news story Archives - RIAA Barker Gillette

Gold is now an accepted Sharia investment

Posted on December 5, 2016 - 1:40 pm by riaabgmanager

Gold can now be used as an fully-fledged “commodity” to back Sharia-based financial products.

This follows an initiative launched by London based World Gold council and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and follows approval from the world’s leading Islamic scholars.

Standards have now been set by which financial institutions can apply Sharia principles in the direct physical handling of gold as well as based on any instructions they might give for the metal to be an underlying asset in any transaction. It will be known as the “Sharia Standard No. 57 on Gold and its Trading Controls”.

This immediately raises gold’s prospects to take on a more central role in the global Islamic finance industry, valued at $1.88 trillion (Dh6.91 trillion) in 2015. “The speed of acceptance depends on the individual country — lots of Islamic countries have holdings in bars and coins, not modern day gold products,” said Natalie Dempster of World Gold Council. “This is an opportunity to change that.

“For the last 18 months, WGC has sought advice from Islamic scholars on their stance to whether it’s permissible to invest in gold. The responses varied from “Yes” to “No”, but the vast majority replied “They didn’t know”. There was always that risk of not knowing.

“Now, clear rules have been set out related to trading and structured gold-backed products.”

The earlier doubts on gold’s status as a financial instrument related to its historic status as a “ribawi”, which are everyday commodities in Islamic culture. This meant that stringent transaction rules were in effect to “prevent injustice or inequality between transacting parties”. This meant that “ribawi items must be transferred immediately”.

This meant that gold products had to be spot traded. Another debate swirled around whether gold is a currency or a commodity, “making the design of consistent Sharia rules for modern gold products more difficult”.

“Now that the standards have been set, there is a lot of pent-up demand to bring gold-backed Sharia instruments to market,” said Dempster.

Discussions on the new standard were finalised at the AAOIFI Sharia Board meeting on November 17-19, where the final wording was approved. The development incorporated a consultation period — including public hearing sessions involving key stakeholders — to ensure that the final standard “would be a practical tool for the industry”.

According to Dempster, the Islamic principles do not extend to the mining and sourcing of the metal — “There are already established standards that are applied by the OECD on these activities.”

According to the WGC, gold is less volatile than major Islamic equity indices, REITs (real estate investment trusts) and the Takaful index. And “while it can be more volatile than sukuk, it can be a safer asset class because it carries no credit risk or third-party liability.”

Moreover, gold has brought about better returns than other major Sharia-compliant asset classes in recent times, It has outperformed such assets by 8 per cent over the past eight years and by 28 per cent in the year-to-date.

According to Dr Hamed Hassan Merah, Secretary-General of AAOIFI, “One of the reasons for making this standard a priority was to ensure appropriate products are available as investment solutions within Sharia-compliant options, as well as to help manage liquidity for Islamic financial institutions. This standard … won’t simply enable more Sharia-compliant investment; it may lead towards revolutionary change within the Islamic finance and investment community.”

Source: Gulf News: Gold is now an accepted Sharia investment

DFM signs MoU with Dubai Courts

Posted on November 24, 2016 - 7:48 am by riaabgmanager

Dubai: The Dubai Financial Market (DFM) said it signed a Memorandum of Understanding (MoU) with Dubai Courts to further reinforce cooperation between both sides as well as streamline joint measures in terms of actions taken by Dubai Courts with regards to DFM participants.

Under this MoU, Dubai Courts will be directly connected with the DFM’s electronic services platform, which will be the official channel for applications related to any judicial actions relevant to market participants, the DFM said in an emailed statement.

The MoU paves the way for further cooperation and knowledge sharing between the two sides and provides a clear framework for the implementation of Dubai court rulings related to court restriction, court release and court sell orders, as well as the distribution of cash dividends for investors whose shares are seized by the court.

According to the statement, this move indicates the belief shared by both the DFM and Dubai Courts on the importance of coordination and cooperation in further reinforcing the efficiency of their activities.

Source: Gulf News: DFM signs MoU with Dubai Courts

Shaikh Mohammad issues law on free zones, special development zones in Dubai

Posted on November 22, 2016 - 12:53 pm by riaabgmanager

Dubai: In his capacity as Ruler of Dubai, Vice-President and Prime Minister of the UAE, His Highness Shaikh Mohammad Bin Rashid Al Maktoum issued Law No (15) of 2016 on the regulations issued by the authorities of free zones and special development zones in Dubai.

The new law is applicable to all free zones and special development zones in Dubai, including Dubai International Financial Centre (DIFC). Government entities subject to this law will publish any bylaws or regulations on their official websites and make them available to the public free of charge.

Pursuant to the law, authorities of free zones and special development zones in Dubai may publish their regulations in Arabic or any other language. The regulations published in any authority’s official website is binding and considered effective within 30 days of the date of publication unless stated otherwise.

All regulations issued by authorities of free zones and special development zones in Dubai before Law No (15) of 2016 remain valid and obligatory and must be communicated by the authorities through their official websites within 30 days of the date of activation of the new Law.

The new law will be published in the Official Gazette and is effective from the date of publication.

Source: Gulf News: Shaikh Mohammad issues law on free zones, special development zones in Dubai

Mohammad Bin Rashid sets up Dubai Judicial Council

Posted on November 22, 2016 - 12:46 pm by riaabgmanager

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, issued Decree No. 35 of 2016 forming the Dubai Judicial Council.

The council will be chaired by Shaikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai.

Members of the council include the director-general of Dubai Ruler’s Court, who will serve as the vice-president of the council, Dubai’s attorney-general, Dubai Courts director-general, the head of Dubai Cassation Court, the head of Dubai Court of Appeal, the head of Dubai First Instance Court, and the director of Dubai Judicial Inspection Department.

The decree is effective from the date of issuance and will be published in the Official Gazett

Source: Gulf News: Mohammad Bin Rashid sets up Dubai Judicial Council

Dubai ruler amends law on Dubai Small and Medium Enterprises

Posted on November 22, 2016 - 12:35 pm by riaabgmanager

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday (Monday) issued Law No. 16 amending bylaws of a previous law on the Dubai Small and Medium Enterprises (DSME).

The new law amends DSME objectives to include putting in place policies and strategic plans for entrepreneurship and setting up projects, as well as offering programmes and initiatives that are improved regularly to ensure the development of said projects.

It will be responsible for creating a suitable environment that offers investment opportunities for projects in the private and public sector. DSME will be tasked with studying the state of established projects and identifying key obstacles that obstruct their growth. It will also coordinate with banks and financial institutions to facilitate the availability of suitable financing options for DSME members.

DSME will be tasked with licensing members as per approved terms and conditions. It will collect an annual fee of Dh1,000 from licensed members during the first three years, while a fee of Dh2,000 will be collected during the fourth and fifth years of the license. The amendments stipulate that entrepreneurs from the Gulf Cooperation Council countries will be treated the same as Emiratis, and will be licensed as members as per DSME terms and conditions.

The amendments also state that all government bodies, institutions and companies that are owned by the government of Dubai, or in which the government has a stake that exceeds 25 per cent, will be obliged to exempt DSME licensed Emirati members from fees charged to add them to the aforementioned bodies’ suppliers list.

These bodies will also allocate 10 per cent of sales to DSME members, as well as allocating five per cent of commercial spaces in malls to members. Selections regarding these allocations will be made as per criteria set by DSME.

Priority will also be given for bids or offers submitted by members if the value of their submitted bid does not exceed five per cent of the value of the best tabled bid. Members will also receive a 20 per cent minimum discount on their tenancy contracts during the first three years.

Source: Gulf News: Mohammad amends law on Dubai Small and Medium Enterprises

Shaikh Saud issues law on economic activity

Posted on November 21, 2016 - 11:02 am by riaabgmanager

Ras Al Khaimah: His Highness Shaikh Saud Bin Saqr Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah, on Wednesday issued law No. 7 of 2016 on the economic establishments’ control and commercial protection.

According to the second article of the law, the objectives of the newly issued law are to provide stimulating environment to economic establishments, boost the efficiency and competitiveness, achieve consumers’ interests and sustainable development, promote investors and consumers’ rights, and ensure commitment to fair trade practices in Ras Al Khaimah.

It also aims to provide conducive environment for implementing commercial projects, curb negative commercial practices, ensure compliance of goods and commodities to specifications and requirements and ensure compliance of all individuals and economic establishments to the effective laws when conducting any commercial activities.

The law applies on all facilities that fall under the umbrella of the Ras Al Khaimah Department of Economic Development according to effective laws in the UAE.

To be appointed by virtue of a decision issued by the Shaikh Mohammad Bin Saud Bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, Chairman of Ras Al Khaiman Executive Council, employees of the concerned authority shall be granted the law enforcement capacity to enable them to undertake their responsibilities of inspection, control and establishing evidence in case of violating the provisions of the law.

All of those who fail to comply with regulations of the law and any other decisions issued in implementation of the law shall be fined as per the law.

The new law annuls the Law No. 1 of 2016 on the control of commercial establishments in the emirate of Ras Al Khaimah and any article that contradicts its provisions.

All effective regulations, decisions and systems will remain in place until the regulation of the new law is issued

The law, to be published in the official Gazette, is deemed effective from the date of its publication.

Source: Gulf News: Shaikh Saud issues law on economic activity

RICS arbitration service launched

Posted on August 10, 2016 - 4:56 pm by riaabgmanager

The obligation placed on parties to consider alternative dispute resolution (ADR) mechanisms, is well documented and the subject of our ever evolving laws.

Parties to a dispute (and their lawyers) must actively consider ADR. ADR ranges from non-binding processes, such as without prejudice round the table meetings to mediation, to binding processes, such as expert determinations and arbitration. Resorting to the courts is often referred to as “the last tool in the toolbox”. It is normally prudent for the parties to explore non-binding forms of ADR first as often this is the most cost effective way to resolve a dispute. Where that is not appropriate or it has failed, parties should go on to consider binding ADR processes ranging from expert determinations through to arbitration.

In relation to construction and engineering disputes, the Royal Institution of Chartered Surveyors (RICS) has launched a new arbitration service specifically for construction and engineering disputes which offers:

Fast track arbitration services for disputes under £100,000. The fast track caps a party’s recoverable costs, limits the amount arbitrators can charge and requires the publication of arbitration awards every six months.
A select arbitration service intended to provide a “viable alternative” to the Technology and Construction Court for high value complex disputes publishing awards within 12 months.

The advantage of the RICS service is that this can achieve a more comprehensive deliberation of the issues rather than the current adjudication process (which can often be cursory in approach). Currently only the fast track arbitration service rules are available on the RICS website; further development is planning in time.

This service illustrates the ever-evolving methods of ADR, promoted by various professions.

Practitioners who do not advise their clients of all of the alternatives available to them in particular disciplines,could find themselves facing questions, complaints and possible claims from their clients, having not advised them of cheaper and quicker alternatives to the Court process.

RIAA Barker Gillette contributes to IFC Solar Developer’s Guidebook

Posted on August 10, 2016 - 4:27 pm by riaabgmanager

Abu Dhabi, United Arab Emirates, 19 January 2016–IFC, a member of the World Bank Group, today launched a guide to help investors develop solar projects in Pakistan, part of ongoing efforts to help address the country’s energy shortfall and boost its capacity for renewables.

The guidebook, A Solar Developer’s Guide to Pakistan, provides vital information for international investors and developers implementing solar projects in Pakistan, outlining development procedures and explaining the legal and regulatory mechanisms around them. It also explains the requirements surrounding the preparation, agreement, approval and implementation of projects up to financial close.

Pakistan has been facing a severe energy crisis for the last decade, leading to prolonged load shedding of up to 18 hours daily across the country. About 37 percent of Pakistan’s energy mix is based on expensive fuel. Renewables (excluding large hydro), which can be a cheaper option, contribute less than 1 percent of the current energy mix. While solar potential in Pakistan currently stands at 2.9 million megawatts, only 100 megawatts of grid-tied solar has been commissioned to date. Wind has been thriving since 2012 with at least 477 megawatts reaching financial closure to date, demonstrating a viable market for non-hydro renewables.

‘The solar market in Pakistan is at a nascent stage,’ said Bryanne Tait, IFC Regional Lead for Energy and Resource Efficiency Advisory in the Middle East and North Africa. ‘Pakistan has tremendous potential to meet its power needs from renewable energy sources and, in particular, solar. We hope this guidebook will help provide the information needed to unlock the country’s solar market’.

In December 2015, Pakistan’s National Electric Power Regulatory Authority announced a new round of solar tariffs valid until June 30, 2016. The guide is designed to help solar developers make use of these tariffs and drive international investor participation in the country’s solar market.

Pakistan’s Alternative Energy Development Board, National Electric Power Regulatory Authority, Sindh and Punjab Provinces as well as RIAA Barker Gillette, Eversheds, Ernst & Young, AWS Truepower and Nizam Energy all contributed to the guidebook. Developed as part of IFC’s Middle East and North Africa Renewable Energy program, it is supported by IFC development partners the Australian Agency for International Development, Japan and the Netherlands.

Download full publication [PDF]

Pakistan waives off bidding condition for CPEC projects

Posted on July 19, 2016 - 10:56 am by riaabgmanager

The government on Tuesday permanently waived off the condition of international competitive bidding in Chinese deals and approved to award the construction contract of Eastbay expressway to link Gwadar port with coastal highway to one of three Chinese bidders.

Headed by Finance Minister Ishaq Dar, the ECC made certain decisions that carry far-reaching implications for execution of the China Pakistan Economic Corridor (CPEC) in addition to setting the base for future RLNG-based projects. The ECC, once for all, settled the issue of international competitive bidding in execution of the CPEC projects. It approved a report of a sub-committee, which establishes the federation’s authority to override Public Procurement Regulatory Authority (PPRA) Ordinance of 2002 in execution of strategic nature projects.

The subcommittee cited the Constitution’s Articles 90 and 99 that deal with exercising federation authority and conduct of business. The ECC allowed the Gwadar Port Authority to proceed with the procurement of one of the three listed Chinese Companies as well as preference for the use of the Chinese equipment, in accordance with the CPEC Framework Agreement, said the Finance Ministry. Since China is providing interest free loan for the project, the contracts will be awarded in government-to-government mode, waiving off the condition of international competitive bidding. However, there will still be a competition among Chinese state-owned companies and Beijing has forwarded a set of three names. The competition will be among China Communication Construction Company, China State Engineering Construction Company and CATIC Civil.

Source: The Tribune: Pakistan waives off bidding condition for CPEC projects

Investment in new plant, machinery: provisions allowing tax credits being extended for three years

Posted on July 19, 2016 - 10:55 am by riaabgmanager

In a brief submitted to the National Assembly Standing Committee on Friday, it was informed that one of the cardinal principles of the FBR”s tax policy is growth-oriented taxation. Most of the provisions which allow tax credits on investment in new plant and machinery by an existing industrial undertaking or establishment of new industrial undertakings are going to expire by June 2016. The operation of such provisions (like sections 65B, 65C, 65D, 65E of the Income Tax Ordinance 2001) is being considered to be extended for further three years through the amendment to law through the budget 2016-17.

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