Category: inBriefs

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. ■

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	Violating an order for mandatary hospitalisation.	AED 50,000
2*	Failing to abide by home quarantine or re-testing instructions.	AED 50,000
	Failing to abide by quarantine instructions at private quarantine facilities or re-testing instructions.	AED 50,000
2 bis*	Failing to install a smart application or carry an electronic tracking device for home quarantine cases. Destroying, losing or disrupting the network of electronic tracking device for home quarantine cases.	AED 10,000 The offender will also bear the cost of the electronic device, if lost or damaged.
	Hacking, destroying, deleting, damaging or changing the program of the smart application or electronic tracking device. Illegally obtaining data or information in the smart application or electronic tracking device.	AED 20,000 The offender will also bear the cost of all damages.
	Failing to notify the relevant contact centre, without an acceptable excuse, that the electronic tracking device is lost, damaged or malfunctioned within 24 hours of such event.	AED 10,000
3	Violating the closure or operating hours of an educational institution, movie theatre, gym, nightclub, commercial center, outdoor market, park, leisure centre, cafe, shopping mall, retail shops, gardens, beaches, public swimming pools, hotel swimming pools, and restaurant (the Facilities). Receiving any visitors in any of the Facilities in violation of the instructions.	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.
	Failing to install thermal cameras, or taking any other precautionary measures as required by the relevant authorities, at any of the Facilities.	AED 20,000
	Failing to temporarily suspend sailing cruises. Violating procedures or measures imposed by the relevant authorities when resuming the operations of sailing cruises.	AED 10,000
4	Violating prohibitions or restrictions on gatherings, meetings, private and public celebrations, and on gathering or being present at public locations, private farms, or agricultural estates.	AED 10,000 for whoever invites or organises the same, and AED 5,000 for participants.
5	Violating measures of the Ministry of Health & Prevention regarding those coming to the UAE from countries infected by any communicable diseases.	AED 5,000 (which was previously AED 2,000).
6	Failing to take the appropriate health procedures regarding the regulation of markets, roads, and other public locations exempt from temporary closure. Failing to implement an order for removal of any temporary structure or the disposal of goods, clothes, or other items are believed to have been contaminated or potentially contaminated with any disease agent and cannot be disinfected.	AED 3,000
	(Applicable to accredited health laboratories) Failing to link the data of tested individuals to relevant authorities	AED 20,000
	Failing to clean and sterilise equipment, devices, machines within establishments as per the instructions of the relevant authority.	AED 5,000
	Violating instructions of the relevant authority relating to cleanliness and personal hygiene practices of workers within establishments or shared housing accommodations.	AED 1,000
	Failing to use chemicals (for cleaning, sanitisation and disinfection purposes) or any other material as per the instructions of the relevant authority.	AED 1,000
	Failing to preserve the health and safety and prevent spread of communicable diseases as per the decisions and instructions of the relevant authority.	AED 2,000
7	Failing to take precautionary measures for the crew of accommodation vessels.	AED 10,000
8	(This fine under Resolution 38 of 2020 is cancelled.)
9	Violating the provisions of the Implementing Regulations for the Law on the Prevention of Communicable Diseases as regards the burial or transport of the body of any person who dies from a communicable disease.	AED 5,000 (which was previously AED 3,000).
10	Exceeding the maximum permitted number of passengers in a car by more than three persons. (This does not apply where members of the same family or second-degree relatives are in a car.)	AED 3,000 for the  driver (which was previously AED 1,000).
	Using a vehicle to transport goods, objects or other items against its authorized purpose and in violation of health and safety regulations.	AED 5,000 and the vehicle will be impounded for a month.
11	Failing to wear medical or cloth facemasks in closed public places, shopping centres, public transportation, crowded public areas, high traffic areas, or private vehicle.	AED 3,000 (which was previously AED 10,000).
	Failing to wear medical or cloth facemask at a company, workplace, housing accommodation.	AED 5,000 for the employer or owner of company, establishment or worker’s accommodation. AED 500 for the employee.
	Failing to observe the safe distance between individuals.	AED 3,000 (which was previously AED 10,000).
	Failing to take necessary measures to ensure social distancing and permitting overcrowding and assembling within establishments, cafes, restaurants, beaches, gyms, public swimming pools, hotel pools.	AED 5,000 for the owner of such facilities.
	Exercising, taking part in sports or recreational activities in open places or hotel beaches, walking or gathering in gardens or public places in violation of the preventative measures imposed by the relevant authority.	AED 3,000
	Violating the maximum number of employees allowed within a facility, commercial establishment or workplace.	AED 3,000 for the owner of the company or establishment.
12	Failing to take sterilisation procedures in means of public and private transport.	AED 5,000 for the manager of the company or establishment.
13	Approaching or going to healthcare facilities in cases other than the prescribed ones.	AED 1,000
14	Refusing to undergo a medical test upon demand.	AED 5,000
	Re-taking a laboratory test for Coronavirus at accredited health laboratories within two weeks without a valid reason	AED 1,000
15	Leaving home or travelling during the curfew times announced by the relevant authority for a reason other than to buy food and medicine and to attend to health emergencies. (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	Violating the ban on transferring workers between Emirates. (This is not applicable to workers of exempted categories.)	AED 10,000 for the owner of the company or establishment and driver of the private vehicle.
	(Applicable to workers within the exempted category) Exceeding the maximum capacity imposed by the relevant authority (being half capacity of vehicles) when transporting workers between Emirates or within an Emirate. Failing to wear masks, and social distance when boarding and disembarking from the vehicle.	AED 5,000 for the owner of the company or establishment AED 500 for the employee or worker.
17	Carrying on private lessons at home, or public or private places (with direct contact), whether for or without compensation.	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	Collecting, copying, broadcasting, disclosing, publicizing, transmitting or circulating health data or information of individuals that tested positive, are undergoing treatment or examination with the health authorities.   Cancelling, deleting, destroying, or altering any such data or information.	AED 20,000
	Violating information security standards approved by government or private health facilities.	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 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. ■

 

* * * *

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.■

Below is a summary of key new measures that have been implemented by various UAE authorities since 25 April 2020 and the time of this inBrief, 6:00 p.m. on Thursday, 30 April 2020.

 

I. Economic Relief Measures

 

A. Abu Dhabi Global Market (ADGM) announces further incentives to support businesses

 

On 29 April 2020 the ADGM Registration Authority enacted incentives for new businesses, aimed at supporting the establishment of their operations amid the COVID-19 pandemic.

 

These incentives are in addition to previously introduced measures by the ADGM which included, among others, a 50 percent waiver on the imposed ADGM FSRA supervision fee, and a 100 percent waiver on the renewal of commercial licensing fees, which will be applicable until 25 March 2021.

 

The newly enacted incentives for new businesses will commence on 3 May 2020 until 31 December 2020, and include the following:

 

• A 50 percent reduction on fees associated with the incorporation of new ADGM companies and limited liability partnerships (including branches). The incentives will be applicable to ADGM’s new applicants for financial, non-financial and retail license types, excluding special purpose vehicles, ADGM foundations, venture capital firms, tech start up applicants (seed and emergent), accelerators and incubators, and professional associations.

 

• A 100 percent reduction on the continuation fee for companies wishing to continue into ADGM from a foreign jurisdiction.

 

• Existing ADGM companies and limited liability partnerships are now able to request up to three months extension on the nine-month timeline for filing of annual accounts by demonstrating to the Registrar the circumstances hindering their ability to comply with such obligation.

 

B. Dubai Airport Freezone Authority (DAFZA) incentive packages

 

On 26 April 2020 DAFZA launched the following incentive packages to support companies operating in the free zone:

 

1. postponing lease payments for up to three months and facilitating financial payments into easier monthly instalments;

 

2. exempting retailers from lease payments for a period of up to three months;

 

3. refunding security deposits on leased spaces and labour guarantees to companies;

 

4. exempting new companies from registration and licencing fees; and

 

5. cancelling fines issued to companies.

 

C. Sharjah Publishing City Free Zone (SPCFZ) economic relief packages

 

On 25 April 2020 the SPCFZ announced the following economic relief packages to support the business continuity of operating enterprises:

 

1. a three-month rental fee waiver to ready officeholders who occupy both furnished and unfurnished spaces;

 

2. a 15 percent rental fee waiver for those who occupy open spaces at SPCFZ; and

 

3. a 30 percent package fee reduction for all Flexi desk and Dedicated desk customers.

 

The SPCFZ management has also confirmed that they will not encash any post-dated customer instalment cheques from April to June 2020, and will waive any penalties they may have imposed on businesses until the end of 2020.

 

II. Precautionary Measures

 

Instructions from the Federal Transport Authority – Land & Maritime (FTA)

 

On 27 April 2020 the FTA issued Circular 8 of 2020 listing the following precautionary measures aimed at protecting workers in the UAE ports and territorial waters.

 

1. Dry docks and ship repair yards

 

a) All vessels are prohibited from entering any of the UAE dry docks or ship repair yards until the vessel and its crew completes 14 days of quarantine prior to the date of departure from its last port of departure.

 

b) Notwithstanding point a) above, a vessel operator, in coordination with the vessel agent, shall inform the competent UAE health authorities of any symptoms of suspected COVID-19 cases in order to avoid penalties imposed in the UAE for failure to report such cases.

 

2. Commercial and private cruising boats

 

a) All commercial and personal recreational sailing activities will be suspended during the National Disinfection Programme. Individuals residing on islands and mountainous districts who rely on water boats as their primary mode of transport to reach mainland are excluded from this precautionary measure.

 

b) Foreign yachts will not be allowed entry into nor will they be issued permits to cruise UAE territorial waters.

 

3. Wooden vessels

 

Wooden vessels allowed into UAE waters and ports are limited to the following:

 

a) Vessels loaded with food supplies and fish.

 

b) Empty vessels with a pre-existing contract to load ready goods.

 

c) Empty, foreign-registered vessels without a pre-existing contract to purchase goods in the local UAE market are not allowed entry into the UAE ports.

 

d) Vessels are allowed to remain in UAE waters and ports for a maximum period of seven days while maintaining social distancing protocols and no mixing with crew of other vessels.

 

III. Technology

 

AlHosn UAE App

 

The Ministry of Health and Prevention, Abu Dhabi Health Authority and Dubai Health Authority have jointly launched an app named AlHosn UAE, an official digital platform for COVID-19 tests in the UAE.

 

The app can be downloaded free of charge on smart devices operating on Android and IOS and will be an official digital platform for COVID-19 tests in the UAE.

 

The app combines the benefits of StayHome and TraceCovid, the two apps previously launched by the Department of Health. It also guarantees high degree of privacy protection to users through artificial intelligence and other technological tools.

 

Similar to the TraceCovid app, AlHosn UAE app depends on the use of short-term Bluetooth signals, to show whether the person is in close proximity to people who have had contact with patients infected with the COVID-19 virus. This is possible if infected patients also have the same app on their smart phones as the phones exchange the metadata stored in them. The app is encrypted and the data remain only on the user’s phone. Through this data, the competent health authorities can quickly identify people at risk of transmission of the virus so they can communicate with them. ■

 

 

Below is a summary of new developments and key new measures that have been implemented by various UAE authorities since 19 April 2020 and the time of this inBrief, 6:00 p.m. on Saturday, 25 April 2020.

 

I. First Phase of Easing of Lockdown and Movement Restrictions in Dubai

 

The Supreme Committee of Crisis and Disaster Management has announced a partial reduction in the restrictions on movement in Dubai starting from Friday 24 April 2020.

All individuals must follow preventive measures including ensuring two-metre distance from other individuals and wearing face masks. Those who do not wear a mask will be subject to a fine of AED 1,000.

 

A. Movement of the general public

 

• Individuals will be able to leave their homes between 6:00 a.m. and 10:00 p.m. without a permit.

• Exercising outside the home: Members of the public are allowed to exercise outside their homes provided they do not leave their area of residence. They can undertake activities such as walking, running or cycling for one to two hours each time. Only a maximum of three persons can exercise at the same time.

• Members of the public are also permitted to visit first and second-degree relatives. Gatherings should be restricted to not more than five people. However, visiting high-risk individuals (individuals above 60 years and those with underlying medical conditions) should be avoided. It is prohibited to hold gatherings in public or private places.

• Ramadan tents and Majlises are not allowed within homes and in public places.

 

B. Shopping malls and commercial outlets

 

• Shopping malls, markets and commercial outlets will be open daily to the public from 12:00 p.m. to 10:00 p.m. Furthermore, restaurants and shops are allowed to operate at a maximum of 30 percent capacity at the shopping malls.

• Malls and retail outlets are not allowed to hold entertainment events to avoid congestion and crowding.

• There will be no valet parking at malls and restaurants. The first hour of parking in shopping malls will be free.

• Only 25 percent of the parking spaces will be open in order to reduce overcrowding in malls. The public should visit a mall only when absolutely necessary.

 

C. Restaurants and cafés

 

• Restaurants and cafés are allowed to operate normally but are not permitted to serve shisha and buffet. Dine-in customers are allowed but should occupy only a maximum of 30 percent of the outlet’s capacity.

 

D. Public transport

 

• Public transport services, including Dubai metro services, will be resumed from Sunday 26 April 2020. The normal tariff system will be reintroduced.

• Red and green line metro services will operate between 7:00 a.m. and 11:00 p.m.

• Preventive measures should be strictly followed by all passengers and staff in metros, taxis and buses and at public transport stations including maintaining physical distance and wearing face masks.

• Only two passengers are allowed in one taxi.

• Water transport, tram, limousine, and car sharing services will continue to be suspended.

 

E. Administrative offices for companies and institutions

 

• A maximum of 30 percent of the workforce of all organisations will be allowed to work from their offices while the rest will be required to work from home.

• Meetings should be held at the office only if it is absolutely necessary. Attendees should not exceed five people and each person should maintain a two-metre physical distance from others.

• Daily sterilisation of the workplace is mandatory and employees and visitors should be provided with sanitisers at all times. Everyone is required to wear face masks when at the workplace.

 

F. Re-opening guidelines in Abu Dhabi

 

The Abu Dhabi Department of Economic Development issued Circular 26 of 2020 on 22 April 2020 concerning guidelines and precautionary measures for re-opening of malls and shopping centres in Abu Dhabi. Those guidelines are similar to those of shopping malls in Dubai except opening hours will be from 12:00 p.m. to 9:00 p.m.

 

II. Economic Relief Measures

 

A. Dubai World Trade Centre Authority (DWTCA) releases COVID-19 measures to assist with financial sustainability and operational continuity

 

On 22 April 2020 the DWTCA unveiled a series of measures aimed at supporting enterprises within DWTCA to better manage their fixed operating costs and liquidity during COVID-19. These measures include:

 

1. Meetings Incentives Conferences and Exhibitions Business

 

a. for organisers – no cancellation and/or rescheduling fees; no penalties for late payments; allow carry forward of pre-paid fees as credit to 2021; and

b. for exhibitors (DWTC-owned exhibitions) – full refund on cancelled events and where new schedule is not feasible for participants.

 

2. Retail Tenants

Up to six-months rent-free on base rent (1 April 2020 – 30 September 2020) for retail tenants in the Dubai International Convention and Exhibition Centre and One Central, impacted by mandatory public lock-down restrictions (e.g., Government enforced cancellations, and/or temporary facility closures).

 

3. SMEs and Start-up Tenants

 

Up to three-months base rent deferment for DWTCA commercial tenants (1 April 2020 – 30 June 2020).

 

4. Free Zone Businesses (effective for three months starting April to June 2020)

 

• seventy percent rebate on annual fees for all category-specific business registrations and licenses (new and renewal);

• fifty percent rebate on annual fees for general trade licenses and registrations; and

• zero percent administration fee on all visas – new, transfer and renewals.

 

B. Dubai Silicon Oasis Authority (DSOA) stimulus packages

 

The DSOA announced on 19 April 2020 that it would be implementing exemptions, incentives and flexible payment plans for companies, commercial tenants, and residents occupying buildings owned by the Authority.

 

1. Residential Projects

 

a. up to two months deferral on rent payments which can be rescheduled based on a payment plan over the remainder of the lease duration;

b. waiver of late payment fines until 31 August 2020;

c. monthly rental payment plans for existing and new tenants;

d. up to 10 percent discount on rental value upon renewal; and

e. additional discount of AED 2,000 for apartments and AED 5,000 for villas if annual rent is paid on time and in one instalment.

 

2. Retail Sector

 

a. rent waiver from 15 March 2020 for restaurants, shops, and gyms impacted by the closure until work is resumed;

b. postponement of rental payments for a three-month period;

c. waiving late payment fines until 31 August 2020;

d. reducing marketing fees by 25 percent;

e. up to 10 percent discount on rental value upon renewal for existing and new retailers;

f. additional 5 percent discount on the annual rent if paid on time and in one instalment; and

g. offering flexible payment plans.

 

3. Companies 

 

a. postponement of rental payments for a three-month period;

b. waiving late payment fines until 31 August 2020;

c. extending grace period until end of May 2020 for new companies;

d. up to 10 percent discount on rental value upon renewal for existing and new companies;

e. additional 5 percent discount on the annual rent if paid on time and in one instalment; and

f. offering flexible payment plans.

 

4. Dubai Technology Entrepreneur Campus

 

a. postponement of rental payments for a three-month period;

b. waiving late payment fines until 31 August 2020;

c. flexi desk and fixed desk tenants can pay rent in up to six instalments; and

d. additional five percent discount on the annual rent if paid on time and in one instalment.

 

C. Implementation guidelines of the Targeted Economic Support Scheme (TESS)

 

On 19 April 2020 the UAE Central Bank (CBUAE) released an announcement outlining regulations and guidelines in relation to TESS. Some of these guidelines include the following:

 

• Banks are urged to process more applications from individuals, corporations and SMEs whose business operations are affected by the implications of COVID-19.

• Banks are expected to retain sound lending standards and are required to treat all their customers fairly.

• During the validity of TESS, which runs up to year end 2020, banks are expected to postpone the payments of interest and/-or principal of loans for customers/individuals/SMEs and other private sector companies affected by the repercussions of the COVID-19 pandemic.

In addition, TESS includes a liquidity relief tool of AED 50 billion offered by the CBUAE through banks to eligible customers who wish to apply for a deferment.

• The CBUAE has mandated banks to accelerate the account opening time to a maximum of two days for SMEs, unless banks identify the customer as high risk from an anti-money laundering perspective.

• Banks shall not be allowed to require their SME customers to have a minimum account balance amounting to over AED 10,000. This measure is aimed at providing banks’ customers with economic relief and to facilitate the continuation of business operations in the UAE.

• Measures taken by CBUAE include the decrease of the minimum required down payment, to increase the affordability of real estate.

 

D. Service fee reduction by the Ministry of Economy

 

According to Cabinet Resolution No. 20 of 2020, on 21 April 2020 the Ministry of Economy published on its website a list of services whose fees have been reduced by 17 percent to 98 percent.

 

Click here for the updated list which is available in full on the ministry’s website.

 

III. Operations of the Courts

 

A. Dubai Courts

 

The Dubai Courts released Resolution No. 33 of 2020 concerning Remote Litigation Procedures and Continuity of Court Services (Resolution) which came into effect on 19 April 2020. Lawyers or customers wishing to benefit from court services shall use electronic systems of Dubai Courts Department to log into the smart application system. Natural persons would register in the “Al Salifa” system with a verified user account.

 

The following is an overview of the procedures outlined for various legal matters under the Resolution.

 

Matters	Procedure
Filing lawsuits, requests and amicable settlements	All lawsuit applications or amicable settlements must be filed remotely through outsourcing offices or law firms or the courts e-system.
Family guidance and divorce certification	Family guidance cases and divorce certification are filed and established remotely. Family counsel should send a WhatsApp message to the parties including the date and time of the session, the document required to be prepared by each party, and the action according to the legal proceedings. On the session day, the family counsellor makes a conference call, using the office telephone or mobile phone, with the plaintiff, the defendant and the interpreter (if applicable).
Marriage contracts, certificates and attestations	Marriages contracts shall be processed by legal marriage officers who may use remote communication technology to process these contracts with parties, whether in their presence or online. Legal certifications and attestations, applications should be filed and fees paid remotely. The attestation officer communicates with the parties and witnesses to check identities and verify the completion of all required documentation and issues the attestation which is then sent to the applicant via email.
Summons and details of the parties	All judicial summons, whether at the time of filing cases or notifications of judgements or executive deeds are served by SMS, email or other electronic means.
Remote case management	The case department must follow up on the preparation of all cases remotely through video or audio communication technology. Video or audio communication technology includes remote attendance, exchange of documents and issuance of necessary decisions. Attendances and proceedings shall be recorded in the transcript of hearing.
Remote case consideration	Remote communication technology will be used in all hearings of first instance, appeal and cassation courts, exchange of documents, hearing witnesses, deliberation, and issuance of decisions and rulings. Hearing attendance and procedures will be recorded in transcripts of the hearing. Case files must be adjourned where a litigant fails to remotely attend hearings for any reason. The same applies to cases referred to Experts. In order to preserve the rights of litigants, no cases will be dismissed even if the litigant fails to electronically attend the hearings.
Remote expertise	Expert appointment orders or decisions will be electronically sent from the competent court to advocates, experts and the Interpreters Affairs Department, and Expert fees deposited remotely through the electronic payment poral available on the Dubai Courts website. Advocates, experts and the Interpreters Affairs Department will delegate an Expert using the electronic system. The Expert then accepts the assignment through the electronic system and reviews the case file electronically. If the meetings are required, they will be held remotely by sending a link to all parties for remote attendance and specifying the time of the meeting. The Expert may submit requests to the competent court and file its report through the electronic system. The Expert then submits a request for disbursement of the Expert fees through the electronic system.
Execution and enforcement of judgements	All applications, lawsuits and execution cases must be filed remotely through law firms, via the electronic case management system (Al Salifa) or by using the smart login system (smart applications) if filed by the litigants themselves. Cases and applications for execution will be considered remotely. Persons detained in police stations and penitentiary facilities will be interrogated via video calls.  Applications for paying judgement amounts in instalments and allowing “wanted persons” times and applications for attachments in execution files or cancellation of attachments will also be entertained remotely together with travel ban or ban lifting decisions through the direct link to the CHQ of Dubai Police. Execution amounts will be deposited remotely through the (Idhafa) online portal for e-disbursement service into the bank account of the judgement creditor. Parenting times and visitation orders will also be enforced only (through) online visitation using video communication programs of courts or competent entities.
Criminal cases	All criminal cases and detentions will be entertained remotely and extended using remote communication technology. The defendant’s lawyer may appear with the client during the trial via remote communication technology. If the defendant is a foreigner and is not fluent in Arabic, the court will seek assistance from an interpreter via the remote interpretation room. Courts will also coordinate with Public Prosecution and detention places in respect of remote consideration of criminal cases and extension of detention.

 

B. Abu Dhabi Court of First Instance

 

Further to our inBrief dated 7 April 2020 where we reported on Circular No. 7 of 2020 with regard to continuity of the Abu Dhabi Courts judicial process during the COVID-19 period, the Abu Dhabi Judicial Department announced on 22 April 2020 that the Abu Dhabi Court of First Instance had reinforced its remote litigation system through audio-visual technology, to include all civil, personal status, rental, urgent lawsuits, and inheritance circuits.

 

C. DIFC Courts

 

The DIFC Courts issued a notice on 23 April 2020 stating that the Registry’s physical return to the office will not be on 26 April 2020 as initially planned. It reported that over the past five weeks it has largely been business as usual with approximately 90 percent of hearings being conducted over telephone conference, or where possible, over video conference. The remaining 10 percent of hearings which have had to be postponed due to technicalities such as the swearing in of witnesses, will be listed in the first week after the Registry resumes work from the DIFC Courts’ offices.

 

The following e-mail addresses and contact details for various queries have been provided in the notice. Urgent queries and applications should first be addressed by contacting the Registry switchboard number on +971 4 427 3333 between 8:00 a.m. and 4:00 p.m., Sunday to Thursday.

 

 

Query	E-Mail / Contact
Small Claims Tribunal enquiries	sct@difccourts.ae
Case related enquiries	registry@difccourts.ae
General enquiries	enquiries@difccourts.ae
Practitioner registration enquiries	registration@difccourts.ae
Probate related enquiries	probate@difccourts.ae
Videoconferencing, Case Management System (eRegistry) and e-bundling enquiries	ITHelpdesk@difccourts.ae
Even numbered Small Claims Tribunal (SCT) cases	Ms. Hayley Norton SCT Case Progression Officer Mob: +971 56 656 5823
Odd numbered Small Claims Tribunal (SCT) cases and odd numbered ENF cases	Ms. Mooza Al Ali SCT Case Progression Officer Mob: +971 56 5344 531
Odd numbered CFI, ARB, TCD and Court of Appeal (CA) cases	Ms. Maitha Al Shehhi Case Progression Officer Mob: + 971 54 583 1223
Even numbered CFI, ARB, TCD, Court of Appeal (CA) cases and ENF cases	Ms. Alia Al Obeidli Case Progression Officer Mob: +971 56 500 3184
All probate (PRB) cases	Ms. Maitha Al Shehhi Case Progression Officer Mob: + 971 54 583 1223
Registrar on Duty (for urgent applications and emergency queries)	Ms. Nour Hineidi Deputy Registrar Mob: +971 56 398 9583 E-mail: nour.hineidi@difccourts.ae (With a copy to the Registry:  registry@difccourts.ae).

 

IV. Logistics and Technology

 

A. TraceCovid

 

Abu Dhabi Department of Health has recently launched an innovative mobile app called TraceCovid. The app can be downloaded and installed by anyone in the UAE using a Bluetooth-enabled smartphone operating on Android or iOS. The app will identify people who have been in close contact with those infected with the virus. The health authorities will be better placed better to quickly start the contact tracing consequently reducing the spread of the COVID-19 virus.

 

To operate, the app requires only two steps – installation and keeping the Bluetooth of the phone turned on constantly. The app relies on Bluetooth signals to detect and identify another device with the same installed app.

 

When two or more app users (with the app installed and running on the mobile phone) come in close proximity/contact, the app will exchange a unique code called the Secure Tracing Identifier (STI). This happens automatically without requiring any action from the user. STIs get stored on respective phones automatically and locally (i.e., not on the servers). When one app user gets infected with the COVID-19 virus the user must, as a normal process, contact a medical centre who will in turn inform the health authorities about the infected user. The health authorities will contact the infected user to request access and upload the user’s “TraceCovid data” i.e., list of STIs. The health authority will request the user’s consent before doing so. The contact tracers from the health authorities will then have the STIs of all the users who were in contact or close proximity with the COVID-19 patient.

 

The shared list of STIs will give health authorities a good starting point to start tracing, identifying, contacting and giving medical guidance to all those people who were in close proximity to the COVID-19 patient.

 

The app works irrespective of users knowing each other. This makes the app versatile and apt for safe community contact tracing to reduce the spread of COVID-19.

 

 

B. DP World’s online logistics tools

 

DP World has launched cutting-edge online logistics tools and services, covering sea, land and air shipping around the world. The connected ecosystem of platforms will enable freight forwarders and any business, to book shipments of cargo from and to anywhere in the world, by any combination of sea, land and air. DP World has accelerated the already planned roll-out of the platforms to help companies meet the challenge of the COVID-19 crisis and keep trade flowing including vital food and medical supplies.

 

V. Visa-Related Matters

 

Extension of DIFC residency visa validity

 

In line with the recent announcement made by the Federal Authority for Identity and Citizenship concerning the extension of residency visa validity until 31 December 2020, the DIFC Authority announced the following measures and guidelines with respect to DIFC residency visas:

 

• All employees and their dependents (inside or outside the UAE) as well as all individuals inside the UAE with visas expiring after 1 March 2020 will have their entry permit validity extended until 31 December 2020.

• Employers wishing to submit applications for visa renewal can still apply on the DIFC Portal. The visa will be valid from the renewal date up to three years and medical fitness test will not be required. Individuals with expired visas who are eligible for the extension and need to exit the UAE are required to renew the visa before exiting the country.

• Employees with cancelled visas that could not exit the UAE due to the current travel restrictions will be able to have their overstay fines waived at the airport at the time of exit.

• Employees with cancelled visas or visit visa that are in the process of obtaining a new visa with a new employer must complete the change of status within the permitted grace period to avoid fines. Fines will still be applicable for this category.

• Entity establishment cards must be renewed on time. Late fines will still be applicable for delay in renewal of establishment cards. Entities must ensure that the DIFC license is renewed to be able to apply for establishment card renewal. The penalty for each month of delay is AED 100.

• The residency visa of individuals (with valid visa) who completed six months outside the UAE after 1 March 2020 will not be blocked until 31 December 2020.

• Individuals with cancelled visas who are applying for a new visa while they are inside the UAE (given that no overstay fines are issued to them) will be allowed to complete the new visa process without the medical fitness test. However, the visa will be issued for one year only. Visas issued for three years will still require a medical fitness test to be completed.

• The Federal Authority for Identity and Citizenship have started issuing electronic visa stamping and the same will be available under the service request documents list upon completing the visa process.

 

VI. VAT-Related Matters

 

Deadline to submit VAT returns extended to 28 May 2020

 

On 21 April 2020 the Federal Tax Authority issued a directive, on an exceptional basis, for an alternative deadline to file VAT tax returns and pay due taxes on 28 May 2020, for tax periods that ended on 31 March 2020.

 

This exceptional directive pertains only to VAT returns for the tax periods that ended on 31 March 2020, for both monthly and quarterly tax periods, and does not affect any other tax periods where the deadline for filing tax returns and settling of payable taxes does not fall in April 2020. ■