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Banking

United Arab Emirates

While there is much uncertainty as to how the new Anti-money Laundering Law will be enforced, it introduces a basic framework for the various enforcement institutions. How these institutions will exercise their authority, and whether they will be able to coordinate with each other to tackle money laundering effectively, remains to be seen.

Company & Commercial

United Arab Emirates

Overview
Including: Corporate Personality and Shareholders’ Liability; Required Number of Shareholders; UAE Ownership Requirement; Minimum Share Capital; No Bearer Shares or Different Share Classes; Division of Profits and Losses; Management and Board; Statutory Reserve; Pre-emption Rights; Incorporation Documents; Foreign Documents Legalization; and LLC Details on Company Documentation.

There are potentially far-reaching and adverse implications for a foreign company that terminates an agency/distribution agreement, not least in terms of paying compensation to the agent/distributor. In the event of a dispute over termination, the foreign company usually has a heavy burden of proof to discharge.

The chief attraction of establishing a business within one of the United Arab Emirate's free zones is the waiver of the requirement for majority local ownership. There are also financial incentives, since most free zones provide various exemptions.

This update discusses the attraction of free zones for investors and details plans for the establishment of a new free zone which proposes a financial services centre to rival Hong Kong and Singapore.

A controversial ruling by the Court of Cassation states that managers of limited liability companies may be held personally liable if they sign a company cheque that is later dishonoured.

E-commerce

United Arab Emirates

Overview
Including: Background; Legislative Developments; Comment.

In line with the decision of the Internet Corporation for Assigned Names and Numbers at the end of 2009 to allow domain names to be registered in Arabic, Chinese and other non-Latin scripts (internationalized domain names (IDNs)), 16 applications have been filed for country-level IDNs. Accordingly, the launch of Arabic-language IDNs, including '.امارات' ('.emarat'), appears imminent.

The e-commerce revolution presents many challenges to the United Arab Emirates since no specific e-commerce legislation yet exists. Legislation is required for issues such as contract acceptance and data protection.

Dubai Internet City is an ambitious project to create the world's first free trade zone for e-business. The key factors are outlined in this update, along with the prospects for success.

When trading online, the same business issues and risks that apply to managing an offline business should be borne in mind. Consideration should be given to issues including location, sub-contracts, trading terms and conditions, taxation and insurance.

Including: Economic Context; E-Government; E-Business; Principles of Contracting; International Perspective; Online Crime; Law Enforcement; and Data Interception

The recent conviction of an internet hacker who accessed the UAE's telecommunications provider's internet service, has emphasized the need to create legislation to deal with problems arising from the use and abuse of the World Wide Web.

Insurance & Reinsurance

United Arab Emirates

According to a recent Federal Supreme Court judgment, insurers would do well to ensure that their adjustment of a claim requires the insured to produce suitable evidence to support the amounts claimed and losses sustained, in order to enhance the prospects of a successful recovery from a third party.

When a non-delivery of cargo claim arises, insurers must be quick to trace the cargo and obtain evidence admissible in the courts. Two recent judgments provide an interesting insight into marine insurance litigation in the United Arab Emirates.

A recent ministerial decision makes changes to UAE laws in relation to the regulation of insurance brokers and their activities, with particular significance for the life insurance industry.

According to a recent ministerial decision, any insurance broker who deals in (or offers) the products of any insurance company that is not registered with the ministry risks having his or her registration cancelled.

Insurers and brokers seeking to write or place business in the United Arab Emirates should ensure that they comply with new legislative changes. While the changes do not go as far as to attribute liability to brokers for unpaid premiums, they do impose various obligations on both insurers and brokers.

Intellectual Property

International

The recent introduction of top-level internationalised domain names will affect the way in which brand owners market their products, as the Internet becomes more accessible to those that are literate only in Arabic (or in another language which does not use Latin characters). The impact on brand owners that wish to communicate with a global audience will be significant.

Qatar

The news that Qatar has acceded to the Patent Cooperation Treaty (PCT) appears to give rise to an unusual situation of progress without movement. Rights owners with an interest in Qatar may look forward to making use of the international system offered by the PCT in order to obtain protection more effectively than is available under the current system. However, it appears that there will be no immediate change in practice.

Saudi Arabia

The first fully non-Latin script domain names were recently launched in Saudi Arabia, the United Arab Emirates and Egypt. These 'internationalized' domain names will all be in the Arabic language. The first country to publish registration requirements was Saudi Arabia, under which priority registrations will be available to non-Saudi businesses only if they already hold a corresponding Arabic-language trademark registration.

United Arab Emirates

There are a significant number of English speakers within the Middle East, particularly in countries such as the United Arab Emirates where there are large expatriate communities. However, the first language of the region is Arabic. Foreign brand owners looking to register a mark in such countries should consider the importance of registering Arabic versions of their trademarks in order to achieve sufficient protection.

The 10th edition of the Nice Classification of goods and services recently came into force, providing a significant advantage for trademark owners filing trademark applications in countries that have adopted the classification. However, in the Middle East, where most countries are not signatories to the Nice Agreement, the position has become more complicated than it was previously.

The UAE Trademarks Office (TMO) has recently appointed a new official to decide opposition cases. This is welcome news. However, those unfamiliar with opposition proceedings in the United Arab Emirates may find the absence of a regulated structure difficult to negotiate. Many procedures originate from the customary practice of the TMO, rather than from a clearly defined legislative framework.

As internationalized (non-Latin script) domain names (IDNs) are being adopted across the Arabic-speaking world, many brand owners are having to review their Arabic-language trademark protection. While there may be a well-trodden path to follow in seeking to recover English and other Latin-script domain names from cybersquatters, the position is potentially much less straightforward when it comes to Arabic-language IDNs.

The United Arab Emirates has reintroduced a two-stage process for trademark applicants to pay publication and registration fees. However, a strict publication deadline has also been introduced. If publication does not now take place within 30 days of payment of publication fees, the application will lapse. This deadline is not extendable and there is no provision for applications to be restored if the deadline is missed in error.

The UAE government has announced proposals to introduce major amendments to the IP regime. The proposed changes will have an impact across three areas: confidential information, patent and design protection and integrated circuits. The introduction of the proposed amendments is positive news for rights owners, but much will depend on the implementing regulations.

Shipping & Transport

United Arab Emirates

When a non-delivery of cargo claim arises, insurers must be quick to trace the cargo and obtain evidence admissible in the UAE courts. Two recent judgments provide an interesting insight into marine insurance litigation in the United Arab Emirates.

Proposed measures to prevent further oil spills in the United Arab Emirate's territorial waters include a total ban on ships that fly the flags of certain countries.

A ministerial decision passed in June modifies the UAE licensing conditions for foreign vessels. This update details the amendment.