17 |
|
AED 30,000 for the individual offering, organizing and mediating private lessons.
AED 20,000 for the owner of the private place where the private lesson was held. |
| 18 |
|
AED 20,000
|
|
AED 5,000 |
Violators of Article 2 and 2 bis (marked with an asterisk (*) above) will be referred to the Emergency, Crisis and Disasters Prosecution Department of the Public Prosecution to be charged for a criminal offence under Article 40 of the Federal Decree Law 2 of 2011 on the Establishment of the National Emergency and Crisis Management Authority. The penalty of such offence is imprisonment for a period not exceeding six months, or a fine not exceeding AED 100,000, or both.
The Attorney General has the authority to order the publication of the pictures and name of violators in media sources as it deems necessary. ■
* * * *
The ADGM Companies Regulations 2020
The Abu Dhabi Global Market has announced amendments to its Companies Regulations. The Companies Regulations 2020 (2020 Regulations) repeal the Companies Regulations 2015 (as amended). We have summarised below the key changes under the 2020 Regulations.
| Companies Regulations 2020 | Effect of amendment |
| Section 3 | One of the ways in which a restricted scope company can be incorporated is if the founding members are a group of people who are from the same family (as approved by the Registrar). What constitutes being a member of the same family has been broadened under the 2020 Regulations to include grandchildren, great grandchildren and adopted children (and their spouses). |
| Section 450 | This section now clarifies that a financial institution which is a FinTech Participant will not be excluded from the small companies’ exemption from audit. |
| Part 23 (sections 778 – 783) | The regulations now use the term “confirmation statement” as opposed to “annual return”. The contents of the confirmation statement and the timelines for delivery of the confirmation statement remain the same. |
| Section 937 | The amendments to the regulations state that the Registrar will continue to authenticate paper copy documents with an official seal however the amendments clarify that electronically generated documents will not require to be sealed. |
| Section 940 | The right to request a certificate of incorporation has been amended under the 2020 Regulations such that all certificates of incorporation will now be electronically generated as opposed to signed and authenticated by the Registrar. However, a request can still be made for a paper copy certificate of incorporation and such request may be subject to a fee as determined by the Board of Directors of the Abu Dhabi Global Market (Board). |
| Section 960 | Continuing the theme under section 940 of the 2020 Regulations, electronic as opposed to paper copies of publicly available information on the register will be made available by the Registrar on request. If a request for a paper copy of such information is required, the provision of such information may also be subject to fees as imposed by the Board. |
* * * *
Afridi & Angell’s corporate department works with many ADGM companies and has extensive experience in advising such companies. Should you have any questions with respect to the changes under the 2020 Regulations or more generally on ADGM companies, please contact the author, Danielle Lobo (partner), or your usual Afridi & Angell contact. ■
DMCC Employment Guidelines during the COVID-19 Precautionary Measures Period
The DMCC Authority recently passed DMCC Guidelines 1 of 2020 (DMCC Guidelines) setting out what actions DMCC employers can take with respect to their employees during the COVID-19 Precautionary Measures Period.
DMCC entities can:
• Request employees to work remotely and implement means to monitor them (without infringing their privacy). Working remotely does not however apply to key employees working in Vital Industries. “Vital Industries” are the key industry sectors as announced by the Supreme Committee of Crisis and Disaster Management from time to time, which are eligible for a work-related movement permit (now required for movement around Dubai between 10:00 p.m. to 6:00 a.m.), available from the Dubai Police website. The Supreme Committee of Crisis and Disaster Management was established under the leadership of the Commander of the Dubai Police pursuant to Dubai Decree 22 of 2006 and Dubai Rule 14 of 2006. For the Vital Industries, please see the list of Vital Sectors and Support Sectors in our InBrief dated 6 April 2020.
• Place employee(s) on paid leave without employee’s consent.
• Temporarily reduce employee’s basic salary for a defined period (which must be mutually agreed). In spite of this temporary reduction, the employee’s end of service gratuity will remain unaffected, and will continue to accrue according to the employee’s basic salary prior to the temporary reduction.
• Place employee(s) on unpaid leave for a period (which must be mutually agreed).
• Collect and share employee’s personal data with competent UAE authority (if requested) as reasonably required for the health, safety and wellbeing of their employees.
DMCC employers are discouraged from filing absconding reports against terminated employees who may be facing delays in cancelling their visas during the COVID-19 Precautionary Measures Period.
Where the DMCC Guidelines are silent, the DMCC entities shall remain subject to the UAE Labour Law. In contrast, the DMCC has not made DMCC entities subject to the requirements of Ministerial Resolution 279 of 2020 (on employment stability in the private sector) and Ministerial Resolution 281 of 2020 (on maintaining safe places of work), either in the DMCC Guidelines or on its website. Accordingly, the specific requirements imposed in those Resolutions would not apply to DMCC entities, unless the DMCC decides at a later date to make them applicable. For details of these Resolutions, please see our InBriefs dated 1 April 2020, 3 April 2020 and 6 April 2020 and our Legal Alert dated 6 April 2020.
As to accessing office premises of DMCC entities, the DMCC Authority has followed the decision of the Supreme Committee of Crisis and Disaster Management dated 23 April 2020 whereby a maximum of 30% of the workforce of all organisations would be allowed to work from the office premises. For more details of this decision, please see our InBrief dated 26 April 2020. DMCC entities based in the DMCC Business Centre (i.e., those with flexi desks, serviced desks or serviced offices leased from DMCC Business Centre) (Business Centre Members), however, are additionally subject to the recently issued DMCC Business Centre Health & Safety Policy, which restrict them to having one employee present at the office unit at any one time (and such employee must not be 60 years and older, or pregnant, or have chronic diseases). Such employee must also undergo thermal scanning available in designated areas within the DMCC Business Centre facility. ■
* * * *
New Measures Implemented by the UAE Authorities in Response to COVID-19
Below is a summary of key new measures that have been implemented by various UAE authorities since 30 April 2020 and the time of this inBrief, 12:00 noon on Thursday, 7 May 2020.
I. Economic Relief Measures
A. Dubai Healthcare City Authority (DHCA) announces business relief package
On 4 May 2020, the DHCA announced a business relief package for its free zone community consisting of waivers and discounts for directly-impacted segments, additional benefits for businesses operating in DHCA-owned properties, and waivers and discounts in regulatory fees for hospitals, clinics, education providers, research institutions, retail stores, hotels, F&B outlets, consultancies, and support services among businesses.
Relief measures include:
• for directly-impacted segments: 25 percent to 100 percent discount on commercial and clinical fees. This segment includes certain outpatient clinics, education providers, hospitality and support services, all of which have had to close or significantly reduce operations to comply with national precautionary and preventative measures, resulting in reduced revenues and customer footfall.
• for businesses operating in DHCA-owned properties: 25 percent to 50 percent discount on commercial and clinical fees. These businesses exclude pharmacies and supermarkets which have been following regular operations.
The reduced regulatory fees can be availed for a period of three months with the exception of certain fees related to commercial licenses and clinical operating permits, which can be availed until the end of 2020.
B. Abu Dhabi Customs launches a package of economic incentives
On 5 May 2020, the General Administration of Abu Dhabi Customs launched a package of economic incentives to support importers in Abu Dhabi and to mitigate the consequences of the current exceptional circumstances as a transit gateway for all vital sectors. The incentives include:
• Postponement of payment of customs duties of importers for 90 days, from the date of the customs statement.
• Accepting institutional guarantees instead of bank guarantees for customer accounts.
• Pre-clearance services prior to shipment arrival through the customs operations system, which results in saving time and costs on companies.
• Self-clearance services that allow companies to clear their shipments themselves without resorting to customs clearance under the controls Customs licences.
• Licensing bond warehouses with no fees.
• Extension of the transit period from three to five days for the purposes of arrival of goods to their destination.
• Cancellation of the insurance refund fee for the temporary entry insurance.
C. Dubai South economic stimulus package
On 3 May 2020, Dubai South Free Zone announced economic stimulus incentives to individuals and companies in its free zone consisting of:
• Flexible payment plans with easy instalment schemes.
• Waiver of penalties on late renewals and cancellations of contracts and licenses.
• A 20 percent reduction on licence fee renewals.
• Waiver of first year license fees for new clients in the aviation, logistics and e-commerce sectors and the Business Park.
• The opportunity to apply for a lease deferral request of up to six months for clients operating in the Business Park Free Zone.
• A reduction of up to 25 percent on the renewal fees for Dubai South Business Centre clients renewing their contracts between now and October 2020, as well as the flexibility to settle annual rental fees in up to four instalments.
• A reduction of up to 25 percent of rental fee for individuals and companies looking to establish a new business.
D. Ruler of Umm Al Quwain Emiri Decree on economic incentive package
On 30 April 2020, the Ruler of Umm Al Quwain issued Emiri Decree No. 2 of 2020 (Decree) regarding an economic incentive package to support businesses and individuals. The Decree became effective on the date of its issuance.
The Decree stipulates the following incentives:
• A discount of 50 percent on fees related to new business licences and commercial, industrial and professional licence renewals at the Department of Economic Development.
• Cancellation of fines for expired licences of commercial, industrial and professional companies and economic establishments in the Emirate.
• A 50 percent fee reduction on fees on activities related to Umm Al Quwain Chamber of Commerce and Industry.
In a related measure, Resolution No. 3 of 2020 exempts companies that halted their services due to the coronavirus crisis from fees and fines.
E. Fujairah waives licensing and tax fees for current year
On 30 April 2020, the Ruler of Fujairah issued Resolution No. 4 of 2020 regarding exemption from local licensing fees and taxes for the current year.
Businesses exempted from licensing fees include various professions in the market, the Friday Market, meat and poultry stores, tailors, cinemas, gaming centres and stores located in shopping malls, hotels, fitness centres, health clubs, wedding halls, and men’s and women’s salons.
Resorts, hotels, and hotel apartments shall be exempted from the prescribed local tax.
Exemption will be for the whole year starting from 1 January 2020 until 31 December 2020.
II. Labour-related Matters
Ministry of Human Resources and Emiratisation (MOHRE) stated that employee wages must be safeguarded and paid on time.
In a statement issued on 30 April 2020, the MOHRE noted that employers must adhere to Ministerial Resolution No. 739 of 2016 concerning the protection of wages and must commit to ensuring employee wages are paid on time via the Wages Protection System. MOHRE affirmed that private-sector employers’ commitment to pay wages on time, as well as documenting early leave and the reduction in employee wages, whether temporary or permanent, would guarantee the rights of both parties in the business relationship. It emphasised that adherence by employers towards fulfilling their legal obligations to their employees, particularly with regards to remuneration, is of the utmost importance in ensuring the stability of the working relationship, employee productivity, and business continuity.
III. Precautionary Measures
A. New measures implemented by the Abu Dhabi Department of Economic Development (ADDED)
On 1 May 2020, ADDED issued a circular to the managers and owners of shopping malls and centres, food retailers and pharmacies operating within Abu Dhabi to provide thermal inspection devices and cameras at the main entrances of their facilities.
This measure is in addition to shopping malls’ adherence to all guidelines and regulations that were set as conditions for their reopening. These guidelines include keeping the capacity of shoppers inside a mall up to a maximum of 30 percent; ensuring social distancing and spacing between individuals while shopping; and ensuring that general service companies operating in malls conduct frequent cleaning and sterilisation of escalators, elevators, washrooms and other places that are mostly used by shoppers.
Later in the week, on 5 May 2020, ADDED affirmed that owners of restaurants, cafeterias and food outlets across Abu Dhabi, whether located inside or outside malls and shopping centres, should not receive customers without prior coordination with local departments with regards to compliance with the guidelines related to the health practices and preventive measures aimed at stopping the spread of COVID-19.
B. Reopening of commercial centres in Sharjah
On 3 May 2020, Sharjah Economic Development announced that malls, salons and eateries in the Emirate will be allowed to reopen from 12:00 noon to 9:00 p.m. Food stores and pharmacies will be allowed to open 24 hours a day. Reopening of all establishments is contingent on their compliance with anti-Coronavirus measures in line with Circulars issued by the Department. Shoppers will have to wear face masks and gloves at all times.
C. People over the age of 60 and children below the age of 12 are prohibited from entering shopping malls and retail stores
In a joint announcement issued on 6 May 2020, the Ministry of Health and Prevention and the National Emergency Crisis and Disaster Management Authority stated that people over the age of 60 and children below the age of 12 are prohibited from entering shopping malls, cooperative societies, supermarkets, as well as retail stores located outside shopping centres.
D. Three people or more from same family can travel together in the same car
On 3 May 2020, the Dubai Police clarified that members of the same family as well as first-degree relatives are exempt from the limitation on the number of people who may travel in the same vehicle. Such persons will no longer be subject to fines for exceeding the three-person limit.■