• July 15, 2019

    Eligible Sectors for 100% Foreign Ownership in the UAE Now Defined

    The United Arab Emirates Cabinet passed a landmark decision last year to allow 100% foreign ownership of companies onshore and have recently announced the industry sectors that are eligible. This marks a significant change from the prior law where foreigners must seek a local partner to set up business in the UAE, onshore and where the alternative for 100% foreign ownership in free zones. International companies seeking to establish an onshore presence would have to team up with a UAE national who is required to own 51% shares of the company. With the Foreign Direct Investment Law (Federal Law No.19 of 2018) (the FDI Law) that came into force on 23 September 2018, 100% foreign ownership of UAE onshore companies will now be allowed in eligible sectors. This move is expected to boost the UAE economy, attract foreign direct investment and reaffirm UAE’s position as an international hub for commerce and an optimal environment for doing business. The specific sectors in which 100% foreign ownership shall be allowed include 122 economic activities across 13 sectors such as: Renewable energy Agriculture Information and communications Food services Hospitality Logistics Manufacturing Space Transport Professional, scientific and technical activities Educational activities Healthcare Art and entertainment Construction Through the inclusion of these sectors in the 100% foreign ownership eligibility list, the UAE aims to attract foreign investment into the production of solar panels, green technology, hybrid power plants and power transformers. The UAE also aims to stimulate foreign ownership into transportation and storage which is expected to increase economic activity in supply chain, logistics, cold storage and e-commerce transport. 100% foreign ownership also extends to specific professional, scientific and technical activities across the identified sectors. For example, investors can now own laboratories for research and development in biotechnology. The UAE Cabinet has indicated that the local governments at an emirate level has the discretion to decide on the percentage of foreign ownership for each sector / activity. A negative list has already been released along with the FDI Law’s publication in the Official Gazette last year. The sectors where 100% foreign ownership shall remain restricted include: Oil and gas Banking Utilities Road and air transport Telecoms Medical retail (including pharmacies) We at Al Suwaidi and Company are continuing to monitor any further legal developments in these areas and shall advise our clients as and when further information and details are released regarding foreign ownership and foreign direct investment into the UAE.

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  • Labour Law in Dubai
    July 6, 2019

    How to File A Labour Case in Dubai Court?

    *please make sure no Intellectual property is violated by this article. We know that most of us are so timid that we cannot have a word withour employers to claim our entitlements. This results to a void between employees and employers. In some situations, employers take away rights of the employees and the latter do not say a word. This is not right and it should not be tolerated. As a result of fear or whatever, you wish to call it, a lot of individuals do not submit labor cases in Dubai on time. The workers go on postponing the filing which eventually makes them lose the opportunity. People should recognize how important it is to take heed of Dubai law recommendations as everything can disappear at a blink an eye. Legal Time for Pursuing at the Labour Law Case The legal time frame for filing a case is just one year. If the workers wish to file a complaint against their companies, they have to do it within one year. After a year has passed, their case will not be accepted and they will inevitably be left empty-handed. If somebody is working in a company on an unlimited contract and they were not provided all their rights, it appears that it is their very own fault. This is due to the fact that before leaving the firm, employees need to check on every advantage they need to get after leaving the company or getting terminated. The staff members need to understand what was mentioned in their last settlement as well as what they are actually near completion of their work. They should confirm each and every little thing prior to leaving the firm and also signing the final document so that they may obtain every little thing they have a right on. If a staff member discovers benefits mentioned in the negotiation are not dealt with, he can report that to the employer. If the company disagrees with any one of the discussed benefits, the worker can refer to the Ministry of Human Resources and Emiratisation. Releasing or foregoing anything just because you assume you can not do something about it, is not proper. You ought to deal with it because what is yours should be yours. Employer and Employee Both Can File A Case Both employees and companies can file labour complaints if there are any employment-related issues. BUT this should be filed within one year. No insurance claims of both the workers and the companies will be paid if a year has passed since the event giving rise to the claim. Additionally locate more information: Dubai court work conflicts Work Department in UAE If the employee or a company encounters any type of work issue, they need to report it to the labour department before it is too late. The concerned work division upon filing of the report will execute all the essential actions to address the case. After submitting the case, both of the parties will be ordered to meet to address the situation amicably. Right after getting the demand, the court will convene within three […]

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  • July 4, 2019

    TRADEMARKS – A BRIEF GUIDE TO PROTECTING YOUR BUSINESS IN THE UAE RELATING TO NON-USE AND LICENCES

    General rule There is a general rule in most of countries worldwide. You must use your registered Trademark, or it will be subject to a potential cancellation by a competitor. The concept is known as ‘non-use’. In the UAE, the golden rule to be aware of is that use of a trademark is not required for registration or renewal. However, a trademark is vulnerable to revocation by any interested party if there has been no genuine/effective/continuous use of the mark (except possibly by a bona fide licensee) for a period of 5 consecutive years from the registration date. As sole exception, this rule is not applicable on the World-renowned trademarks as per article 4 of trademarks law, in other words, any application to cancel a world-renowned trademark based on the non-use for continuous 5 years, will be rejected. UAE Federal Law The UAE Federal Law No. (37) of 1992 is an important reference point. The mentioned law is applicable for the seven Emirates of UAE Abu-Dhabi, Dubai, Sharjah, Ras Al-Khaimah, Ajman, Fujairah and Umm Al-Quwain. Article 22 is the appropriate provision dealing with non-use. It says the following: “At request of a concerned party, the competent civil court may cancel a registered trademark, if it is proven that such trademark has not been used for five successive years,  unless the trademark owner proves that non-use of such trademark was for reasons beyond his control including, but not limited to, import restrictions and other government conditions imposed on the commodities and services related to such trademark. For the purposes of this Article, use of the trademark by a person authorized its owner to do so shall be deemed a use of such trademark”Initially the applicant must demonstrate that the trademark owner has not used the mark as required by Article 22. If the applicant can put forward a robust case, then the burden of proof is on the owner of the mark to prove that there has been continuous use contrary to the applicant claim to deflect the claim for cancellation. Furthermore, as Article 22 implies, if the trademark owner can demonstrate a reason for non-use relating to import restrictions or imposed government conditions, which are beyond his control, cancellation can be avoided. Article 17 says that once a trademark is used continuously within 5 years from the date of registration, its ownership cannot be disputed. There is an exception where the challenger can show the mark was registered illegitimately. Article 6bis of The Paris Convention for the Protection of Industrial Property states that “No time limit shall be fixed for requesting the cancellation or the prohibition of the use of marks registered or used in a bad faith”. Licensed use Turning to the position where a trademark is used by a licensed business operator, in a distribution agreement, for example. In the absence of use by a registered holder during the initial 5 years, there is some ambiguity concerning use by a licensee where the license is not a matter of record. If this is the case, it reduces the likelihood that use by a licensee will constitute genuine use […]

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  • law firms in uae best law firms in Dubai
    July 3, 2019

    The Legitimacy of Arbitration as a Means of Dispute Resolution

    Islam has legitimized the arbitration method in order to simplify the process of litigation. Islamic jurisprudence has given the subject of arbitration utmost attention and organized a well-established rules and regulations. The advantages of arbitration lie in streamlining its procedures, confidentiality of its hearings, and legal basis in particular if those in charge are recognized for their competence, skill, independence, experience, integrity and wisdom, as well as the possibility of implementing its provisions internationally. The definition of arbitration in law is equivalent to  Islamic Shari’a, which is an agreement between concerned parties for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the “arbitrators” or “arbitral tribunal”), by whose decision (the “award”) they agree to be bound. The legitimacy of arbitration is evidenced by the Holy Qur’aan and Sunnah, and it differs from Fatwa, judiciary, reconciliation and conciliation, and is a separate contract with its specificities, conditions, rules, and principles. Arbitration in Islamic jurisprudence expands in all its financial and social fields, except Hudud (boundaries), Li’aan (“Mutual cursing”– a form of divorce), and penalties. We find the evidence of  legitimacy of arbitration in the Holy Quran, Allah Almighty Says: (If ye fear a breach between them twain, appoint (two) arbiters, one from his family, and the other from hers; if they wish for peace, Allah will cause their reconciliation: For Allah hath full knowledge, and is acquainted with all things)  An-Nisa: Verse 35, and also says: (But no, by the Lord, they can have no (real) Faith, until they make thee judge in all disputes between them, and find in their souls no resistance against Thy decisions, but accept them with the fullest conviction) An-Nisa: Verse 65. In the Prophetic Sunnah, It was narrated from the Messenger of Allah, peace be upon him, that he said: “Whoever arbitrates between two consensual without fairness, the curse of Allah on him.” As for the consensus: the Companions of prophet, agreed on the permissibility and legitimacy of arbitration. The Islamic and Arab countries paid a particular attention in arbitration, they have a special chapter in the Civil and Commercial Procedures Code. Some countries such as United Arab Emirates recognized arbritration as an independent system through Federal Law No. 6 of 2018. Most of the Islamic and Arab countries joined and ratified New York Convention 1958. The International Islamic Fiqh Academy in its ninth session which was held in Abu Dhabi, United Arab Emirates (April 1995), supported arbitration as a legitimate means of dispute settlement and decided that arbitration is an agreement between the two parties to a specific dispute, to mandate a third party to arbitrate between them and settle their differences through a binding verdict that is observant of Islamic Shari’a. Arbitration, thus conceived, is permissible, whether it is amongst individuals or in the field of international conflicts. It has been clarified that Arbitration is not mandatory for the two conflicting parties nor is it for the arbitrator. Either of the parties may decline it as long as the arbitration has not started, and the arbitrator may disassociate himself from the […]

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