Book an appointment with us, or search the directory to find the right lawyer for you directly through the app.Find out more
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.Read the full edition
UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued a new Decree (Decree Law No. 19 of 2018) (“Decree”), which seeks to boost Foreign Direct Investment (“FDI”) in the UAE and further solidify the country’s position as a ‘Global Business Hub’.
Article 2 of the Decree is aimed at strengthening the position of the country as a major destination for foreign direct investment at both regional and international level and attract new FDI into the UAE.
The Decree is aimed to facilitate the establishment of companies with up to 100% foreign capital in certain strategic sectors and such companies will, pursuant to the Decree, be treated as national companies, to the extent the applicable laws and treaties permit.
The Decree introduced a Foreign Direct Investment Committee (“Committee”) which will be formed pursuant to a resolution by the UAE Cabinet (“Cabinet”) and chaired by the Minister of Economy (“Minister”). The Committee will be responsible for referring recommendations to the Cabinet in connection with sectors, activities and benefits to be granted to the FDI Projects.
Territorial Sway of the Decree
While the provisions of the Decree will apply to FDI Projects set up and licensed in the mainland UAE, the benefits of this Decree will not be granted to projects set up in the financial and free zones in the UAE.
The Decree provides that a “positive list” which includes permitted sectors and activities for FDI Projects will be issued by the Cabinet according to the proposal by the Minister and recommendation by the Committee.
The Decree does however, provide a negative list which includes banking activities, financing, payment systems and dealing in cash; insurance services; land and air transport services; commercial agent services and medical retail services such as private pharmacies etc.
The Decree aims to achieve a balanced and sustainable development in the UAE through increasing the flow of foreign direct investments, in priority sectors.
Dedicated FDI Unit
Pursuant to Article 5 of the Decree, a dedicated FDI unit (“Unit”) is to be established within the Ministry of Economy, which will amongst other roles clearly set out in the Decree, focus on proposing the policies and procedures relating to FDI and how best to implement new projects.
The Unit will also provide a database containing comprehensive data on current and upcoming investment projects in the UAE.
By providing an attractive platform for foreign investors, it is expected that a boost in economy will lead to an increase in job opportunities in the UAE.
Our team is well placed to advise you on:
For further information on how we can help; contact Samer Qudah, Partner, Head of Corporate Structuring.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.