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8 new businesses in Dubai under commercial licenses

Omar Bushahab

Omar Bushahab. (Supplied)

The Department of Economic Development (DED) in Dubai has made eight new additions to the list of business activities licensed in the emirate. This takes the total number of activities to 2,133 from 2,125.

The decision follows feedback on local market needs and the demand-supply situation gathered periodically from various industry sectors as part of facilitating business and providing the necessary resources for business development.

The additions include a number of vital and specialised activities, including: Industrial Robots Assembling, Tax Consultant, Security Documents Printing, Scanner Manufacturing, Hazardous Waste Collection and Transport, Health Consultancy, Financing Broker, as well as Social Media Applications Development and Management.

“This is the second time in 2016 that we have added new business activities. Our team constantly evaluates market needs and gathers opinions and suggestions from existing and potential investors across Dubai to understand their requirements in the fast-changing local market,” said Omar Bushahab, CEO of Business Registration and Licensing (BRL) sector in DED.

Bushahab said the decision will strengthen DED’s plan, which emphasises on developing the emirate’s services profile and facilitating license procedures relating to limited liability companies in view of the role of such firms in promoting private sector growth. The additions will further eliminate barriers to business, encourage new business ideas and create new jobs, thereby benefitting investors and the public, he said.

Industrial Robots Assembling activity

Industrial Robots Assembling activity includes remotely operated or computer-assisted robots as well as specially designed vehicles or telescopic arms that can take the place of humans in dangerous tasks such as detecting explosives or radiation, firefighting and manufacturing processes demanding high standards of precision or labour.

Tax Consultant

Tax Consultant activity is meant for specialised firms engaged in tax advisory to foreign companies in the UAE, helping them to avoid double taxation, implement tax treaties between countries, and review company statements. The minimum qualification required to engage in this activity is a bachelor degree in business administration/economics/law/accounting or a related discipline, along with the three years of practical experience.

Security Documents Printing

Security Documents Printing activity covers printing high-value documents with added security features integrated into the document for protection against forgery, counterfeiting, tampering or alteration. The documents may include ballot papers, bank notes, cheques, passports, stock certificates and identity cards.

Scanner Manufacturing

All scanners, including desktop flatbed, drum and hand-held, used to scan text, hand-writing, or an object and convert it into digital image for electronic transmission or upload come under the Scanner Manufacturing activity, in addition to 3D scanners used for industrial design.

Hazardous Waste Collection and Transport

The Hazardous Waste Collection and Transport activity has been included to license collection of solid/liquid/gaseous waste from manufacturing, medical or agricultural activities, particularly those which cannot be disposed in regular landfills or sewer networks due to their potential health risks and hence requiring special treatment. Dedicated vehicles are required to transport such wastes to their disposal sites, assigned by competent authorities.

Health Consultancies

Health Consultancies are those firms providing expertise, guidance and advice to healthcare institutions on improving business functions, patient safety, and holistic approaches in health promotion and disease prevention. The areas of consultancy involve reviewing regulatory compliance, assessing staffing needs and resources, communicating with clients in order to identify operational problems and efficiency gaps, hospital renovation and redesigning and IT solutions. A B.Sc. in Health Care Administration/Business Administration/Economics along with three years of practical experience is mandatory for the Health Consultant.

Financing Broker

Financing Brokers can act as facilitator between borrowers – whether such borrowers be individuals looking for personal loans or businesses looking at acquisition, development or expansion – and lenders. The Financing Broker assists such borrowers in securing the right finance from banks or other lending institutions.

Social Media Applications Management

Firms helping businesses and individuals to utilise social media, including Facebook, Twitter, YouTube, LinkedIn, Instagram etc. to increase visibility and expand their following as a means for growth are classified under the Social Media Applications Development & Management activity. The activity involves providing and managing such social media content as well.


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UAE Labour Law: Warning, pay-cut, dismissal… 7 penalties you must know

UAE Labour Law

There are certain cases where an employer may fine or even dismiss an employee for misconduct and breach of duties. (File)

UAE’s new labour regulations effective January 1 this year ensure that employees are treated fairly, with strict enforcement encouraging businesses in the country to protect the rights of their workers.

However, there are certain cases where an employer may fine or even dismiss an employee for misconduct and breach of duties, and it is important for all employees to understand the circumstances when these penalties can be imposed.

According to Article 102 of the UAE Labour Law, there are seven disciplinary rules that an employee should be aware of.

These include:
1) A warning
2) A fine
3) Suspension with reduced pay for a period not exceeding ten days
4) Deprivation from or deferment of periodic bonus in establishments containing a system for such bonuses
5) Deprivation from promotion in establishments applying a system for such promotion
6) Dismissal from work without prejudice to the end of service gratuity
7) Dismissal from work and deprivation from the total end of service gratuity or a part thereof.

These disciplinary rules may be inflicted by the employer or his/her representative. However, the law elaborates that such penalties will not be inflicted for reasons other than the ones mentioned exclusively in Article 120.

What is included in Article 120?

There are several clauses in Article 120 under which these disciplinary actions can be taken.

• Termination during probation or on its expiry.
• If the worker has adopted a false identity or nationality or submitted forged certificates or documents.
• If a worker makes a mistake causing substantial material loss to the employer provided the employer notifies the relevant labour department within 48 hours of the accident.
• If the worker disobeys instructions regarding industrial safety or the safety of the workplace provided the instructions have been issued in writing and are posted conspicuously in the workplace in a language accessible to the employee or explained to him orally.
• If the worker does not perform his basic duties under the contract and persists in violating these despite being investigated and receiving a written warning notifying him of termination in the event of repeat offences.
• If the worker reveals his employer’s trade or business secrets or confidential information.
• If the worker is finally sentenced by a competent court for an offence involving honour, honesty or public morals.
• If the worker is drunk or under the influence of an illegal drug during work.
• If while working the worker assaults the employer or his manager or a colleague.
• If the worker is absent from work without a valid reason for more than 20 non-consecutive days or more than 7 consecutive days.

Article 103 of the Law further states that a model list of disciplinary rules and rewards list can be made available to guide employers in setting their own rules in this regard.


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Dubai Court ruling: Off-plan property investors can get full refund

DLD cancellation process

The DLD cancellation process appears to have permitted developers to address issues related to losses from defaulting purchasers quickly. (File)

“The court took the view that the Article 11 Cancellation Process are simply a set of administrative guidelines/recommendations and they do not override the general requirement that a court should determine the matter and decide whether or not the contract is to be terminated due to the purchaser’s default,” Walid Azzam and Karim Mahmoud wrote in the report.

This general requirement is found in Article 267 of the Federal Law 5 of 1985 (‘the Civil Code’), which provides that a contract can only be terminated “by mutual consent [of the parties], court order, or under a provision of the law”, they said.

The Court of Cassation was reported to have said that if a developer re-sold a repossessed unit; the purchaser (even if he was in default) may be able to recover the payment(s) he made.

“Given the recent ruling, the developer’s actions in repossessing the unit and reselling it constitutes a unilateral termination of the contract, so making the developer liable to repay any amounts received from the defaulting purchaser,” the lawyers said.

In the court’s view, Article 11 Cancellation Process is just an administrative step which is separate from obtaining the court’s approval to the termination of the contract.

The law firm further mentioned that in case of a defaulting purchaser, even if the developer is able to de-register the unit from the interim register prior to re-selling that particular unit, it would be strongly recommended to file a claim against the defaulting purchaser to implement the compensation provisions of Article 11 and to secure a court order for the termination of the contract.

The Dubai Land Department (DLD) cancellation process arises out of Law No. 13 of 2008 regulating the Interim Property Register in Dubai (Law No. 13), which was later clarified and amended by Law No. 9 of 2009 (Law No. 9). The revision of Law No 13 by Law No. 9 was intended to set up a clear termination mechanism and to provide guidelines in case purchasers stopped making their contractual payments.

It also established a specific compensation mechanism that correlates to the construction level of the project at the time of the purchasers’ default. Law No. 9 also made the specific article, Article 11, apply retrospectively.

Article 11 of Law No. 9 provides that:

1. In the event the purchaser shall be in default of any of the terms and conditions of the contract for the sale of a real estate unit entered into with the developer, the developer must notify the DLD of such default. Thereupon, the department shall give the purchaser, by hand, registered post or e-mail, a 30-day notice to fulfill his contractual obligations.

2. If at the end of the notice period stipulated in the preceding paragraph the purchaser has not fulfilled his contractual obligations, the following provisions shall apply:

a. In case the developer has completed at least 80 per cent of the project, the developer may keep the full amounts paid and request the purchaser to settle the remaining amount of the contract price. If this was not possible, the developer may request that the property be auctioned in order to collect the remaining amounts due to it.

b. In case the developer has completed at least 60 per cent of the project, the developer may revoke the contract and deduct up to 40 per cent of the purchase price of the real estate unit stipulated in the contract.

c. In case of projects where construction commenced, but did not reach 60 per cent, the developer may revoke the contract and deduct up to 25 per cent of the purchase price of the real estate unit stipulated in the contract;

d. In case of projects whereat construction has not yet commenced for reasons beyond the developer’s control without any negligence or omission on its part, the developer may revoke the contract and deduct up to 30 per cent of the total amounts paid by the purchaser.

Based on this cancellation process, when a purchaser was sent a notice and did not rectify his position, the DLD traditionally de-registered the property from the interim register and re-registered it in the name of the developer.

The DLD cancellation process appears to have permitted developers to address issues related to losses from defaulting purchasers quickly and without having to go through a lengthy court process.

Likewise, the developer also had recourse under Article 15 of Executive Council Resolution No. 6 of 2010 to apply to the courts in the event the monies paid by the defaulting purchaser did not meet the thresholds outlined in Article 11, and to claim for the balance.

“Generally, these laws appear to provide a balance between the needs of developers (who are harmed by both defaults and having to wait for a court judgment to recoup losses) with the interests of purchasers (who stand to have a part of their deposits returned to them).

“However, due to a recent Dubai Court of Cassation judgment, any developer considering terminating a contract through the DLD for lack of payment now faces a great deal of uncertainty,” the lawyers said.


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