The biggest change to UAE laws in history


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November 29, 2021

Before the UAE was founded 50 years ago, the laws governing life on the northern shores of the Arabian Peninsula were very different. A small, largely monocultural population lived by a tried and tested mix of Islamic and customary law, well understood by all who came under its bracket.

But since 1971, the country has undergone one of the fastest rates of economic development ever seen, bringing with it huge social change. Throughout this period, people from all over the world came. Many would choose to make it a home, have families and long-term careers.

The ever-changing social and economic life of the country led to a series of evolutions in laws. On Saturday, a new tranche was announced, marking by far the biggest update to the country's legal system in its history.

They include, in part, measures to protect personal data, to tackle fake news and stronger copyright rules. Investors and entrepreneurs will be allowed to establish and own onshore companies in almost all sectors. The new laws also increase protection for domestic workers and effectively decriminalise consensual relationships outside marriage.

It is important to put these developments in their wider context; the past year has seen a flurry of reforms. In November of last year, new laws decriminalised suicide, changed regulations on alcohol consumption and boosted women's rights, among others. Last month, Abu Dhabi instituted new laws for the emirate's non-Muslim residents, allowing them to conduct procedures such as inheritance claims, divorce and child custody disputes in the jurisdictions of their countries of origin.

What distinguishes last week's announcement is its scale. More details will be released, but they are likely to cover data protection, higher education and crime and punishment.

The announcement comes in the run-up to the UAE's 50th anniversary. Looking to the next five decades, maintaining the country’s growth is high on the agenda, and this ultimately will come down to people's hard work and creativity. Forward-looking laws, however, create an environment where prosperity can be built.

All of this is also an important standard to set for the region. The 2020 instalment of the Arab Youth Survey found that nearly half of young Arabs have considered emigrating from their home countries – 15 per cent of them were actively making plans to do so. For the past decade, the UAE has been the destination of choice for the majority of them.

The next 50 years will throw up new challenges. Many will be felt particularly hard in the Middle East. To weather them, the UAE is planning decades in advance, not months. Legal reform is a complex, but hugely powerful force to strengthen societies and ensure their resilience. For everyone in the UAE, therefore, the largest legal change in its history should be a moment of great importance.

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Transmission: two-speed

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

The Specs

Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
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Gifts exchanged
  • King Charles - replica of President Eisenhower Sword
  • Queen Camilla -  Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
  • Donald Trump - hand-bound leather book with Declaration of Independence
  • Melania Trump - personalised Anya Hindmarch handbag

Company profile

Name: Oulo.com

Founder: Kamal Nazha

Based: Dubai

Founded: 2020

Number of employees: 5

Sector: Technology

Funding: $450,000

Updated: November 29, 2021, 7:30 AM