Fichte & Co.

The new year has brought with it changes in the legal landscape in the UAE, especially in relation to employment and governance of labour relations. This Article deals specifically with two laws that employees and employers need to ensure they are compliant with, starting this year.

The firm is committed to constantly evolving and growing by welcoming new partners and granting its continuity

On 15 September 2022 the UAE government issued a Federal Degree Law No. 13 of 2022 concerning Unemployment Insurance (“the Law”), which came into force on 29 September 2022 and applied to all workers (UAE National and Expats) in the private sector and the Federal government sector in the State.

The UAE’s unique location at the crossroads of global shipping routes and its constant drive towards innovation has enabled it to become one of the leading international maritime hubs. The maritime sector is a key pillar of the UAE national economy and has shown tremendous results in various performance indicators. The nation ranks third in the Bunker Supply Index, fifth as a top maritime hub as per the ICSD Index, and 13th in the Port Performance and Efficiency Index.

“The UAE government policy to support Emiratisation or increased participation of UAE nationals in the private sector workforce has been around for several years now,” states Dr Laura Voda.

The commercial agency framework in UAE has been a key element of commerce.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE has enacted the new Dubai International Financial Centre (DIFC) Data Protection Law, which comes into force from July 1, 2020. Our Senior Associate, Dr. M.L. VODA talks about the new regulation which includes general fines for serious breaches of the Data Protection Law, in addition to or instead of administrative fines, as well as increased maximum fine limits, that have been introduced.

The newest and most effective marketing tool for business exists nowadays in the digital world. Whereas a good and attractive website has all the prerequisites to have a strong impact on the market share and positioning of a firm, it has the drawback of exposing important and not always protected content to infringements.

Port of Fujairah is opening for crew changes. This article talks about everything you need to know about the responsibilities, the registered agents should undertake and declare.

The World Trade Organization has projected that “world trade is expected to fall by between 13% and 32% in 2020” due to the COVID-19 pandemic, as it has increased globally causing massive disruptions on the economic activity of international markets, including individuals’ lifestyles. One of the major industries shaken by this calamity is the global shipping industry, from reduction in freight rates to a decline in cargo demand. Though the industry faces uncertainty in the impending future with global supply chains being curbed, there is some optimism, that in the long run, the future brings alight opportunities. This FAQ will consider some of the difficulties confronting the future of the industry and what to expect.

Free Live Webinar To help employers and employees better understand the current developments, including some temporary measures introduced in the UAE, Fichte & Co recently hosted a free live webinar. Our Associate, DR. Laura Voda and Seniors Associate, Moaz Forawi talked about the Ministerial Resolution 279, the scope and applicability,  provided clarity towards the measures implemented as per the resolution. The webinar also focused on the rights and obligations of the employee and employer during this period and what they can do to protect themselves in order to avoid any dispute in the future. HERE.  

В это время неопределенности работодатели и сотрудники в ОАЭ сталкиваются с беспрецедентными вызовами в бизнесе. Отсутствие ясности относительно того, как долго продлятся превентивные меры, а также последствия, вызванные COVID-19, создают хаос на рынке труда. Наш юрист Adv. Anastasia Golovko объясняет, как COVID-19 повлиял на трудовые обязательства работодателя и работника в ОАЭ и DIFC. Click here.

Dubai property market often sees developers lure potential buyers with attractive and flexible payment plans. If you were purchasing a unit and the project has fallen through and been canceled, you are entitled to have your money refunded from the developer’s escrow account. In the below article, our Associate, Dr. Laura Voda talks about the necessary steps to be taken, if faced with a canceled off-plan Property Project in Dubai. Click here.

This article was published on the Lexis Middle East Law Alert magazine, brought to you by LexisNexis Middle East and ACC Middle East (June-July). You can also download the digital version of the magazine by clicking on the link at the bottom of the article.

Property developers in the UAE can bypass the courts and terminate contracts. In such an event, the developer shall notify the Dubai Land Department (DLD) of the buyer's default. Our Associate, Dr. Laura Voda talks about the procedures with timelines that are to be complied with by a developer prior to termination. In 2017, His Highness Sheikh Mohammed Bin Rashid Al Maktoum issued Law No. 19 of 2017, amending Article 11 of Law No. 13 of 2008 on the Interim Real Estate Register in the Emirate of Dubai. The provisions of Law 19 of 2017 are a matter of public policy, therefore any contractual agreement that developers have with their buyers may not depart from the procedures prescribed in the Law. Whereas the Law is not applicable for sales of land, its main aim resides in granting the Dubai Land Department (DLD), and consequently the developer, the right to terminate an off plan sale without the need of obtaining a court order or arbitral award. Prior to being able to unilaterally terminate the off-plan sale for a defaulting investor (buyer), the developer would need to comply with several procedures at DLD: (i) notify the default to DED; (ii) based on the notification, DED to serve an official notice to the defaulting buyer and (iii) issuance of DLD Report of deregistration in case of non-compliance with the buyer. Notably, the DED notice to the defaulting buyer would grant the latter a 30 days' deadline to rectify the default. Should there be grounds, the DLD may as well initiate an amicable settlement between the developer and the buyer. Only at the expiry of this period and in case the defaulting buyer fails to rectify the default, respectively amicable settle the situation with the developer, then the DLD will proceed and issue its report, comprising the below main points: a.    The developer is compliant with their obligations under Law 19 0f 2017; and b.     The current completion status of the project. The importance of this report is that, after its issuance, the DLD will deregister the Sales and Purchase Agreement (SPA) between the developer and the buyer, at the developer's request, without the need of a prior court order or arbitral award to be issued. Consequently, the developer may at anytime after the issuance of the DLD report terminate unilaterally the Sales and Purchase Agreement, without the need of court order or arbitral award, according to the following procedure: A)    Completion status exceeding 80%: the developer may affirm the SPA and request the buyer to execute it. Else, the developer may ask DLD to have the property sold in public auction, the proceeds of such sale being offset with the unpaid balance of the purchase price, in favor of the developer or, in the most severe case, the developer may terminate the SPA unilaterally and retain 40% of the purchase price. Amounts paid by the buyer in excess of the 40% threshold would need to be returned by the developer; B)   Completion status between 60%-80%: the developer has the right to retain 40% of the purchase price and return the exceeding amounts to the buyer; C)    Completion status below 60%: the developer has the right to retain 25% of the purchase price and return the exceeding amounts to the buyer; In all the above cases, the return of the excess amounts to the buyer shall be made within one year from the termination or within 60 days of the successful resale of the property, whichever is earlier. D)    Construction not commenced: if the constructions have not commenced for reasons not imputable to the developer, the latter may retain up to 30% of the amounts paid by the buyer, the rest being again returnable to the buyer within 60 days of termination of the SPA. Conversely, this should not be understood as applicable to canceled real estate projects. The cancellation of real estate projects is firstly done by the Real Estate Regulatory Authority (RERA), for reasons related to the developer and the developer's performance or lack of action despite having obtained the necessary licenses in order to start the construction. As such, the cancellation of a real estate project pertains to and proves the developer's default in implementing a SPA, not the buyer's. In a case of cancellation, the principle is that buyers retain the right of full reimbursement of the amounts paid, from the ESCROW account of the project. Under Law 19 0f 2017, a buyer always retains the right to refer to courts or arbitration bodies in case he deems the developer's action to terminate the SPA as abusive or unjustified. To grant larger protection to buyers in off-plan projects, the Law is applicable with retroactive effect, by way of exception from the Constitutional principle of non-retroactivity of laws. In conclusion, we deem Law 19 of 2017 a progressive tool for ensuring the security of the off-plan sale and purchase market in the Emirate. The transactions benefit of more predictability, transparency and the Law allows developers to secure the cash flow of their projects without needing to recourse to traditional litigation. As such, this development is expected to bring more certainty for the completion deadlines of real estate projects, for the hand over dates and amount to less waiting time for investors and buyers acting compliantly with the SPAs, in good faith.

During this critical time of COVID-19, employers are now scrambling to figure out how to keep the workflow going. Many organizations are considering layoffs and pay-cuts to ensure they make it through the COVID-19 economic crisis. At this point, the employees fear to lose their jobs and feel helpless.

COVID-19 outbreak and the precautionary measures have affected the UAE private sector massively. The Ministry of Human Resources and Emiratisation recently issued a new Ministerial Resolution clarifying the actions that would protect both the businesses and their employees. In the below article our Associate, Dr. Laura Voda, talks about the new Resolution No. 279 of 2020.

The “Early Leave” initiative that has been launched recently by the Ministry of Human Resources and Emiratisation, in cooperation with the Emirates Identity Authority - EIDA and Citizenship, the Ministry of Foreign Affairs and International Cooperation, the General Civil Aviation Authority, and the National Emergency Crisis and Disasters Management Authority.

The COVID-19 outbreak has had a considerable impact on business globally, particularly the Maritime sector.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai has announced the launch of a new district combining the key commercial and financial hubs in Dubai and is dedicated to the development of the future economy under the name of 'Dubai Future District'.

This Decree-Law on the Insolvency of Natural Persons which has been issued on 29 August 2019 and supposed to come into effect in the beginning of 2020, aims at enhancing the competitiveness of the UAE by ensuring the ease of doing business, creating favourable conditions for individuals facing financial difficulties and protecting those who are unable to pay their debts because of their bankruptcy.

To start with, the UAE labour law defines the employment contract as "any agreement for a definite or indefinite term, concluded between an employer and an employee, whereby the latter undertakes to work in the employer's service and under his/her management and control, in return of a certain wage that the employer undertakes to pay." A worker is defined as "any male or female working, for a wage of any kind, in the service or under the management or control of an employer, albeit out of his/her sight. This term applies also to labourers and employees who are in an employer's service and are governed by the provisions of this Law." Also, employer is defined as "any natural or legal person employing one or more workers in return of any kind of wage." It is worth noting that the UAE labour law did not require that the employment contract is in writing. The employment contract and its terms and conditions can be verified by all legal methods of evidence. However, in the event that the employment contract is not in writing, such contract is for an indefinite term, noting that the mutual rights and obligations under the indefinite term contract are different from those under the fixed-term contract.

Dubai Multi Commodities Centre (DMCC) recently announced new DMCCA Company Regulations 2020, which came into effect from 2 January 2020 to further enhance the ease of registration and operation of businesses.

Background and introduction Just recently, His Highness Sheikh Mohammed bin Rashid Al Maktoum Vice President and Prime Minister of the UAE issued Law No. (6) of 2019 pertaining to the Joint Ownership of Properties (Joint Ownership Law) in Dubai. This newly enacted law repeals Law No. (27) of 2007 concerning Jointly Owned Property in the Emirate of Dubai.

Introduction On 11 September 2019, the UAE issued Ministerial Decision No. 215 of 2019 on the Directives for the implementation of the Economic Substance Regulations (ESR). The ESR was earlier published in April 2019 as the Cabinet of Ministers Resolution No. 31 of 2019.

Published since 1936, the International Chamber of Commerce (ICC) has published a set of three-letter trading terms for the use in sale and purchase contracts. These ‘Incoterms' deal withthe obligations of the buyer and seller and consists of 11 three- letter trading terms grouped as follows:

Funding options for start-ups in the UAE are on the rise. Traditionally, most start-ups in the UAE have tended to be bootstrapped or financed by conventional lenders such as banks and financial institutions. However, over the last few years, business incubators and accelerators have flourished in the UAE, creating a conducive and cost-effective environment for entrepreneurship in the UAE. This has led to a gradual upsurge in activities in the angel investment, crowdfunding, private equity, and venture capital space. Notably, the technology space has seen a boost as the UAE government has announced various initiatives for entrepreneurs and has been actively promoting the fintech space.

The DIFC Wills and Probate Registry (WPR) has been established as an official mechanism for non-Muslims to register their wills and have it enforced through the DIFC Courts. Previously there was a lot of uncertainty with regards to the registration of wills of non-Muslims since Shari’a principles govern inheritance throughout the UAE. If an expatriate living in the UAE dies without having a will in place, Shari’a principles will most likely apply, and family members may be forced into an heirship regime without fully understanding the consequences. The best way to ensure certainty over your assets upon death is to register a will with the DIFC WPR. Although the Registry has its own complex rules and laws that would be applicable, it provides a relative freedom of disposition of assets upon death. The DIFC WPR has gone through a number of changes since its establishment in 2015 and has consistently strived to better protect testators and their assets. The DIFC WPR’s jurisdiction has now officially expanded to include assets outside of Dubai.

Tanker attacks have a long history indicating that it could be a powerful weapon in international conflict, which can significantly destabilize an economy. During the Iraq-Iran War in the 1980s, oil terminals and tankers were under severe attacks, which directly affected the economies of both nations, in addition to the safety of maritime traffic.

Doctors in the UAE face considerable legal risk when treating patients. Thus, it’s important for casualties as well as medical practitioners to know their rights and get their cases evaluated by legal experts.

DIFC Employment Law no. 2 of 2019 (“New Law”) has recently been enacted which repeals and replaces the DIFC Law no. 4/2005 as amended by DIFC Law no. 3 of 2012 (“Previous Law”). There has been an ongoing debate about the implemented changes introduced by the New Law. Some changes have been enacted to protect the employers, such as the limitation of liability period of 6 months and the provisions which allow employees to waive their rights under the New Law subject to agreements put in writing. Other changes have been enacted to protect the employees, such as provisions for non-discrimination and non-victimization, the penalties imposed by the DIFC for employer’s non-compliance, and forbidding the employer to retain the employee’s original passport (although the latter was always the legal position in the UAE).

A three-year stand-off involving 40 sailors and eight vessels off the UAE belonging to the same company has ended. It followed a long legal battle that saw the Federal Transport Authority (FTA) take action against Dubai-based Elite Way Marine Services. Effective June 6, 2018, the FTA banned the company from all commercial activities and also from operating in the UAE ports and waters.

The deadline to comply with the Ultimate Beneficial Ownership Regulations was 12 February 2019. However, the DIFC is offering a 30-day grace period. Our Senior Associate, Priyasha Corrie summarised the key points you should take note of, if complying with the new UBO regulations. At Fichte & Co. we assist in filing UBO details on the DIFC client portal, and also with preparing UBO register.

Our Associate, Keshav Raychaudhuri discusses the concept of anti-suit injunctions in support of arbitration proceedings and how these can be used as a tool for specific performance of an arbitration agreement.

In light of the upcoming ratification of the Singapore Convention on Mediation by several countries, our Associates provides comments on the Convention with a UAE perspective.

Clearly outlining the duties and liabilities of managers and directors of commercial companies is essential. Looking at the legal aspect of this, the Commercial Company Law ("CCL") is the most referenced legislation when dealing with directors’ duties and day to day management of their companies.

JAFZA Offshore jurisdiction has seen a lot of evolution in the last few years and has become the most desirable jurisdiction for owning or holding Dubai freehold properties in the UAE. The free zone authority has recently announced Offshore Companies Regulations which completely replaces the Jebel Ali Free Zone Offshore Companies Regulations 2003. In the below article our Company Setup Specialist, Neelesh Pillai talks about this new more investor-friendly and flexible Offshore Company policies and regulations.

Any sale or transfer of shares in a United Arab Emirates (UAE) limited liability company (LLC) raises certain documentary and procedural requirements in the Emirate in which the company is registered. In the below article, our Senior Associate, Priyasha Corrie talks about 5 practical steps to transfer shares in the LLC in Dubai.

The new DIFC Companies Law came into effect on 12 November and brings with it a number of important changes. In the below article, our Senior Associate, Priyasha Corrie talks about the key action points, changes and what it means for your business.

After brainstorming and investing heaps of money and time on your new business set-up, how sure are you that your company's identity is secured, no other company would use the goodwill of your business or your credibility is safe enough?

The UAE is steadily climbing the ranks of the leading nations in the global maritime industry, and this requires a process of constant development and reform. With more than 17 years of experience in the UAE maritime sector, our Managing Partner, Jasamin Fichte, who deals with the UAE Litigation on a daily basis, stated - 'Looking at the current UAE court system it is apparent that it is not in sync with international standards and not easily accessible'.

It will hugely enhance the current labour market, say lawyers

Geographically, as being in the centre of the World, UAE is arguably an “ideal” Maritime location. Talking about the new hashtag #Maritime law, our Managing Partner, Jasamin Fichte focuses on some of the key issues that need to be immediately addressed should UAE desire to remain in the league of Maritime nations with a thriving Maritime industry. This article was first published on Marasi News magazine.

Shipping has historically been a male-dominated industry and that tradition runs long and deep. There are just a handful of women who have taken the initiative to be a part of this rat race. In an exclusive interview with IHS Maritime & Trade - Fairplay, our Managing Partner, Jasamin Fichte talks about her commitments towards the cause of turning Dubai into a global shipping hub.

Fichte & Co is thrilled to announce our contribution to  Enforcement of Foreign Judgement 2018.

A homemaker, a mother, a passionate golf player and a Managing Partner of one of the leading law firms in the UAE, Jasamin Fichte is an inspiration to many. If there is one thing the maritime lawyer could do with, it’s more time. To read a good book, go for a quiet walk, maybe finish that Ph.D. on wreck removal, and then there’s a golf handicap that needs some serious work. In an exclusive interview with, Trade Winds, The Global Shipping News Source, Jasamin Fichte talks about her life so far.

In 2013, when a forum member made a typo in a post to announce - in all caps - that he was "hodling," he had no idea that the term would go viral. And so, 'hodl' was born (meaning to hold on to rather than sell), along with many other phrases and urban slang that have since surfaced, thanks to the digital trend that is Bitcoin.

Before the approval of the UAE Federal Decree Law No. 9 of 2016 (the “Bankruptcy Law”) by the UAE Cabinet on 4 September 2016, the bankruptcy proceedings were regulated under the Commercial Code and were limited to court-driven proceeding addressed to liquidate companies rather than assist in restructuring their debts. This new law puts some light on the regulation on how companies should deal with their financial issues. In below article, our Associate from the Dispute Resolution department, Ahmed Salih talks about the bankruptcy proceedings and the preventive measures in the UAE. With over 10 years of experience in the UAE and Sudan, Litigator Ahmed Salih specializes in Commercial Law, Corporate Law, Civil Claims, Labour Disputes, Shari'a Law, personal status cases, Real Estate Claims, and Bankruptcy.

Freezones have always been the topic of discussion in the U.A.E. Amongst the various benefits, 100% foreign ownership is one of the advantages which is enjoyed the most by investors in these freezone companies. In the below article, our Company Setup Specialist, Neelesh Pillai talks about everything that you need to know about setting up a Freezone branch in Mainland.

The absence of a legal framework for bankruptcy has long been a hindrance to UAE business. In the absence of proper bankruptcy laws, even a bounced cheque could land an entrepreneur in jail. The implementation of the relatively new bankruptcy law in the UAE is a huge step forward in improving the country’s economic and regulatory environment.

It is usual for construction and infrastructure projects in the UAE to be procured under FIDIC-based construction contracts, with varying degrees of amendment. Although FIDIC- Fédération Internationale Des Ingénieurs-Conseils (International Federation of Consulting Engineers) contracts are generic and internationally recognized standard form construction contracts, they require amendment for use in the UAE market. In the below article, our Litigator, Mahmoud Ahmed talks about few terms & conditions of this most popular and widely used FIDIC contract.

Under UAE civil law – like in other civil law systems – not all time-bars are mentioned and dealt with in one particular statue. Our Partner, Alessandro Tricoli, and Senior Associate, Shehab Mamdouh explains the different time bars, time limits and deadlines for legal cases under UAE law.

Digital assets are the foundation of the new economy, and the developments of it continue to hit the headlines regularly. Our Partner & Head of Commercial & Technology, Irina Heaver explains different regulations depending on the nature of the specific assets.  This article was also published in LexisNexis - Middle East. 

According to the 2018 Global Ranking on Debt Collection, UAE is one of the most challenging places in the world for recovering the debt. With this in mind, keeping an eye on your cash-flow and expenditures are more vital than ever! Fichte & Co.’s dedicated Corporate and Litigation teams provide specialized commercial advice both for creditors and debtors and offer a tailor-made solution, including methods of recovery involving both judicial and quasi-judicial proceedings. Our debt recovery services minimize the time and expenditure involved in the pursuit of defaulting companies or individuals by applying a “No Cure – No Pay” policy. In the below article, our Associate & Litigator, Moaz Mustafa explains the debt recovery process, the court procedures and the time limitation in the UAE.

The General Data Protection Regulation (GDPR) has been all over the news recently, and concerns all European Citizens whether based in Europe or not. As the GDPR day fast approaches this Friday, May 25th, all companies of all sizes will have to make sure they are ready for the new regulations.   Personal data deserves respect and companies should make sure the data cannot be shared or used without the express permission of their customers. If you are still struggling to understand how to comply with this new regulation, here is all you need to know about GDPR. 

The UAE has climbed to sixth place in 2017 from seventh in 2015 on the list of the future leading maritime capitals. The UAE maritime industry is seeking exemption from the value-added tax as industry falters. Maritime Executives in the United Arab Emirates are lobbying the government to reduce new value-added tax obligations, saying they threaten their slim profit margin and could cause companies to move elsewhere. The industry leaders also stated that tax endangers industry struggling with narrow margins. In a recent article in Bloomberg BNA, our Managing Partner, Jasamin Fichte highlighted some of the latest concerns and their possible solutions such as – What effect has the introduction of VAT had on the UAE maritime industry? Should the industry be exempted or zero-rated? If so, what services/supplies should that apply to? What is the likelihood that the UAE government would agree to exempt/zero-rate the industry? To read the full article, click here.

A claim of close to USD 1 million against Endofa in Dubai is not likely to go away even though the bunker company is now closing its company in the desert state, says a local lawyer specialized in shipping. The claim stems from a failed oil transaction in Africa.

The Federal Tax Authority (FTA) has recently published a clarification on VAT treatment of compensation type payments. Our Associate, Sarra Alsamarrai summarized the examples of situations where the compensation payments may or may not give rise to a "supply" for a taxable purpose.

The game-changing UAE investment law, which is expected to change nation's business landscape by attracting increased foreign direct investments, has come into effect. In the below article, our Associate Sarra Alsamarrai highlighted the main provisions of the FDI Law as it currently stands.

In the Dubai real estate market, whether you are a buyer or a seller, navigating the whole process may seem like a daunting task. But a proper checklist can help you ensure a smooth entry into the property market. Our Associate, Sarra Alsamarrai in the below article, highlighted the top eight considerations purchasers need to focus on before signing the agreements.

The 243 page handbook simplifies the complexity of the current Arabic legal law.

Any legal dispute related to crypto assets will be handled "in exactly the same way as any other dispute.

 Part-time jobs are still a subject of doubt for many UAE residents. Our Associate, Sarra Alsamarrai highlighted some of the key considerations of the Ministerial Resolution which allows part-time work in the UAE to be conducted without the approval of an employee’s sponsor. Click on the link below to read the full article.

Navigating the financial regulatory landscape of a country can be daunting. The myriad of regulators and regulations can make you feel stuck in a grey area – not a comfortable place for someone who wants black and white. Our Associate, Priyasha Corrie answered some of the most commonly asked questions of the financial regulatory system in the UAE.

The number of companies registering with the Federal Tax Authority for value-added tax (VAT) will increase substantially - especially from the retail and F&B sectors - over the coming months as some of the businesses are still preparing to register for new tax regime.

Dubai, UAE, 11 March, 2018: Continuing its aim to facilitate the ongoing dialogue between the region’s legal experts and maritime industry professionals, the Emirates Maritime Arbitration Centre (EMAC) hosted its third successful breakfast session of 2018 on 11 March at its offices in DIFC.

Council preparing for further enhancement in competitiveness of Dubai maritime sector

Purchasing off-plan property has become the new norm, with affordable prices and the increase in incentives being offered, purchasers are quick to jump on the bandwagon. The Dubai Law No. (8) of 2007 On the Matter of Escrow Accounts for Real Estate Development (“Escrow Law”) was issued for the purposes of safeguarding purchaser’s money after the housing crisis. Although there are hefty penalties for developers who breach the Escrow Law, there are no guarantees for project completion, or full security of a purchaser’s money placed in the escrow account. Dubai Law no. 19/2017 was further issued amending certain articles of Dubai Law no. 13/2008 on the Interim Real Estate Register in the Emirate of Dubai (“Real Estate Register Law”), which offered increased protection to developers. Developers can now file a complaint to the Dubai Land Department (DLD) of a purchaser’s non-compliance with their contractual obligations. The DLD will then notify the purchaser, and if need be, attempt to reach a settlement between the developer and the purchaser. This amendment introduced greater certainty in the procedures carried out by the DLD to enforce the developer’s rights.

Definition of bankruptcy: Legally speaking, bankruptcy is an expression used to describe a legal status in which a natural (individual) or legal (company) person owes a sum of money to third parties and ceases to pay its debts when they fall due because of its troubled financial position and insolvency.

According to the 2018 Global Ranking on Debt Collection, UAE is one of the most challenging places in the world for recovering the debt. With this in mind, keeping an eye on your cash-flow and expenditures are more vital than ever! Fichte & Co.’s dedicated Corporate and Litigation teams provide specialized commercial advice both for creditors and debtors and offer a tailor-made solution, including methods of recovery involving both judicial and quasi-judicial proceedings. Our debt recovery services minimize the time and expenditure involved in the pursuit of defaulting companies or individuals by applying a “No Cure – No Pay” policy. In the below article, our Associate & Litigator, Moaz Mustafa explains the debt recovery process, the court procedures and the time limitation in the UAE.

Until the issue of the Federal Law No. 4 of 2012 on the Regulation of Competition, the United Arab Emirates (UAE) lacked a composite law on competition, with elements of competition law strewn over various legislations. In 2013, the said law came into force, aiming to curb anti-competitive practices and regulate economic concentrations.

The Federal Tax Authority (FTA) has recently published a clarification on VAT treatment of compensation type payments, such as payments to settle disputes, and other contractually agreed compensation. Where a payment or fee is not a consideration for a supply, there is no VAT due. Often times, there are penalty clauses or liquidated damages clauses in a contractual agreement between two parties, and when triggered, it is unclear whether this is considered as a supply for VAT purposes.