Member News

United Arab Emirates

08 June 2023 – Select Free Zones Clarify that Unemployment Insurance Scheme is Optional for Employees of Registered Companies

Select free zones, including the Dubai International Financial Center and the Abu Dhabi Global Market, have clarified that employees of companies registered in these free zones are not required to register and subscribe to the unemployment insurance scheme. However, employees in these free zones can still choose to register and subscribe. Some individuals may choose not to subscribe to avoid the fees involved or if they are leaving the country prior to being eligible to receive the benefits from the scheme, which are only received after a one-year enrollment period. This clarification comes after there was some confusion as to whether the subscription was federally mandated in these areas.

08 June 2023 – Grace Period for Overstays for Most Categories of Visitors Now Discontinued

Effective immediately, the immigration authorities in all emirates have discontinued the grace period for foreign visitors who failed to exit the United Arab Emirates within their visa validity period or to extend the duration of stay permissible under the visa they used to enter the country. However, individuals who entered the United Arab Emirates on a visa-on-arrival will still have the 10-day grace period applied. Those individuals who do not comply with the conditions of their visa are subject to a fine of AED 50 for each day of overstay and, upon departure from the United Arab Emirates, must obtain an exit permit (subject to additional government fees). Fines can be paid through the immigration authority’s website or directly at the immigration counters on departure. Previously, foreign visitors were exempt from fines if their overstay period was less than 10 days. However, the implementation of this rule was not consistent within the country and the Emirate of Dubai had already discontinued this concession. Prior to the amendment of the UAE immigration regulations in 2022, the overstay fine for visitors was AED 100 per day.

13 June 2023 – Deadline Extended for Employers to Meet Semi-Annual Emiratization Target.

The Ministry of Human Resources and Emiratization announced the extension of the deadline for private sector companies with 50 or more employees to meet their semi-annual nationalization target by July 7, 2023, instead of the previous deadline of June 30, 2023. The ministry announced the extension in order for employers to work around government and office closures for the upcoming public holiday which will last almost a week. Affected employers must achieve at least one percent of their annual Emiratization target or be subject to a fine of AED 7,000 per month for each vacancy that has not been filled with an Emirati worker.

13 June 2023 – Deadline Extended for Employees to Subscribe to the Unemployment Insurance Scheme

The Ministry of Human Resources and Emiratization (MOHRE) has extended the deadline for individuals employed before December 31, 2022 to subscribe to the Unemployment Insurance Scheme. They must now subscribe by September 30, 2023, instead of the previous deadline of June 30, 2023, allowing them additional time to complete the necessary steps. The MOHRE will impose fines on employees who fail to register with the Unemployment Insurance Scheme by October 1, 2023. Further, as previously announced, individuals who began their employment on or after January 1, 2023, must subscribe to the Unemployment Insurance Scheme within four months of entering the United Arab Emirates on an employment entry permit or within four months of an in-country immigration status change.

22 June 2023 – Mechanism Introduced for Emirati Students Seeking Employment in the Private Sector

The Ministry of Human Resources and Emiratization (MOHRE) introduced an initiative for Emirati students enrolled in a study program approved by the Emirati Talent Competitiveness Council (Nafis) who are seeking employment in the private sector. The initiative, which aims to improve the skills and capabilities of Emirati students, allows the students to receive paid on-the-job training with the employer and, upon graduation from their study program, guarantees full-time employment with that employer. Employers will also benefit from the initiative as the students will be included in the employer’s Emiratization calculation. To participate in the initiative, both parties must sign an “Emirati Student Employment Contract” on a specific template provided by the MOHRE. Furthermore, the employer must ensure that the student is offered training in the same specialization mentioned in the terms of the contract and must obtain a work permit for the student. The student must register with the relevant pension authority in the United Arab Emirates and receive a minimum monthly salary of AED 4,000, which must be paid through the Wages Protection System. Upon graduation, the employer must hire the Emirati national under specific conditions. While the new regulation stipulates that the students must be registered with the pension authority, it is not clear how this obligation would apply to those below the age of 18, which is the minimum age to qualify for registration. Furthermore, per the current Emiratization regulations, only individuals registered with the pension authority may be counted in the employer’s Emiratization calculation. This initiative is part of the UAE authorities’ plan to actively promote training and provide upskilling programs for Emirati nationals to prepare them for employment in the private sector.

Saudi Arabia

1 June 2023 – Additional Benefits Announced for Companies Located in Special Economic Zones, Including Exemption from Saudization

During a Special Economic Zones Investment Forum in Riyadh, the Minister of Human Resources and Social Development announced a number of benefits to companies that open in Special Economic Zones (SEZs) in Riyadh, Jazan, Ras Al-Khair and the King Abdullah Economic City. Notably, companies located in these SEZs will not be required to meet Saudization requirements; however, companies that do choose to employ Saudi nationals will be able to obtain additional benefits from the Human Resources Development Fund, although specific details have not yet been released. Further, companies established within the SEZs will obtain a permanent exemption from Value Added Tax and social insurance tax on transactions between entities in SEZs and will obtain a 20-year tax reduction. The above incentives are intended to create new opportunities for investors to bring their business to Saudi Arabia. Additionally, on May 25, 2023, Saudi Arabia and Iraq discussed the establishment of a Special Economic Zone on the borders of the two countries during the Saudi-Iraqi Coordination Council. Additional details are expected to be forthcoming.

20 June 2023 – New Visit Visa for Investors Announced

The Saudi Ministry of Investment announced a new visit visa for foreign investors seeking to explore business opportunities in Saudi Arabia. The conditions of the visa, including eligibility requirements, among other details, are not yet available as the new category is not yet visible on the electronic platform for Saudi visa applications. The introduction of the new visa aims to simplify the entry process for investors, but it is not clear if the applicant will require a sponsor in Saudi Arabia, like how applicants require a sponsor for the business visit visa.

26 June 2023 - E-Visa for Tourism Expanded to Certain UK US, EU, and Schengen Visa Holders and Permanent Residents

Effective immediately, the Ministry of Tourism expanded the eligibility for e-visas for tourism to individuals holding a valid business or tourist visa issued by the United Kingdom, United States, or Schengen Area countries; permanent residents of the United Kingdom, United States or European Union; and their first-degree relatives. Previously, these individuals could only obtain a visa-on-arrival. Eligible individuals must have a passport valid for at least six months from their intended date of entry into Saudi Arabia and can obtain the e-visa by applying through the Ministry of Foreign Affairs unified visa platform. If their eligibility is based on holding a valid business or tourist visa, they must have used the visa at least once to enter the issuing country. Foreign nationals must pay a fee of SAR 300 (USD 81) for the e-visa (the same fee as for a visa-on-arrival) and pay a fee for mandatory health insurance. The e-visa is valid for one year with a maximum of a 90-day stay (each time) and grants multiple entries into Saudi Arabia. The e-visa will streamline the entry process for eligible individuals as they will not have to wait in line to obtain a visa-on-arrival upon entry to Saudi Arabia.

Oman

06 June 2023 - Self-Service Medical Fitness Examination Tool Launched

The Ministry of Health (MOH) launched an electronic self-service medical fitness examination tool within the MoH’s e-health portal to streamline processing for foreign nationals who are required to undergo medical testing for immigration purposes. The following categories of individuals can use the self-service medical fitness examination tool: applicants for initial or renewed residency cards, family visas or health cards, applicants for student visas, individuals obtaining or restoring citizenship, entrepreneurs and individuals employing foreign workers. Registration for the medical fitness examination can be completed through the portal or at Sanad government services offices (centers authorized to perform government and public services). After registration and completion of online payment, applicants will still need to complete a physical examination at a medical center. The service will be electronically linked with various authorities’ databases, including the Royal Oman Police, the Ministry of Labor, the Ministry of Commerce, Industry and Investment Promotion, and the Health Council of GCC member states. Employers and foreign nationals are advised to register on the portal and can appoint a public relations officer to track relevant medical reports for workers to ensure compliance for immigration purposes. The service is expected to simplify procedures for individuals and companies to obtain medical examination reports, while ensuring transparency, reducing fraudulent reports and saving time and effort through electronic integration.

14 June 2023 - Upcoming Deadline for Mandatory Registration of Employment Details

The Ministry of Labor is reminding employers in Oman of the upcoming requirement to register details of their foreign workforce with the Ministry by July 1, 2023. Employers must register employment details of their foreign workers through the Ministry’s electronic portal by providing personal and employment information, including job title, salary, and educational qualifications. Once the registration is complete, the employer or the foreign worker must appear in person at an authorized service center (Sanad office) to validate the registration by presenting the worker’s original residence card. This process triggers a government fee of OMR 1 (approximately USD 2.60). Employers that do not complete the registration by the deadline may face penalties or be blocked from using the government portal, which is used for various services, including work permit issuance. While employers have had the ability to register details of their foreign workforce for over a year, employers have not previously been required to appear in person to complete the process.

Egypt

16 June 2023 - Visa-On-Arrival Now Available for Nationals of Türkiye

Nationals of Türkiye traveling to Egypt for tourism are now eligible for a single-entry visa-on-arrival. The visa costs USD 25 and allows for a maximum stay of 30 days. Previously, nationals of Türkiye were required to obtain a consular visa prior to traveling to Egypt for tourism.

Morocco

19 June 2023 - Short-Term Work Authorization Introduced

The labour authorities in Morocco have launched a short-term work authorization (STWA) which allows foreign nationals to conduct employment activities for up to three months for an employer in Morocco. In order to work and reside in Morocco using the STWA, foreign nationals must first obtain an entry visa or visa-on-arrival, depending on their eligibility, to enter Morocco, as the STWA does not grant entry rights.

Employers can apply for the STWA electronically through the Taechir portal for applicants in all occupations.

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