The government of the UAE has approved a comprehensive reform of the country’s legal system, which aims to strengthen economic, investment, and commercial opportunities, maximize social stability security, and ensure the rights of both individuals and institutions. It is intended that the new laws and legislative amendments keep pace with the development achievements of the UAE and reflect the country’s future aspirations. More than 40 laws were enacted as part of the reform, representing the most significant legal reform in the nation’s history.
These amendments aim to enhance the legislative framework in different sectors, including investment, trade, and industry, as well as commercial companies, and regulations and protection of industrial property, copyright, trade names, commercial register, electronic transactions, trust services, factoring, and residency, plus relevant laws concerning society and personal safety.
After intensive coordination at the local and federal levels, teams of experts from federal and local governments worked together over the past five months with private sector organizations to create new legal provisions designed to reflect global best practices.
The following are some key takeaways from the announcement relevant to businesses.
Electronic Transactions and Trust Services.
The amendments to the Law on Electronic Transactions and Trust Services give digital signatures the same weight as a handwritten signature. Eliminating the need for physical presence to seal transactions and enabling digital signatures for government transactions, such as contracts and agreements, provided that the country from which the transactions originate has adopted sophisticated authentication mechanisms and trust services. As a result, this will facilitate various civil and commercial transactions, including marriage, personal status, notarial services, rental, purchase, sale, and amendment of real estate agreements.
Industrial property rights.
The UAE industrial property law addresses patents, industrial designs, integrated circuits, non-disclosure agreements, and utility certificates. This law applies throughout the UAE (including free zones). Patents and utility certificates are covered in the law and provide details about the conditions under which they are granted. Among the sections of the law relating to compulsory licensing are those that address the license holder’s rights, the multiplicity of mandatory licensing, and the courts’ exceptions to compulsory licensing conditions.
Trade Marks.
The federal law regarding trademarks has been updated to protect three-dimensional trademarks, holograms, sound trademarks, such as musical tones associated with a company and distinguishing its products, and smell trademarks, such as creating a distinctive aroma for a company or brand.
It also entails the registration of geographical names of trademarks or products whose names are associated with specific geographical regions, countries, or cities known for producing the product to enhance the UAE’s position in the promotion and marketing of its famous products.
In particular, the requirement of obtaining a trade license to register a trademark will be eliminated, and SMEs will be granted temporary protection while participating in exhibitions.
Commercial Companies.
In general, investors and entrepreneurs can establish and own onshore firms in every sector, except for a small number of reserved “strategic activities.” The law aims to introduce specific amendments regarding Commercial Companies: it specifies which companies are exempt from the provisions and corporate governance and strategic activities.
The law also outlines the approvals and licenses that companies need to obtain before they can engage in commercial activity within the emirates, the company’s name, the contract, the incorporation procedures, and the conditions for an increase or decrease capital.
The law also clarifies the board of directors’ responsibilities, executive management, the authority of the general assembly, the prerequisites for the issuance of bonds and instruments, and the penalties imposed on individuals found to violate its provisions.
Online Security Law.
Laws relating to cyber-crime, online harassment, bullying, and fake news will go into effect on January 2, 2022. These laws will be the region’s first comprehensive legal framework to deal with concerns arising from using cybertechnologies.
The law enforces community protections against online crimes perpetrated via networks and information technology platforms. These initiatives include protecting public sector websites and databases, prohibiting the spread of rumors and ‘fake news,’ guarding against electronic fraud and protecting personal privacy.
In particular, this new law prohibits false advertising or promotion online and trading in cryptocurrency, and promoting medical products and supplements without a license.
The law contains provisions regarding the dissemination of misleading and false information. This includes the use of online tools, networks, and platforms to publish, republish, circulate or recirculate false and misleading information, according to the law, as well as the dissemination of false reports claiming to come from official sources or misrepresenting official announcements.
According to the law, courts have the authority to order the confiscation of devices, software, content, or other means used in committing a crime and delete any such information.
Data Protection Law,
By providing a proper governance structure for appropriate data management and protection, the Personal Data Protection Law provides the appropriate framework to ensure the confidentiality of the information and the privacy of community members. Clearly, it defines the rights and responsibilities of all parties concerned.
The provisions of the law also apply to the processing of personal information, whether it involves all or part of the information being processed electronically, locally, or internationally.
It is unlawful to process personal data without the consent of its owner, except in some situations where the processing is necessary to protect public interest, or if the processing involves data of a person who makes their data available to all, or if the processing is required to ensure the compliance with legal procedures.
Specifically, the law defines the provisions governing the handling of personal data. It also specifies the general obligations of companies that handle personal data, including protecting the data and maintaining its confidentiality.
Furthermore, it stipulates the rights and circumstances under which an owner may request the correction of inaccurate personal data and restrict or cease personal data use. Specifically, the law discusses the requirements for the cross-border transfer and sharing of personal data for processing purposes.
UAE Data Office.
This law establishes the UAE Data Office to ensure the privacy and security of personal data.
This office will be affiliated with the Cabinet. It will be responsible for several responsibilities, including preparing and proposing legislation and policies relating to data protection and privacy, proposing and approving the standards for monitoring the implementation of federal legislation, designing and approving a system for complaints and grievances, and establishing guidelines and guidelines to implement this legislation.
Check with your legal team or give us a call at GLI today to find out the most relevant ones for your business.