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Rise of Generative AI
Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.
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A complete spectrum of legal services across jurisdictions in the Middle East & North Africa.
Abu Dhabi Executive Committee Circular No. 1 of 2019 – Concerning the Payment of Entitlements of Contractors and Suppliers
The Abu Dhabi Executive Committee has issued an Executive Council Circular which signifies an important new step in regulating the payment process under Government contracts. Under Circular No. (1) of 2019, dated 26 March (“Circular”), Government Bodies and companies are now required to observe the following requirements:
- Payment of all entitlements to contractors and suppliers within 30 days as of the date of receipt of the relevant invoices.
- The inclusion of a clause in their contracts with contractors and suppliers that stipulates the obligation of contractors and suppliers to pay the dues of subcontractors and sub-suppliers within 30 days as of the date of receiving their entitlements from the Government Bodies and companies.
- Amending all valid contracts with contractors and suppliers as stipulated above.
- In the event of a disagreement between the parties on part of the amounts due, the undisputed amount shall be paid. This shall not be regarded as a waiver of the right of any of the parties until an agreement is made on the remaining amount according to the contract.
The above requirements have been introduced with retrospective effect and therefore must be reflected in all contracts previously entered into with contractors and suppliers prior to the date of issue of the Circular, in addition to all new contracts.
This recent announcement comes at a time when contractors and suppliers in the UAE are increasingly feeling the strain of reduced liquidity and cash flow, in part due to reduced economic growth as a result of lower oil prices.
Our Construction & Infrastructure team regularly advise on all elements of the construction procurement process. If you have any questions or would like further information, please don’t hesitate to contact our team:
Euan Lloyd
Senior Counsel, Construction & Infrastructure
e.lloyd@tamimi.com
Leith Al-Ali
Associate, Construction & Infrastructure
l.alali@tamimi.com
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