Fragomen Monthly MENA Newsletter: Insights on Immigration, Corporate, and Social Security Services

Date Posted:Wed, 11th Sep 2024

Fragomen Monthly MENA Newsletter: Insights on Immigration, Corporate, and Social Security Services

Fragomen Monthly MENA Newsletter: Insights on Immigration, Corporate, and Social Security service in the MENA Region.

 

United Arab Emirates

15 August 2024 - Stricter Penalties Introduced for Labor Law Violations

The United Arab Emirates introduced stricter penalties for labor law violations. The following offences are each now subject to a fine of AED 100,000 to AED 1,000,000 (whereas previously such fines ranged from AED 50,000 to AED 200,000):

• employing a worker without obtaining an appropriate work authorization;

• hiring individuals without providing them with an actual job; and

• using work authorizations for purposes other than those for which they are issued.

Additionally, the offense of ‘False Emiratization’ – misleading labor practices that give a false impression of how many UAE nationals an employer has hired – is now subject to a fine of AED 100,000 to AED 1,000,000. Previously, the fines ranged between AED 20,000 to AED 100,000, depending on the number of times a breach had occurred.

As was previously the case, all of the penalties mentioned above are multiplied by the number of workers affected by a given violation and may be imposed in addition to penalties for violations of other UAE laws, including immigration regulations.

15 August 2024 – Proposed Amendments to Employment Regulations in the Abu Dhabi Global Market

The Abu Dhabi Global Market Authority (ADGM) has proposed employment law amendments that are expected to come into effect in the fourth quarter of 2024. While most of the changes relate specifically to employment regulations, some of the amendments will affect immigration processes in the ADGM. Notable immigration-related proposals include new rules regarding visa cancellations, end-of-service gratuity payments,  remote and hybrid working, and part-time employment. We will report on related developments.

19 August 2024 - Visit Visa for Work Assignment Now Available in Select Free Zones 

• The free zones of Dubai Development Authority and Jebel Ali Free Zone Authority now offer a Mission Visa (also referred to as a Visit Visa for Work Assignment or Mission Work Permit). Previously, such visas were only available on the UAE mainland.

• The Mission Visa is designed for foreign nationals undertaking temporary work assignments.

• Mission Visas allow companies to flexibly hire foreign nationals for short-term, project-based assignments, as opposed to relying on more cumbersome long-term work visa pathways. 

20 August 2024 - Salary Conditions Relaxed for Scientists and Specialists Under Golden Visa Category

The Dubai authorities have reversed their June 2024 decision to disallow allowances (like transportation or accommodation) to be included in the minimum salary amount for highly skilled professionals without a government nomination applying for a Golden Visa under the ‘Scientists and Specialists’ category. Now, these applicants’ minimum salary must be at least AED 30,000 (USD 8,169) and may include allowances. 

21 August 2024 - New Freelancer Activities Possible in Abu Dhabi

The freelancer license in Abu Dhabi now covers an additional 30 activities including, among other activities: artificial Intelligence development; electronic equipment and software design; oil and gas production software; data classification and analysis; 3D imaging production; innovation in computer systems and programs; and online player support services. With these additions, the freelancer license now encompasses 100 different activities. The license – which was first introduced in 2020/2021 – allows foreign nationals to pursue self-employment and to contract with companies in Abu Dhabi. To apply for a freelancer license, applicants are required to demonstrate relevant experience or possess academic qualifications in the chosen field or industry. Expanding the scope of activities available under a freelancer license may increase the number of foreign nationals – especially those with highly skilled qualifications and experience – residing and working in the United Arab Emirates.

30 August 2024 - Details of the Amnesty Program Announced for Foreign Nationals in Irregular Status

According to a policy update, individuals who decide to leave the country during the two-month amnesty period window can obtain a free exit permit and have any fines for illegal stay waived, provided they leave within 14 days from the date of issuance of the exit permit. After 14 days, any previous fines will be reinstated if they have not left the country. Once an individual departs with an exit permit, they will not be subject to any ban and can return to the United Arab Emirates at any time. Those who choose to remain in the United Arab Emirates will have to provide documents from their new sponsor before a new residence permit can be granted. Affected individuals should contact their immigration provider for information on obtaining an exit permit or submitting the required documents.

QATAR

12 August 2024 - New Application, Validity Period Rules for Multiple Entry Work Visa Applicants of Certain Countries

Effective immediately, nationals of Bangladesh, India, Nepal, Pakistan, the Philippines, and Sri Lanka are subject to new Multiple Entry Work Visa (MEWV) application and validity period rules.

The validity period of MEWVs for the above nationals may now be up to 12 months (to match the maximum allowable employment contract duration), depending on the initial labor quota residence duration. Previously, the validity period was only up to 180 days (an initial 90-day period with an option to extend for a further 90 days).

Additionally, the above nationals must now complete medical and biometric procedures in their home country at their local Qatar Visa Centre; whereas previously such applicants were not required to submit any medical or biometric data. Furthermore, the above nationals’ sponsoring company (except those in the Qatar Financial Centre Freezone, who are exempt from this new rule) must now provide an employment contract (which includes salary details) to the Qatar Visa Centre as part of the MEWV application process. Previously, sponsoring employers were not required to provide their applicants’ employment contracts to any authority as part of the application process.

These new rules increase the attractiveness of MEWVs for the affected nationals given the increased validity period, but also present an administrative challenge for employers and applicants given the additional application requirements.

20 August 2024 - New Digital Initiatives Introduced to Facilitate the Retention of Talent in Qatar

The Ministry of Labor (MOL) has introduced new online systems to facilitate the recruitment of graduates from universities in Qatar and Qatari nationals seeking opportunities in the private sector. First, the ‘Ouqoul’ platform is an AI-powered tool aimed primarily at linking Qatar’s university graduates with private sector employers. Once fully implemented, the main features of the platform will include generating skills-based resumes and matching candidates with employers through an AI-powered algorithm, allowing graduates to search and apply for jobs posted by employers in Qatar, offering graduates upskilling courses based on specific skills identified through personality assessments, and conducting online job interviews and facilitating employment contract signature through a direct link with the MOL portal, among other services. This is expected to streamline their hiring process and help universities tailor curricula to match industry demands. Additionally, the ‘Basher’ platform is a service designed to streamline the employment process for Qatari nationals in the private sector by allowing them to authenticate their employment contracts electronically through the MOL portal, increasing job market transparency and helping identify and address employment gaps. These programs help companies to access a broader pool of both local and foreign talent, and ensure efficient and compliant candidate onboarding.

06 September 2024 - Private Sector Nationalization Announced

Qatar has approved a draft law on the nationalization of jobs in the private sector which aims to increase employment of Qatari nationals, in particular through introducing obligations which require employers to determine if there are any eligible local candidates available (the requirements are in the nature of labor market testing obligations used in other countries). Under the proposed law, certain private sector employers will need to prioritize eligible Qatari nationals, or children of Qatari women who are married to foreign nationals (these children are not considered Qatari citizens), over foreign applicants. To meet this requirement, affected employers will need to publish job vacancies through an online jobs portal (including the recently launched ‘Ouqoul’ platform) within one month of the vacancy opening. Additionally, affected employers will need to inform the Ministry of Labor about hiring a candidate (whether a foreign national or Qatari national) within 60 days of the employment contract start date, and submit information about their entire employee headcount every six months. Penalties for violating these rules are expected to include substantial fines and potential imprisonment. 

These new requirements will apply to private business owners, commercial companies (including state-owned and private firms), as well as private non-profit organizations in Qatar, among others. Companies involved in petroleum exploration, production, and petrochemicals are expected to be exempt from these provisions, allowing them greater operational flexibility.

Additionally, to incentivize the employment of Qataris in the private sector, financial support will be provided to Qatari employees and their employers. The government is expected to publish related regulations in the near future, which will provide further details on the nationalization plan, including a list of positions that are expected to be reserved for Qataris.  

SAUDI ARABIA

14 August 2024 – New Investment Regulations Forthcoming

Saudi Arabia has amended its investment regulations, impacting all local and foreign-owned investments in the country. These changes aim to enhance the country’s competitiveness, provide investors with greater transparency and flexibility, and ultimately attract more foreign investment. 

The new law is set to take effect in February 2025, with accompanying executive regulations (yet to be published) that will provide further clarity and details on the new requirements. Consequently, all existing regulations related to investment in Saudi Arabia will be repealed. 

16 August 2024 - Amended Labor Law Forthcoming

The Saudi Council of Ministers has approved labor law amendments which are expected to be implemented in February 2025. Key changes are aimed at improving the labor market, strengthening employee rights, and clarifying employer responsibilities. Key updates include revisions to wage and compensation regulations, changes to resignation procedures and termination rights, clarified probation period rules, and updated leave entitlements.

23 August 2024 - Unified Employment Portal Launched to Improve Job Access for Saudi Nationals

Saudi Arabia has introduced the online ‘Jadarat’ platform, which allows Saudi national job seekers to register a profile and access job opportunities across various sectors. The platform offers customized job search options (filtering by region, career path, and skill set); facilitates online job interviews; provides a mechanism for applicants to review and consider potential employers; and offers employers an interface to post job openings, among other functions. This platform – which is not available to foreign nationals – may assist Saudi-based employers with hiring Saudi nationals and therefore help them achieve Saudization targets. 

BAHRAIN

04 September - Draft Law Amending Bahrainization Policies Currently Under Review

The Council of Representatives in Bahrain is reviewing a draft law that would impose a 30% cap on the number of foreign national workers allowed to work in private-sector commercial establishments. The proposed legislation would impose monetary fines (expected to be up to 20% of a foreign worker’s salary) or administrative penalties on employers who breach the new requirements. Although further details are not clear, it is expected that the 30% cap will subsequently increase in a staggered fashion and that, as a separate initiative, Bahraini authorities will seek to limit the total number of work permits issued within specific timeframes to foreign national workers. The reforms, if implemented, would significantly affect the hiring practices of businesses. In Bahrain, the legislative implementation process can take several months, with both the Shura Council and the Council of Representatives (or the National Assembly, if applicable) needing to approve a law before it is then sent to the King for endorsement. Employers are encouraged to monitor the passage of these reforms and begin reassessing their current recruitment strategies in order to adequately prepare for future legislative changes.

The proposed reforms are part of broader efforts to increase the number of Bahraini nationals working in the private sector. The Bahraini government aims to employ 20,000 Bahraini nationals in the private sector and train at least 10,000 Bahraini nationals by the end of 2024.

KUWAIT

13 August 2024 – Relaxed Family Residence Visa Sponsorship Rules for Certain Foreign Nationals

Foreign nationals who do not hold a university degree can now sponsor their spouse and any children below the age of 14, provided that the sponsor meets other eligibility requirements (including a minimum salary requirement of at least KWD 800 per month). Previously, to be eligible to sponsor dependents, most sponsors had to hold a university degree.

Most foreign nationals seeking to sponsor children age 14 to 18 still require a university degree corresponding to their field of work in Kuwait. However, foreign workers in certain professions (including engineering, medicine, and higher education roles) have been, and continue to be, eligible to sponsor family residence visa applications for their spouses and any children (including those between the ages of 14 and 18) regardless of whether the sponsor holds a university degree.

By making it easier for certain foreign workers to bring their family to Kuwait, this policy change may make Kuwait a more attractive destination for foreign talent, while also increasing retention of already-present talent.

 

IRAQ

22 August 2024 - Digital Booking of Blood Test Appointments for Foreign National Residents

Foreign nationals residing or seeking to reside in Iraq can now schedule their mandatory blood tests online – via the governmental platform ‘urportal’. As part of this reform, it is no longer possible to schedule such appointments in person. This new online scheduling requirement does not extend to Iraqi Kurdistan, where appointments can still only be scheduled in person.

As background, foreign nationals residing in Iraq must undergo a blood test every three months, with new arrivals needing to conduct a test within 10 days of arrival. Results remain valid across this three-month period regardless of whether the foreign national leaves and returns to Iraq. If the validity period of a blood test expires while a foreign national is overseas, they will need to complete a new blood test within 10 days of arriving in Iraq. 

The scope of testing includes HIV and Hepatitis B for all foreign nationals; while nationals of most African and some Asian countries (including India, Malaysia and Pakistan) must also test for malaria. Positive results may lead to deportation.

 

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 immigration 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. 

To learn more about how we can assist you, please visit our website at www.fragomen.com or contact us at [email protected].