Member News

United Arab Emirates

12 April 2023 – A New Initiative to Promote Emiratization in Manufacturing and Technology Industries Announced

The government of the United Arab Emirates announced a new initiative, called the “Industrialist Program,” which aims to increase the number of Emiratis in the manufacturing and technology industries to help reach the Emiratization target. Under the program, private sector employers and training institutes will provide training and upskilling to Emirati nationals to help them access skilled positions in the industrial sector.

The scope of the training is expected to align with the requirements of local employers and will be coordinated by the Ministry of Industry and Advanced Technology. The Emirati Talent Competitiveness Council (Nafis) will provide financial support to eligible private sector entities to support the implementation of such programs, and a special Emiratization committee will be established to ensure that the goals of the program have been accomplished. Participation in the initiative will help employers meet the requirements of the National In-Country Value program (ICV) certification. The ICV certificate is issued to qualifying companies in the UAE who are evaluated based on their contribution to the local economy and grants these companies an advantage during the awarding of government tenders and contracts. Employers in the affected sectors are encouraged to participate in the training programs and take advantage of the financial support provided by Nafis.

28 April 2023 - A New Initiative to Increase Emiratization in Agricultural, Veterinary and Technical Sectors

The Ministry of Climate Change and Environment of the United Arab Emirates launched a new initiative, called “Tamkeen,” which aims to increase the number of Emirati nationals in the agricultural, veterinary and associated technical fields. The first phase of the initiative has been launched to help Emirati nationals gain expertise and train them on the latest best practices in developing the food security system in the United Arab Emirates. The phase will engage 60 Emirati nationals in a comprehensive training program; until 2025, 20 graduates will be trained at a time for six to nine months, while also engaging in various practical tasks to develop their knowledge and skills. Upon completion of the training program, exceptional participants of the program will be offered employment opportunities in various ministerial positions in locations across the United Arab Emirates.

Saudi Arabia

05 April 2023 – Saudization Requirements Announced for Several Activities and Professions

The Ministry of Human Resources and Social Development issued multiple decisions which will implement Saudization ratios for select businesses over the next two years. Private sector companies with three or more employees working in project management professions will be required to reach a 35% Saudization ratio by December 24, 2023 and 40% by December 12, 2024 and must also pay their workers in these professions a minimum monthly salary of SAR 6,000. Private sector companies with three or more employees working in certain procurement professions will have to increase their Saudization ratios to 50% by December 24, 2023. Private sector companies with five or more employees working in certain sales professions will have to increase their Saudization ratios to 15% by December 24, 2023. Private sector companies performing postal and freight activities will have to increase their Saudization ratio to 100% of workers by October 26, 2023; however, the following will be excluded from this requirement: professions in loading and unloading, packaging and wrapping, shelving, product sorting, wheelbarrowing, storing, and facility cleaning, provided that the percentage of these professions does not exceed 20% of total workers in one shift at a time. Further, women’s tailors and women’s beauty salons which employ 10 or more non-Saudi workers must have a minimum of one female Saudi employee by December 24, 2023 with the exception of cleaning, nail care, body care, transportation and delivery companies. Affected employers should review the new Saudization requirements and comply with applicable timelines. Non-compliant employers will be subject to penalties, including the suspension of immigration and employment services.

25 April 2023 - Establishment of Four New Special Economic Zones

Saudi Arabia has introduced four new Special Economic Zones (SEZ), which will offer incentives for companies seeking to expand their business to strategic locations in Saudi Arabia, including Riyadh, Jazan, Ras Al-Khair, and Makkah. The SEZs will improve the overall investment environment by leveraging competitive advantages of each region, including their location, infrastructure and availability of talent, and by offering special regulations to businesses operating in critical industry sectors. An integrated government services platform, called the One Stop Shop, will be established, which is expected to streamline and simplify processes related to the issuance of business licenses and employment of workers (this includes the introduction of standardized employment contracts, exemption from expat levy and the ability to transfer workers from different companies within a SEZ), although exemptions from Saudization requirements are unlikely. Other benefits will include relaxed corporate and other taxes, and an exemption from customs duties on imports and production.

Bahrain

14 April 2023 - Golden License for Investors Launched

Bahrain announced the launch of a Golden License offering incentives and streamlined services to foreign and local companies bringing large-scale investment projects into the country. In order to be eligible for a Golden License, companies and investors must make a major investment or implement strategic projects which create a minimum of 500 jobs in Bahrain or they must make an investment valued at a minimum of USD 50 million. Investors who obtain the license will obtain benefits including automatically being issued Golden Residency permits for themselves, tax exemptions for their company, and streamlined access to government services such as business licensing and building permit approval, as well as support from Bahrain’s Labor Fund, Tamkeen, and the Bahrain Development Bank. Companies will also be assigned a designated account manager from Bahrain’s Economic Development Board which will help throughout the company’s set up process, including finding office locations, taking clients on site visits, connecting them with the appropriate entities, fast tracking approvals where necessary, and working as a proxy of the employer in the country when the employer is located abroad.

Egypt

17 April 2023 - Eligibility Conditions for Foreign Investors to Obtain Citizenship Relaxed

Effective immediately, the government of Egypt has reduced the eligibility conditions for foreign investors to obtain Egyptian citizenship. First, the threshold to purchase real estate in Egypt has been reduced to USD 300,000 and can be paid in installments over a year; previously, a real estate purchase had to be worth a minimum of USD 500,000 and be in an area designated by the relevant authorities in Egypt. Additionally, the investment threshold has been lowered to USD 350,000 for investment in a new or existing business in accordance with the Investment Law in Egypt; previously, the threshold was USD 400,000. Further, individuals can deposit USD 500,000 in the Central Bank of Egypt (refundable after three years without interest); previously, individuals were required to deposit USD 750,000 (refundable after five years). Lastly, foreign nationals can now deposit in installments over a year a non-refundable USD 250,000 towards direct revenue for the state’s public treasury; previously, the deposit could not be made in installments.

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