united arab emirates - reed smith · 2017. 4. 3. · legal developments rent cap law update our...

Legal Developments

Rent cap law update

Our February newsletter reported on the new rent cap lawswhich have been introduced in Abu Dhabi and Dubai in anattempt to regulate the ever increasing rental costs. As wellas introducing a general 7 per cent cap on rent increasesfor both commercial and residential tenancies, the new AbuDhabi regulations also established a Rent Committee toresolve disputes. The chairman of the Abu Dhabicommittee, Mohammad Rashid Al Hamili, has given the firstindication about the tone this committee is seeking to taketo enforce the new law. He publicly clarified that landlordsdo not have the right to increase rent more than 7 per cent,even after the house is evacuated and a new contract ismade. Recently the committee has forced a landlord toreduce rent from AED 55,000 to AED 30,000 after receivinga complaint from the tenant. The tenant was able to provethat within three weeks of signing the contract the rent ofthe previous tenant had been AED 30,000. It is open to atenant to dispute rental increases by lodging a complaintwith the Abu Dhabi Committee within one month of the dateof receiving or rejecting notice of the increase. Tenants willbe hoping that this is a sign of the committee’s willingnessto enforce the new law, although the number of tenantswilling to risk future repercussion with their landlord orlosing their home/office in order to uphold their rightsremains to be seen.

Revision of the Abu Dhabi property ownership law

February saw a further development in Abu Dhabiproperty law with the introduction of Law No. 2 of 2007,

which amends the provisions of Law No 19 of 2005concerning real estate ownership. The new law amendsthe definition of “Disposition” and “Citizen” and clarifiesthe rights of ownership for three different groups – UAEnationals, GCC nationals and others. The new lawconfirms that UAE nationals, companies andestablishments wholly owned by them, government bodiesand others determined by the Abu Dhabi ExecutiveCouncil (ADEC) have the right to own land anywhere in thestate, while GCC citizens and legal entities only have theright of land ownership in the designated investment areas(currently Al Raha, Al Reem and Al Reef).

Non-UAE nationals, natural or legal persons may ownsurface property but not the land itself in investment areas.This includes the right to derive benefit from suchproperties for example through a 99 year lease agreement.The law provides that those with the right to benefit fromthe land or property for more than 10 years shall have theright to deal with it as they wish, including mortgaging it. Inaddition, the owner of the land cannot mortgage it withoutthe permission of both the lessee of the property orsurface. Article 6 of the new law also specifies that suchrights must be registered in accordance with Law No 3 of2005 to be binding.

While this law mainly clarifies and confirms certain aspectsof the property laws, rather than making significant orunexpected changes, one interesting aspect is acomparison with Abu Dhabi’s neighbour Dubai. Dubai infact offers freehold to owners of all nationalities in certainareas, although with regard to high-rise and multipleoccupancy buildings what this actually means in terms oflegal title has yet to be fully defined.

May 2007

United Arab Emirates

May 2007 Newsletter

In this Issue Page no.

- Legal Developments 1

- Construction and Infrastructure Projects 4

- Banking and Finance 5

- International Trade Relations 6

- UAE Economy 7

- Employment 8

- Other news in the region 9

- Firm news 10

May 2007

New law opens the door for non-UAEnationals to invest in Abu Dhabiproperty companies

The Executive Council of Abu Dhabi has recentlyissued resolutions numbers 7 and 8 of 2007regarding ownership of Aldar Properties PJSC andSorouh Real Estates PJSC. While non-UAE nationalscannot own property in Abu Dhabi, even after thenew property law (No 2. of 2007), non-UAE nationalswill now be allowed to own shares in the real estatecompanies Aldar and Sorouh which do in fact ownland in the capital.

The resolutions state that both companies shall beentitled to own real estate in Abu Dhabi and toregister any such real estate in its name and that thisright shall not be revoked by the ownership of stocksby non-UAE nationals and those of the same status.

Non-UAE nationals can now own up to 20 per centof Sorouh’s shares and up to 40 per cent of Aldar’s.

Companies Law amendment

The latest amendment to the Companies Law hasbeen approved by the Federal National Council(FNC). Family-owned businesses will now be able toconvert to public companies by listing a minimumstake of 30 per cent. Family businesses will now beable to list their companies without forgoing control.

Dubai International Financial Centreissues enhanced data protection law

The Dubai International Financial Centre (DIFC) hasrecently issued an enhanced Data Protection Law(Law No.1 of 2007) and has appointed a DataProtection Commissioner to oversee theadministration and enforcement of the new law bythe DIFC authority. The main aim of the DataProtection Law, which was amended following a

period of public consultation, is to ensure theprotection of all personal information which includesany sensitive personal data. It also containsprovisions dealing with the rights of the individuals towhom the data relates (defined as the DataSubjects), when notification to the Commissioner ofthe Data Protection is required and the remedies,liability and sanctions which apply. In line with theprogressive and international nature of other DIFClaws, the 2007 Data Protection Law is fully compliantwith the laws and directives of the European Unionand the guidelines of the Organisation for EconomicCo-operation and Development (OECD), includingthe transfer of data.

New law brings increased regulation forinsurance brokers

Under a new ministerial decision issued by the

Ministry of Economy, individual insurance brokers in

the UAE are now banned from issuing policies,

settling claims directly with the contracting parties

and selling their own policies, except in the case of

motor vehicle policies. H.E. Sheikha Lubna Al

Qasimi, the UAE’s Minister of Economy, issued the

decision which amends a number of the exisiting

rules on insurance brokers earlier this year. Other

important amendments include the amount of paid

up capital of a brokerage firm (set at not less than

AED 1 million) and the requirement for there to be a

minimum holding of 51 percent by a UAE national.

Any brokerage firm incorporated outside the UAE

must have a UAE appointed local agent. The

amendments have also raised the bank guarantee

ceiling to AED 1 million. The new provisions aim to

bring greater transparency and customer protection

to the industry as well as increasing standards. For

example, more financial information must be

submitted annually to the Ministry of Economy, a

minimum level of education and training is now

required and for a non-UAE national to hold the

position of manager at a main branch they must

have a minimum of 5 years’ experience. The

likelihood of conflicts of interest have been

decreased as brokers are now barred from

performing the role of insurance and reinsurance

brokers for the same transaction and in respect of

the same party. Insurance and re-insurance brokers

are also not allowed to perform the role of

insurance consultant.

Printing and publishing industry warnedof strict enforcement of the law

The Director of the Information, Printed Matter andPublications Department at the UAE National MediaCouncil, Saeed Abdullah Al Darmali, has indicatedthat the Council could be tightening media regulationand more vigorously enforcing Federal Law No. 15 of1980 for Printed Matter and Publications. Specifically,printing and publishing establishments have beendirected to obtain prior approval from the UAE Councilfor printing newspapers, magazines, books and anyother publications in the UAE under the 1980 Law. TheDirector commented that the Council has given a 3month grace period to printing and mediaestablishments to enable the necessary arrangementsto be made. Further, as part of the media policy aimedat respecting and consolidating freedom of expressionand in a bid to regulate work under the 1980 Law, allbodies in the UAE are required to comply with certainprovisions including those concerning the issuance oftheir licences, practice of activities and circulation ofprinted matter within the UAE.

Financial control departmentestablished by new law

Under Law No 3 for 2007, a Financial ControlDepartment is to be established for the UAE. The

new law contains 32 articles detailing the duties andresponsibilities of the new department. These includeappointing a Director-General who will be in chargeof the technical and administrative supervision of thedepartment and drawing up its organisationalstructure, subject to the approval of the Chairman ofthe Dubai Executive Council. The new departmentwill monitor the financial activities of governmentdepartments, institutions and companies in which thegovernment owns a minimum of 25 per cent stake,and bodies financially assisted by the government inorder to verify the legality, correctness and suitabilityof the concerned bodies’ accounts which includesthe timely and accurate collection of revenues andpublic expenses according to the budget.

First medical liability law planned

The Ministries of Health and Justice have drafted alaw to deal with medical errors in healthcareinstitutions. This will be the first of its kind in the UAEand is based on systems followed by the UnitedStates and Australia. The law is designed to tacklefindings based on complaints received by theMedical Liability Department.

Crown Prince’s Court restructured

President His Highness Shaikh Khalifa Bin Zayed AlNahyan issued Law No. 4 of 2007 restructuring theAbu Dhabi Crown Prince’s Court. The law stipulatesthat the Court will be a corporate body with financialand administrative independence and completelegal powers to carry out its activities. The aim of theCourt will be to serve as a link to UAE citizens andas such it will comprise a chairman, anundersecretary and a director as well as a number ofspecialised departments and qualified staff. TheCourt’s duties will include coordinating andmanaging the Abu Dhabi Crown Prince’s affairsinside and outside the country.

United Arab Emirates 2|3

May 2007

Construction and infrastructureprojects

AED 500m ‘Bridgeway at Zayed SportsCity’ unveiled

Tourism Development & Investment Company(TDIC) and Abu Dhabi Tourism Authority (ADTA),has partnered with Al Farida Investment Companyto build the AED 500 million ‘Bridgeway at ZayedSports City’ project. The project will comprise ahotel, apartments and shopping centre and willtransform the area around Zayed Sports City. Theproject is due for completion in the fourth quarterof 2009.

Abu Dhabi likely to be biggestconstruction market in the Gulf

The Abu Dhabi Chamber of Commerce and Industry(ADCCI) has released statistics which show thatAbu Dhabi is likely to become the biggestconstruction market in the Gulf. ADCCI believe thatAbu Dhabi will invest $136 billion in projects by theend of this decade and as a consequence it willovertake Dubai and Doha as the largestconstruction market in the region.

Revamp for Abu Dhabi tourist club

Khor Abu Dhabi Property Development, an investorconsortium led by Abu Dhabi’s Al Masaood Group,

will redevelop Abu Dhabi Tourist Club into a world-class tourism, residential and commercial hub. Theconsortium entered into partnership for The Quaysite with the Tourism Development and InvestmentCompany (TDIC), the asset development arm ofthe Abu Dhabi Tourism Authority (ADTA). The sitecomprises 1.5 million square feet and is locatedminutes away from Abu Dhabi’s business centre. Ithas been planned by Australia’s The Cox Groupwell known for its major waterfront projects incountries including Australia, Singapore and SouthAfrica and will be one of the single largest urbanredevelopment schemes in the UAE, featuring AbuDhabi’s first aquarium, 5 star hotel development,luxury apartments and entertainment andrestaurant facilities.

Race for Fujairah 2 water and powerproject hotting up

Suez Energy International and its sister companyAbu Dhabi’s Suez Environment has confirmed thatthey will be bidding for the Abu Dhabi greenfieldFujairah 2 water and power project. With demand forboth resources soaring across the region due to theincreases in population and industrial growth, theimportance of the project is clear. The project will beone of the largest independent water and powerprojects in the UAE and is expected to have acapacity of 2,000 megawatts and 130 million gallonsper day. At least 20 international developers, fromthe development group of Dubai’s AES Oasis andJapan’s Sumitomo to Italy’s Fisia Italimpianti andSingapore’s SembCorp, have pre-qualified for bidsfor the $3 billion project. The bidding officially closedon 29 March 2007.

Fujairah free zone to be the largest ingulf

The Fujairah Free Zone, currently home to a widerange of training, manufacturing and servicescompanies, is set to become the largest in the Gulfregion with the proposed opening of an industrialarea of 2 million square metres. The Fujairah FreeZone Authority (FFZA) is in the process of expandingthe zone to the Saqamqam area with investments ofup to AED 100 million, according to FFZA Director-General, Shareef Habib Al Awadhi. He also believesthat the Free Zone offers unrivalled economy to alltheir investors in terms of time and money toestablish, start and manage operations as well asexcellent connectivity to the rest of the world by air,sea and road.

Abu Dhabi to expand its natural gasliquids production

Abu Dhabi is planning to invest more than $7 billionby 2009 to expand its natural gas liquids (NGL)production. Nasser Al Shammari, adviser to the AbuDhabi National Oil Company (Adnoc) announcedthat Adnoc will be the world’s biggest NGL producerby 2010. Reportedly, more than $7 billion has beenapproved for the expansion of the gas processingfacilities until 2009. This includes a pipeline betweenthe offshore and onshore gas facilities.

First phase of Dubai road toll systembegins in July

Further information is emerging on the first phaseof Dubai’s road toll system, Salik, which isscheduled to be introduced in July. Salik, meaning“clear”, has been chosen as the brand name forthe toll system which it is hoped will ensure thesmooth traffic flow around a city known for itscongestion. The toll of AED 4 will be charged perentry and on both directions around the clock fromAl Garhoud Bridge or on entering Shaikh ZayedRoad from the Fourth Interchange.

Huge increases in power and waterrequired by GCC in next ten years

According to the World Energy Council, the GCCcountries will require 100,000MW of additional powerover the next ten years to meet demand. Experts arealso advising that the region will require substantialinvestments, currently estimated at $100 billion inMiddle East water and desalination projects over thenext 10 years. It is believed that the UAE willaccount for a large proportion of this newinvestment, with Dubai alone looking to spend AED50 billion in the hope of almost doubling its powergenerating capacity. Power and water are key to thesuccess and development of the region. Forexample, Bahrain has seen an increase in waterconsumption of 25 million gallons per day over thelast 5 years and while 5 per cent of the world’spopulation lives in the Middle East, the region onlypossesses 1 per cent of the renewable waterresources of the planet.

Banking and Finance

Emirates Bank and National Bank ofDubai merger set to create the UAE’slargest bank

Dubai Emirates Bank International and National Bankof Dubai plan to merge to create a $45 billion entity,which it is thought will become the largest financialinstitution in the GCC and the Middle East and NorthAfrica region. It is understood that the merger hasreceived the approval of His Highness ShaikhMohammad Bin Rashid Al Maktoum, Vice Presidentand Prime Minister of the UAE and Ruler of Dubaiand that of the government.

Corporate failure warnings for Dubai

Speakers at the Gulf Regional Audit Conference inDubai had strong words of warning for the Emiratesbusinessmen and women in light of the phenomenalspeed at which Dubai has grown in recent years.Among them Nick Leeson, the rogue trader famousfor his role in the downfall of Barings Bank, drewcomparisons between Dubai and the rapid growth of1990’s Singapore. He urged local businesses toinvest in comprehensive auditing infrastructuresadding that it was a “fear of failure” whichencouraged him to gamble on the Singapore futuresexchange and that a culture which “does not toleratemistakes is very dangerous.” Nick Leeson was notalone is his concerns and officials at companies


May 2007

such as Emirates, Dubai Holdings, HSBC and MajidAl-Futaim agreed that breakneck growth andexpanding wealth, coupled with inadequate internalauditing controls, could result in Dubai being proneto similar scandals as involved Enron and Barings.The current ‘succeed at all costs’ mentality of a largenumber of Dubai companies was also seen asmaking them susceptible to such risks.

ADCB signs largest syndicated loanever in the Middle East

Abu Dhabi Commercial Bank PJSC (ADCB) has justcompleted the signing of a US$ 1.5 billion syndicatedloan which is the biggest syndicated loan for a MiddleEastern bank to date. The syndication raised overUS$1.7 billion from an initial launch amount of US$1billion and was supported by a total of 18 banks,ranging from regional to international institutions. Theloan was arranged by Bank of Tokyo-Mitsubishi UFJ,Ltd, BNP Paribas, Commerzbank, ING and StandardChartered. It has an intial maturity date of five yearsand two extension options. This is just the latest in aline of high value transactions generated in the MiddleEast market. Only recently Ahli United Bank secured,what was previously, the largest syndicated loan in thearea with a loan totalling $1.2 billion.

International Trade Relations

US – Middle East trade talks falter

The UAE is continuing in its efforts to increase itsreputation for international trade and promote itsposition as a significant trade link between East andWest. Specifically, economic ties between the USand UAE were the centre of attention during a recentmeeting between Obaid Humaid Al Tayer, Chairmanof Dubai Chamber of Commerce and Industry(DCCI), Ambassador Franklin L. Lavin, United StatesUnder Secretary for International Trade (USDepartment) of Commerce and Paul Sutphin (USConsul General in Dubai).

The UAE trade agreement is part of PresidentGeorge W Bush’s plan to strengthen the economiclink between the US and Middle East and thesemeetings were aimed at discussing ways to enhancethe already significant trade and economic tiesbetween the two parties. In 2005, Dubai’s non-oilforeign trade with the US reached $6.6 billion andmore than 780 American companies are now basedin Dubai, of which 114 are fully owned by Americanbusinessmen. US figures also show significant traderelations. In 2006, trade with America totalled $13.3billion with the UAE importing $11.92 billion worth ofAmerican goods.

However, while beginning on a promising note, thesepolitically contentious free trade talks hit stumblingblocks and have been put on hold with no date setfor their resumption, although it appears informaltrade talks will go on between the two sides. Themain issues cited as “hurdles” by the US UnderSecretary of Commerce for International Tradeconcerned investment and labour. He alsohighlighted the need, as he put it, to reform thebusiness environment to allow for 100 per centforeign ownership of companies across the wholecountry and not just in the free zones, as well aschanging the agent distributor law to eliminate therequirement for most companies to have a local UAEAgent in order to operate in the Emirates.

However, the US Under Secretary did not rule outthe possibility of reaching an agreement before theexpiry of its trade promotion authority on 1 July. Healso emphasized the UAE’s importance as thelargest Middle East market for US exports.

America is hoping to create a free trade area in theMiddle East and has signed pacts with Bahrain,Oman and Morocco in addition to the informal

progress made with the UAE officials in areas suchas intellectual property rights protection, e-commerce and customs.

GCC − European Union free tradeagreement expected by mid 2007

Further talks between the European Union and GCCofficials are currently said to be progressing well andit is hoped that a final deal will be signed by themiddle of the year. Talks between the two sides havebeen progressing since the early 1990s and PeterMandelson, the EU Trade Commissioner, toldjournalists after a meeting in Brussels, that “theywere on track to sign the deal very soon”. Thisoptimism was echoed by the UAE’s Minister ofForeign Affairs, H.E. Shaikh Abdullah Bin Zayed AlNahyan who stated that “the agreement, which wassupposed to be signed last year, has been delayed,yet we expect with the German presidency of theEuropean Union that the issue will be finalised withinthe coming six months”.

Free trade agreement with Japanexpected by year-end

Free trade talks between GCC and Japaneseofficials are continuing and a free trade agreementbetween the parties is expected to be concluded bythe end of 2007, according to the Ambassador ofJapan, Takuma Hatano. Mr. Hatano reported thatJapanese investors want an integrated GCC marketin which to do business. Japan is currently thelargest trade partner of the UAE, and recent bilateraltrade has seen a substantial increase in terms ofboth imports and exports.

Economy

Further uncertainty for the GCC singlecurrency

The proposed 2010 deadline set for the introductionof the single currency for the Gulf Co-operationCouncil (GCC) states looks uncertain after themeeting of GCC central bank governors in SaudiArabia at the beginning of April failed to arrive at anyclear decision. An IMF report in the same month castfurther doubt, saying that some importantpreconditions remain unfulfilled, including the needto better define monetary policy objectives. On theupside, however, the report said that the outlook forthe region remains strong with some moderation ofgrowth among oil exporters.

Abu Dhabi aims to become regionaleconomic hub

Abu Dhabi’s economic ambitions were again underthe spotlight at the World CEO Forum held in thecapital in March. According to Salah Bin Omer AlShamsi, Chairman of the ADCCI, Abu Dhabi’seconomic development will focus more on thepublic-private partnership, privatisation and freetrade agreements, especially with the US and othercountries. Current plans for the emirate include theinvestment of approximately AED 1 trillion in power,construction and tourism, in addition to substantialoil and gas projects.

UAE FDI predicted to fall to US$7.5 billion by 2010

A GCC Special Report by World Business predicts atapering off of foreign direct investment (FDI) in theUAE to US$7.5 billion by 2010. This is roughly halfthe levels of FDI in 2005 and 2006. The reportreflected that this showed the increased economicmaturity of some parts of the GCC on the worldstage. The report also noted that FDI in most otherGCC countries is rising sharply and will continue todo so over the next four years, especially in SaudiArabia as it opens up key sectors to outsideinvestment, and in Kuwait as it emerges from over adecade of uncertainty.


UAE economy expected to grow by 7 percent in 2007

The National Bank of Abu Dhabi has predicted thatthe UAE’s economy, which is the Arab world’ssecond largest, may grow by 7 percent this year,paced by the services and industry sectors. Thiscompares with an estimated growth in 2006 of 8percent and an average annual growth of 7.7percent in the seven years from 2000.

VAT debate continues

The Value Added Tax (VAT) debate continues toprogress and further to the Dubai CustomsAuthority’s VAT study, which we reported on in ourprevious newsletter, it looks likely that members ofthe GCC will introduce the new tax. The OmanGovernment has previously indicated that they wouldprefer to introduce the new tax at the same time asthe UAE, especially Dubai, implements it. It isbelieved that the rate will be set between 3 and 5per cent and that the UAE, Bahrain, Qatar, Kuwait,Oman and Saudi Arabia will all introduce VAT whichwould replace customs duty, which many believe willbe abolished under the free trade agreements.

Employment

The proposed new labour law

The Ministry of Labour is currently reviewingfeedback on its draft new Labour Law. The proposalintroduces a wide range of new provisions onEmiratisation, trade unions, termination, workinghours and holidays and amends the current LabourLaw (Federal Law No 8 of 1980, as amended). The

progress of this draft is being monitored closely asthe law applies to all employees working in the UAEregardless of whether they are UAE nationals orexpatriates, subject to certain exceptions. As part ofits ongoing modernisation the Minister of Labour,H.E. Dr Ali bin Abdullah Al Kaabi, has also madeassurances that all domestic workers in the UAE willsoon be covered under the new Labour Law, as theyare currently covered under the Immigration Law.

One of the most important of the proposed changesconcerns the Emiratisation provisions. Under thenew law, employers who employ non-nationalprofessionals would be required to train a certainnumber of nationals as assistants and may besubject to a levy for employing non-nationals and incases of redundancies would have to dismiss non-nationals first.

The draft also states that an expatriate worker wholeaves work before the end of the definite periodagreed in the contract may not join anotherorganisation unless there has been a lapse of oneyear, even if the new employer agrees. The sameapplies to any contract for an indefinite period. Thedraft would increase the penalties for breach of thelaw for companies to a period not exceeding sixmonths’ imprisonment and a fine not exceeding AED12,000. Furthermore, if a company employs a non-UAE national on a visit visa, without the appropriatelicence from the Ministry, they could be liable to afine of AED 25,000.

One provision which would remain the same is thepublic sector working week (48 hours) although for

May 2007


night shift purposes the weekly hours are increasedto 56. Annual leave would be reduced to a minimumof 21 days as opposed to the current Labour Lawwhich states that annual leave should not be lessthan 30 days. Maternity leave would be 100 days, ofwhich 55 days would be unpaid and 45 days mustbe taken after the pregnancy.

The new law proposes a retirement age of 60, withthe Ministry issuing a resolution for professionswhere permits will be granted or renewed. Theintroduction of provisions on trade unions are citedas particularly important in order to improve labourrelations, ensure payment of wages and resolution ofdisputes. The Ministry has been receiving feedbackon the draft since early February and is nowconducting a review of the draft law.

Ministry of labour allows visa transfer

Under the recent Ministerial Decree No. 119 of 2007,the Ministry of Labour will now permit workers whohave not completed a year at work but seek totransfer their visas to other firms to do so. They musthowever obtain approval from their current sponsors,except for some circumstances in which the Ministryof Labour will issue a visa without the consent of theemployer or sponsor, for example when the workerhas a labour case before the court or has notreceived a salary for 2 months. The employeesbenefiting from this provision must stay with theirsponsor or employer for a period of not less thanthree years. The government’s willingness to ensureprotection for workers’ rights is further evidencedthrough the creation of visa committees in AbuDhabi, Dubai and the Northern Emirates.

New standard contracts introduced fordomestic workers

The UAE Government is to introduce new standardcontracts to regulate relations between domesticworkers and their employers which was implementedthroughout the UAE on 1 April . Under the newprocedures, three original copies of the contract (inArabic and English) must be signed by both parties.Each party will receive one copy and the third will befiled with the Department of Naturalisation. Thecontract will be valid for two years and can beextended by mutual consent. It contains termsincluding salary structure, nature/responsibilities ofwork, annual vacation and air tickets, medical careand termination/break provisions. Its aim is to ensuretransparency between the employer and the workerand that the rights of both parties are protected. The

new contract will be enforced by the Department ofNaturalisation when issuing new work visas and aspecialist unit has been established to arbitrateconflicts.

Other news in the region

Halliburton relocation boosts Dubai’sinternational finance ambitions

US oil services giant Halliburton has announced asurprise relocation from Texas. The move has beendescribed as positive for both the UAE and Dubai,which is now attracting large numbers of overseasinvestors and top international blue-chip firms to avariety of free zones.

The move, which sees Halliburton’s Chief ExecutiveOfficer and Chairman, David Lesar relocate toDubai, originally caused controversy in the US afterfears of job losses and that Halliburton would leaveits home territory entirely. However, the company has

May 2007

confirmed that it will maintain its legal registration inthe US and is not leaving its current Houston base.

Halliburton has a strong presence in the Middle Eastwith nearly 40 per cent of the company’s oil servicesrevenue, totalling $13 billion, coming from the area in2006. The choice of Dubai for its new office, fromwhich the company’s entire worldwide operations willbe run, is believed by many to be further evidence ofthe growth and importance of the Middle East forinternational business and the oil exploration andproduction industry specifically.

Louvre Abu Dhabi Museum one stepcloser

In early March, a 30 year agreement was signed byH.E. Shaikh Sultan Bin Tahnoun Al Nahyan,Chairman of the Abu Dhabi Tourism Authority andTourism Development and Investment Company,and the French Minister for Culture andCommunications, Renaud Donnedieu de Vabres.H.H. Shaikh Khalifa commented that, “theagreement is an important step towards achievingAbu Dhabi’s vision in placing itself as a cultural hubin the region and a bridge of communicationbetween different global cultures and civilisations”.The Louvre Abu Dhabi museum is expected to openin 2012 as part of Saadiyat Island’s Cultural Districtproject and will benefit greatly from the newagreement which provides for long term loans fromthe Louvre and other French museums.

Firm News

Tim Watkins joins RSRB from Trowers &Hamlins

Tim Watkins joinedRSRB’s Dubai office asan Associate in March2007. He specialises incorporate andcommercial law, with aparticular focus on ITmatters.

Tim has been living andworking in the UAE forover four years, movingto Abu Dhabi from

London in 2003. He qualified as a solicitor inEngland & Wales in 2001 after studying law andpolitics at the University of Birmingham.

RSRB Middle East recruits businessdevelopment manager

Annabel Tuck also joined RSRB in March asBusiness Development Manager for the Middle East.Annabel joined the firm from London-based FinancialPR consultancy, Maitland.

Annabel first moved to Abu Dhabi in March 2006, asa secondee to Abu Dhabi Securities Market (ADSM),where she was their Marketing and CommunicationsAdviser. Prior to joining Maitland, she worked inpolitics as Press Officer to the Leader of theOpposition in the UK.

Peter Michelmore appointed Chairmanof British Business Group

Senior Partner for the Middle East, Peter Michelmore,has been elected Chairman of the British BusinessGroup (BBG) in Abu Dhabi. The BBG, which hasbeen established in Abu Dhabi for some 20 years,promotes and develops business relations betweenBritain and the United Arab Emirates and provides aforum for the British business community as well asassisting British trade missions and Britishenterprises contemplating business in Abu Dhabi.

RSRB Abu Dhabi to move offices

RSRB’s Abu Dhabi lawyers will be moving fromFalcon Tower after 9 years in the building. We aredue to move into our new premises – Goldon FalconTower, Hamdan Street – in May.


Peter MichelmoreSenior Partner Middle East

+971 26313010 main+971 26312155 [email protected]

Vince GordonManaging Partner Abu Dhabi


Julian TurnerPartner


Charles KellySolicitor


Fran SkrzypekSolicitor


Vicky ReynoldsSolicitor


Guy SimpsonSolicitor


Karen EllisonTrainee Solicitor


Emma TowersSolicitor


Mahmoud MahadeenLegal Consultant


Joanne NormanSolicitor


Our People − Abu Dhabi

Sean AngleManaging Partner Dubai

+971 4 3197929 [email protected]

Daniel WoodSolicitor


Charles ClarkeSolicitor


Tim WatkinsSolicitor


Erin KiemSolicitor


Our People − Dubai

Reed Smith Richards Butler, PO Box 46904, Falcon Tower, Al Nasr Street, AAbbuu DDhhaabbii UAEt: +971 2 6313010, f: +971 2 6312155, www.reedsmith.com

Reed Smith Richards Butler LLP, PO BOX 506548, Dubai International Financial Centre, DDuubbaaii UAEt: +971 4 3197929, f: +971 4 3650120, www.reedsmith.com

United Arab Emirates

May 2007 Newsletter

The information contained in this Newsletter was compiled for its clients by Reed Smith Richards Butler as a summary of the subject matter covered and is intended to be a general guide onlyand not to be comprehensive, nor to provide legal advice. Reed Smith Richards Butler accepts no responsibility whatsoever for loss which may arise on information contained in this Newsletter.This Newsletter was compiled up to and including 1st January 2007 to 1st May 2007. ©Reed Smith Richards Butler 2007.

Reed Smith Richards Butler LLP is a limited liability partnership registered in England and Wales with registered number OC303620 and registered office at Beaufort House, Tenth Floor, 15 St Botolph Street, London EC3A 7EE, England. The term ‘partner’ is used to refer to a member of Reed Smith Richards Butler LLP. A list of partners of Reed Smith Richards Butler LLP, and their professional qualifications, is available at the registered office. Reed Smith Richards Butler LLP, or a separate but affiliated entity, has an office or an association in each of the places listedopposite. Reed Smith Richards Butler LLP is regulated by the Law Society.

For further information on any topic in this Newsletter, please contact Peter Michelmore, Senior Partner, Middle East ([email protected]) or your usual contact at Reed Smith Richards Butler.

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