Fragomen Monthly MENA Newsletter: Insights on Immigration, Corporate, and Social Security Services
Date Posted:Wed, 8th May 2024
IMMIGRATION AND OTHER DEVELOPMENTS IN THE MENA REGION
United Arab Emirates
05 April 2024 - Nationals of Fiji Are Now Visa-Exempt for Tourism
Nationals of the Republic of Fiji can now enter the United Arab Emirates visa-free for tourism for up to 90 days. To enter visa free, these individuals must have a passport with a minimum of six months validity from the intended date of entry, valid health insurance, and a return or onward ticket. Individuals traveling for other purposes (including study or work) must continue to obtain a relevant visa in advance. The policy change is a result of a Memorandum of Understanding which was signed between Fiji and the United Arab Emirates to strengthen bilateral relations.
18 April 2024 - Employers in the Dubai International Financial Centre to Make Additional Pension Contributions for UAE and GCC Nationals
Effective April 1, 2024, employers in the Dubai International Financial Centre (DIFC) must make an additional monthly pension contribution on behalf of certain UAE and Gulf Cooperation Council (GCC) country nationals if the difference between their contribution and an equivalent foreign national’s pension contribution is equal to, or above, AED 1,000 (USD 272). Employers who do not comply with the new regulation will be subject to penalties which can range from financial sanctions to limits being placed on their use of immigration portals.
24 April 2024 - Immigration Rule Changes in Dubai International Financial Centre Free Zone
Effective immediately, the Dubai International Financial Center Free Zone (DIFC) has reduced the maximum validity period for a non-sponsored employment permit to two years, down from three years, possibly to align with the duration of the employment residence permit. This will result in the employers of foreign nationals having to renew their employees’ work permits more often, increasing costs. Additionally, the DIFC implemented new services aimed at simplifying and enhancing immigration application procedures. First, employees on a standard employment residence permit who have been outside the United Arab Emirates for more than six months for valid reasons, such as medical or educational purposes, can now have their employer submit an online application on their behalf for a re-entry certificate to facilitate their return to the country, provided that their employment residence permit has not expired. Previously, this option was not available and employers were required to cancel their employee’s employment residence permit and then apply for a new work permit if the employee was outside the United Arab Emirates for more than six months. Additionally, UAE residence permit applicants seeking to update personal information on an already issued employment entry permit can now have it amended; previously, this was not available and such applicants were required to have their employment permit canceled before their employer could apply for a new permit on their behalf, creating a lengthier process and increasing costs.
SAUDI ARABIA
05 April 2024 - Foreign National Classifications Revised Under the Nitaqat Program
The Ministry of Human Resources and Social Development (MHRSD) has announced that certain categories of individuals will now be classified differently for the purpose of calculating the applicable Saudization percentage under the Nitaqat program. Foreign investors who are owners of private companies will be counted as Saudi nationals under the program at the rate of one foreign investor to one Saudi national. Previously, they were counted as foreign nationals. Furthermore, the MHRSD announced that other foreign nationals will be factored into Saudization percentages at lower ratios. A Palestinian holding an Egyptian passport or a Baluch will now count as a quarter of a foreign national for Saudization purposes. Thus, hiring four individuals from these groups would be the equivalent of hiring one non-Saudi national. This also applies to a national of Myanmar who will also be counted at a quarter of a standard foreign national worker in all regions of Saudi Arabia, except if they reside in Makkah or Madinah, where they are counted as a standard foreign national worker. This change should benefit companies and may help them achieve a higher tier level under the Nitaqat program (which would be automatically updated in the Qiwa platform) where they can benefit from certain immigration incentives.
OMAN
26 April 2024 - OMAN - Omanization Rules Announced for 100% Foreign Investor-Owned Companies
As of April 1, 2024, the Omani government is requiring all companies in Oman which are entirely owned by foreign investors to employ at least one Omani national within one year of starting commercial activities in Oman and register them with the Social Protection Fund. Companies who have not hired at least one Omani individual by the one-year deadline will receive a 30-day grace period, which can be extended once, to rectify any noncompliance. Currently, the government has not released information re-garding whether the grace period will also apply to foreign investor-owned companies already operating in Oman. The Ministry of Commerce, Industry and Investment Promotion will monitor compliance during commercial registration renewals and electronically flag noncompliant companies. It will impose penalties on noncompliant companies, including prohibiting certain yet-unspecified transactions on the Oman Business Platform for foreign investors. Companies that are 100% owned by foreign investors should review the composition of their workforce to ensure that they have hired at least one Omani national and if not, proceed to hire such an individual. This restriction may make it more difficult for employers to meet their hiring needs.
KUWAIT
03 May 2024 - Relaxed Rules Implemented Regulating Foreign Companies
When a related law is implemented in practice, foreign companies establishing branch offices in Kuwait will be able to be 100% foreign owned. Currently, foreign companies must operate through a local agent in collaboration with a Kuwaiti partner or entity owning at least 51% of the company’s shares unless they are located in the Kuwait Direct Investment Promotion Authority free zone, which allows 100% foreign ownership. These changes will remove barriers for foreign companies conducting business operations in the country, making Kuwait more attractive to foreign companies and investors. Further details are expected to be issued by the Kuwaiti government which will outline the process and requirements to establish foreign-owned branches.
EGYPT
19 April 2024 -Minimum Salary Level Increase Forthcoming for Private Sector Employees
As of May 1, 2024 the minimum salary for all employees in Egypt’s private sector has increased to EGP 6,000 per month.
PAKISTAN
03 May 2024 - Multiple-Entry Option for Work Visa Now Available
Foreign nationals applying for their initial work visa for Pakistan can now apply for a multiple-entry option. Similar to the single-entry work visa, foreign nationals under the multiple-entry option will have 90 days from the date of issuance to enter Pakistan, but may be able to stay for up to one year, subject to the discretion of the authorities. Single-entry work visas only permit stays of up to 90 days, and foreign nationals seek-ing to stay longer must obtain a multiple-entry work visa in Pakistan at least 30 days prior to the expiration of their single-entry work visa. Foreign nationals can use the same application process that they use to apply for a single-entry work visa, by applying through the online government portal, Nadra. The government processing fees for the work visa category depend on the applicant’s nationality. The government processing time for a multiple-entry work visa is up to 30 business days, as opposed to up 15 business days for a single-entry work visa. The multiple-entry work visa can be extended for up to two years per extension, provided that the renewal application is filed no later than 30 days prior to the expiration of the existing visa (the government has not announced how many extensions are permitted). This new option provides addi-tional flexibility to employers applying on behalf of their foreign nationals for work visas to Pakistan.
MIDDLE EAST
15 April 2024 - Update on the Geopolitical and Security Situation in the Middle East
As the geopolitical and security landscape in the Middle East continues to evolve, Fragomen is closely monitoring the developments to assess the situation on the ground and help clients navigate the uncertainties while ensuring employee safety and business continuity. After a brief suspension of airspaces of Iraq, Jordan, and Lebanon on April 14th, air travel in the region has resumed to normal with various airlines experiencing only minor disruptions and delays due to the increased air traffic. In some instances, flight cancellations have resulted in foreign nationals being required to modify their travel plans.
Government authorities in the region, including immigration and labour offices in Egypt, Iraq, and Jordan, are working per their usual schedules and no disruptions have been reported. Similarly, consular representations in the region have maintained their regular operations with no disruption to visa application processing.
29 April 2024 - Five-year Multiple Entry Schengen Visa for Nationals of Bahrain Oman and Saudi Arabia
At the European Union – Gulf Cooperation Council High Level Forum on Regional Security and Cooperation in Luxembourg, it was announced that nationals of Bahrain, Oman and Saudi Arabia can now apply for a five-year multiple-entry visa to Schengen Area.
Nationals of Kuwait have been eligible for the five-year multiple-entry Schengen visa since 2023 while nationals of Qatar have been eligible for the multiple-entry visa since 2022. Additionally, nationals of the United Arab Emirates have been exempt from a visa requirement since 2015 and benefit from stays of up to 90 days within a 180-day period.
ABOUT FRAGOMEN
Fragomen is a leading firm dedicated to immigration services worldwide. The firm has nearly 5,500 professionals and staff in 62 offices located in the Americas, Asia Pacific and EMEA. Overall, Fragomen offers support in more than 170 countries.
We are structured to support all aspects of global immigration, including strategic planning, efficiency, quality management, compliance, government relations, reporting, and case management and processing. These capabilities allow us to represent a broad range of companies, organizations and individuals, working in partnership with clients to facilitate the transfer of employees worldwide.
Our Middle East and North Africa (MENA) practice also provides corporate services, including social security assistance, end-to-end corporate setup, corporate secretarial services,
corporate amendments, restructuring activities and more. Our corporate services and im-migration professionals have extensive experience working with multinational businesses, conglomerates, local employers, start-ups and individual investors. We have a deep understanding of the MENA region and maintain strong professional relationships with relevant authorities.
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