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Participation of Consultant Dr. Hisham Fawzy in Expo Contract Event

H&Z Law — Wed, 26 Jun 2024 16:20:39 +0000

Participation of Consultant Dr. Hisham Fawzy in Expo Contract Event
Consultant Dr. Hisham Fawzy participated in an important event organized by “Expo Contract,” a member of the Chamber of Commerce of the Russian Federation and a trading partner of the Russian Export Center. The event focused on the Egyptian investment law and the incentives available for major foreign investors in Egypt. This official event was held in the conference hall of the “Tulip Golden Plaza” hotel on June 25, from 9 AM to 6 PM.

Egyptian Investment Law:
Consultant Dr. Hisham Fawzy delivered a distinguished speech highlighting the advantages of the Egyptian investment law, shedding light on recent amendments made to encourage foreign investments Consultant Dr. Hisham Fawzy explained that the law provides an attractive investment environment through tax and customs incentives, in addition to administrative facilities aimed at expediting investment procedures. He also discussed the investment opportunities available in various sectors such as industry, tourism, agriculture, energy, and infrastructure.

Incentives for Major Foreign Investors:
Consultant Dr. Hisham Fawzy pointed out the special privileges enjoyed by major foreign investors, which include obtaining land at competitive prices, long-term tax exemptions, and facilities for profit and capital repatriation. He also mentioned that the Egyptian government is working to provide a stable and secure business environment that ensures the protection of investors’ rights and facilitates the quick and efficient resolution of disputes.

Participation of the Russian Delegation:
The event witnessed the participation of a “business delegation” of Russian companies and entrepreneurs visiting Egypt to find business partners and build relationships with Egyptian businessmen. The visit included exploring leading companies and industrial associations in Egypt, reflecting the Russian side’s desire to enhance economic and trade cooperation between the two countries.

Event Activities:
Throughout the day, the event included several discussion sessions and workshops covering various aspects of investment in Egypt. The discussions focused on how to strengthen cooperation between Egyptian and Russian companies and showcased success stories of Russian investments in Egypt. Additionally, direct business meetings were organized between businessmen from both sides to discuss potential partnership and cooperation opportunities.

Importance of the Event:
The importance of this event lies in the ongoing efforts to strengthen economic relations between Egypt and Russia and encourage foreign investments in Egypt. It also provides a platform for companies and businessmen from both countries to exchange ideas and experiences and explore mutual cooperation opportunities.

In conclusion, this event represents a positive step towards enhancing economic cooperation between Egypt and Russia, reaffirming the attractiveness of the Egyptian market to foreign investors. These efforts are expected to result in new partnerships and increased investments that will benefit the economies of both countries.

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Dr. Hisham Fawzi’s comments on the federal draft law concerning companies in the UAE – Part Two

H&Z Law — Fri, 21 Jun 2024 10:12:00 +0000

The second part of the project law on federal companies in the UAE, along with the notes of Dr. Hisham Fawzi:

Excellency, the Chairman:

“.3 The company may retain an electronic copy of the originals of any documents and papers deposited and preserved with it according to the controls issued by a decision of the Minister.”

Reason for introducing this clause: This clause was added to accommodate international indicators regarding the ease of corporate operations by facilitating shareholders’ recourse to litigation and the speedy availability of information and documents during trials. It also aligns with the governance principle within the framework of rapid information exchange to preserve shareholders’ rights without delay. The amendment came to complement and confirm the provisions of the Electronic Transactions and Commerce Law.

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, the President, the matter is simple, and the answer is in Article (331), which states: “Except for the mutual termination company, do not hear in denial and no legal excuse once the three years have elapsed lawsuits arising before the liquidator due to liquidation acts and lawsuits arising before partners or managers of the company or board members or auditors due to their functions,” so the period is three years and it is very reasonable for a five-year period to retain records, thank you.

Excellency/Sultan Juma Al Shamsi:

The Proposed Text: “If agreed in the company contract to deprive one of the partners of profit or exempt him from loss … We want to add the following … Or receiving a fixed benefit for his share in the company” If they lost or earned, he is committed to a fixed interest rate, thank you.

Excellency, the President:

Please, the legal advisor.

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

The truth is that this addition does not harm, and it is called “the condition of the lion,” meaning that profit or a fixed percentage can be stipulated, so it can be useful, and it is also permissible to hear the opinion of the ministry, thank you.

Excellency, the President:

Please, the government advisor.

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

My point is that this is void, we affirm the void, meaning this is a third case of void, and Your Excellency says void, and we say the same thing too, thank you.

Excellency, the President:

Please, Your Excellency the Minister.

7/2/15 Page 099 of 272

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, this means that we must include other cases as well, thank you.

Excellency, the President:

If the Ministry’s point of view is that profit also includes these, please, the government advisor.

Dr. Ayman Hekal: (Legal Advisor at the Securities and Commodities Authority)

Excellency, sometimes there are joint-stock companies that issue types of shares eligible for them, so when we come to joint-stock companies, we find a text saying that the Cabinet may issue other types of shares other than ordinary shares, and these shares may be eligible for a fixed interest. The share may give a fixed interest but cannot sell the share. There are other types of shares that conflict with this article, so if we find an issue that it is prohibited or void to obtain a fixed interest, it means that I will not allow – basically – a certain type of shares to be issued, so we cannot add this issue to the article, thank you.

Excellency, the President:

So, brothers, do you agree with this item as it is without amendment?

(Agreement)

Excellency, the rapporteur:

Article (29) became Article (41)

Illustrative profits

“.1 It is not permissible to distribute illustrative profits to partners or shareholders, and the board of directors or whoever acts on its behalf is responsible before the partners or shareholders and the company’s creditors for this action.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, the first item talks about illustrative profits, the second item talks about distributing profits contrary to the provisions of the law, even if they are actual profit numbers because they are supposed to enter the legal reserve, and the third item says “does not deprive the partners or shareholders of profits …” So the best title for the title is “Company Profits” and not “Illustrative Profits,” and thus it is possible to amend the title here from “Illustrative Profits” to “Company Profits,” thank you.

Excellency, the President:

Does the Council agree to this proposal for the article title?

(Agreement)

Excellency, the rapporteur:

Article (41) became Article (47)

Access to records maintained by the registrar

“Subject to the provisions of this law, the interested parties may request from the registrar the following: .1 A copy of the data contained in the records maintained by the registrar.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

This is a legal term, Excellency President, and the stakeholders are exactly like this, and the ministry determines them under the supervision of the judiciary if there is a problem, thank you.

Rapporteur:

Article (47) became Article (42)

Fees payable to the Ministry and the Authority

“The Council of Ministers issues, based on the proposal of the Minister and in coordination with the Ministry of Finance, a decision on the fees due to be paid by companies for the activities carried out by the Ministry and the Authority within the framework of implementing the provisions of this law.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, the clear answer to that is that the Constitution clearly states that taxes are by law, which are the amounts received by the state without performing any service, while fees may be based on a law, and the Constitution Article is clear on that, and the law allowing the imposition of the fee has been issued, so the law must set the rule and allow the administrative entity to impose it, and this is what happened in this article, and therefore the article is sound and constitutional, thank you.

Rapporteur:

Article (11) became Article (11)

Competing business for company business

“.1 The joint partner is not allowed without the (consent) of the remaining partners to practice for himself or for others an activity that competes with the company or to be a joint partner in another company.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, the consent is a condition for survival, and this condition when forming the company cannot be, and at any time he cannot be, so at the time of forming the company, he cannot be a joint partner at all, and after the formation of the company, he cannot enter into another company and be a joint partner, because the guarantee will decrease by (21%), because he has become a guarantor for another company and thus you want to protect the guarantee, thank you.

Rapporteur:

“.2 The manager is not allowed to engage in an activity similar to the company’s activity without written permission from all partners renewed annually.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

The truth is that this issue will face us in many articles, so you cannot put a title for each article covering all the items listed under the article, so we put a title covering most of the items that agree in the field of the title, thank you.

Excellency, the President:

And now, does the Council agree to this item as provided by the government?

(Agreement)

Rapporteur:

Article (14) became Article (11)

Acceding partner

“If a partner joins the company, he is responsible with the remaining partners in solidarity for all his money about the company’s obligations before joining it, provided that the company discloses them to him in advance as he is also responsible with the remaining partners in solidarity for all his money about the company’s obligations following his joining it and any agreement between the partners, including the disclosure mentioned otherwise is not admissible against others.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, this is a correct note, the meaning is clear, “and every agreement between the partners otherwise” applies to all “is not admissible against others,” and thank you.

Excellency, the President:

And now, does the Council and the government agree on the article with this amendment?

(Agreement)

Rapporteur:

“.1 If the company consists of two partners and one of them withdraws, the other partner may within six months from the date of withdrawal registration in the commercial register enter a new partner or more into the company instead of the withdrawn partner, otherwise the company is considered dissolved as a matter of law.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

The withdrawal, Your Excellency President, “unless he has registered the withdrawal” is the recall, as it does not record the commitments and registers the withdrawal, thank you.

Rapporteur:

Article (15) became Article (12)

Situations in which the company is dissolved

“.1 The company is dissolved in any of the following situations: (a) The agreement of the partners is to dissolve it, provided that the agreement of all partners is obtained and the decision is not made more than two months after the date of conclusion of the agreement to dissolve it.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

Excellency, this is a correct note, “between the partnership” does not come and if the contract or document cannot be subject to the state, and if it is not also a document, the person who joins is not named, thank you.

Rapporteur:

Article (16) became Article (12)

Cancelling the company

“.1 The company is cancelled by a decision of the court, and the reasons for the cancellation and the distribution of its assets shall be established by the law.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

This is a legal term, Excellency, and this is the reason, and if there is a problem, the court will be in charge, thank you.

Rapporteur:

Article (18) became Article (15)

Preparation of the final account

“.1 The partners shall prepare a final account within a maximum period of three months from the date of dissolution of the company and its announcement, and this account must be published in two local newspapers, and the partners shall bear the costs thereof.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

This is a legal term, and “and the partners are responsible” is a financial term, and thank you.

Rapporteur:

Article (19) became Article (16)

Representation of the company after dissolution

“.1 After the dissolution of the company, the partners may not engage in any transaction that leads to the completion of the dissolution process and the distribution of its assets, except for transactions necessary to complete the dissolution process, and the partners are prohibited from carrying out acts of competition, either directly or indirectly, with the company.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

This is a legal term, Excellency President, and the company is a financial term, and thank you.

Rapporteur:

Article (20) became Article (17)

Distribution of the remaining company funds

“.1 After the liquidation of the company’s assets and the payment of its debts, the remaining funds shall be distributed among the partners in proportion to their shares, unless the contract provides otherwise.”

Dr. Hisham Mohamed Fawzi: (Legal Advisor to the Council)

And the phrase “and the partners are responsible for it” is a financial term, and thank you.

https://www.almajles.gov.ae/Pages/download.aspx?FileUrl=FncEparURL/71fbc0d7-ffed-4258-8147-0d2aa380e6b3.pdf

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Dr. Hisham Fawzi’s comments on the federal draft law regarding companies in the UAE – Part One

H&Z Law — Thu, 20 Jun 2024 09:43:06 +0000

Dr. Hisham Fawzi’s observations on the federal law project concerning companies in the UAE – Part 1

As part of the committee’s review of its studies on the draft law, it has concluded the following:

Retaining the Title of the Draft Law: The committee suggests keeping the title of the draft law as is, without changing it to “Commercial Companies” as per the current law’s naming convention. This is to avoid legislative gaps regarding civil companies, as the current regulation does not cover many aspects such as decision-making processes, partners’ right to transfer their shares, other partners’ right to reclaim the sold share, and the procedure for amending the company’s contract. The scope of the draft has been broadened to include all civil or commercial companies, with an added safeguard ensuring the law’s applicability to civil companies and avoiding adverse effects like declaring bankruptcy.
Rectifying Constitutional Defects: Provisions that were found to violate the constitution have been adjusted to make them constitutional. This includes empowering the administrative body to reconcile only concerning imposed fines, refraining from initiating criminal cases except upon its request to the public prosecution after reconciliation attempts fail, and making necessary amendments in this regard.
Elimination of Holding Companies: All texts related to holding companies have been removed from the project. The deficiencies of such companies outweigh their advantages, necessitating their elimination to prevent their misuse in contravention of the law.
Board Member Definition: The term “board member” includes the president as a member in the original articles of the project, with governance standards applicable to all. However, this does not preclude the president from having specific provisions when explicitly stated, as in Article 129.
Securities and Commodities Authority: The authority to issue decisions has been transferred to the authority’s board of directors to enhance collective work and decision accuracy.
Timeframe Adjustments: The specified time periods for taking actions have been changed from days to working days to extend the permissible period for taking action.
Nature of Partner’s Contribution: Specifying the nature of the partner’s contribution confirms that their share in the company cannot be considered labor unless they are a solidarity partner.
Minimum Requirement Exemption: The minimum requirement for establishing a public joint-stock company has been reduced to five founders for the case of transforming an existing company into a public joint-stock company, with the cancellation of Article 277 concerning the investment company.
Investment Funds Authority: Investment funds are assigned the conditions and regulations issued by the Securities and Commodities Authority, affirming their personal and financial independence.
Legal Personality: The legal personality of the company is confirmed in the principle of company transformation.
Authority Deletion: The competent authority in Article 292 regarding approval of mergers has been deleted, along with any ministry jurisdiction in Article 298 concerning violation of merger rules and procedures.
Foreign Company Agent: Article 331 has been amended to prevent foreigners from holding the position of foreign company agent.
Accounting Records: Article 323 imposes penalties for not keeping accounting records for up to two years, with a stricter penalty in the following article for failure to keep records for the specified period, replacing penalties to eliminate contradictions and impose the severest penalty for the severest violation.
Temporal Limitation: A temporal limitation has been set to avoid absoluteness, with the addition of the phrase “within the five years preceding the appointment decision” in Article 313 concerning liquidation appointment.
Article 278 Amendment: Article 278 has been amended to confirm the company’s legal personality.
Authority Deletion (Repetition): The competent authority in Article 292 regarding approval of mergers has been deleted, along with any ministry jurisdiction in Article 298 concerning violation of merger rules and procedures.
Foreign Company Agent (Repetition): Article 331 has been amended so that foreigners are not allowed to hold the position of foreign company agent.
Cancellation of Article 277: Article 277 concerning investment companies has been canceled because its name overlaps with others and has no direct relevance to the type of activity.

Remarks by Dr. Hisham Mohamed Fawzi (Legal Advisor to the Council): Excellency, Mr. President, even as we read the introduction of the definitions article, we find it states: “In applying the provisions of this law…” From a technical perspective, when considering whether a specific definition needs to be added, we look at whether this term appears in the provisions following this article. Upon reviewing the entire law, you will not find the terms “sibling” or “ally,” thus there is no need to define them. Therefore, thank you.

Would you like to proceed with the second item, Mr. Chairman? Oh, sorry, Mr. Chairman, Ms. Amal, do you have anything to add?

Her Excellency Dr. Amal Abdullah Al Qubaisi (First Deputy President): Excellency, Mr. President, with due respect to the point raised by Member Ahmed Al Shamsi, I specifically mentioned that we know that at the beginning of each chapter or specific section, the definitions of companies were mentioned. However, between mentioning the types of these companies in detail from the definitions and the remaining articles related to the principles of companies, the names of companies were mentioned without their definitions in the introduction of the article talking about them. This is one. The second part, which we discussed, is civil or professional companies, for which there is no definition at all. Therefore, this is very necessary. This is the Companies Act, and we will include them in it, so we must define them here. Where is the definition of civil or professional companies mentioned? Also, what Rashid Al Shariqi mentioned, yes, there was a previous definition in the committee’s basic proposal for free zones, and now there is no definition for free zones. This must be specified. This definition was mentioned in the Financial Free Zones Act, and also in Article 121 of the Constitution, which stipulates this law. Therefore, I think it is preferable to specify it here, especially since civil and professional companies have no definition at all. If we want this law to include them and to be under its umbrella, we must define them. Thank you.

Mr. President: The floor is yours, Dr. Hisham.

Dr. Hisham Mohamed Fawzi (Legal Advisor to the Council): Mr. President, this is indeed a good idea. If we include these definitions, all issues regarding law divisions will be clear. Now, from the beginning, we will know that the companies addressed by the law are “partnership companies,” “simple recommendation companies,” “liquidation,” “public and private joint-stock companies,” and companies of special form. This will give us a complete idea of the law’s division. Perhaps if we include them in the definitions article, it would be appropriate even if we keep them in their place as well. Thus, we take the existing definition in the article inside the law and place it in the definitions article, keeping both. This achieves both goals: from the moment you read the beginning of the law, you understand its details. Then, when delving into the details, we also have the existing definition. Thank you.

Mr. President: Thank you. Now, does the Council agree to the second item? Mr. Ahmed Al Amash, please.

Her Excellency Dr. Amal Abdullah Al Qubaisi:
Mr. President, with all respect to the point raised by Member Ahmed Al Shamsi, I specifically mentioned that we know that at the beginning of each chapter or specific section, the definitions of companies were mentioned. However, between mentioning the types of these companies in detail from the definitions and the remaining articles related to the principles of companies, the names of companies were mentioned without their definitions in the introduction of the article talking about them. This is one. The second part, which we discussed, is civil or professional companies, for which there is no definition at all. Therefore, this is very necessary. This is the Companies Act, and we will include them in it, so we must define them here. Where is the definition of civil or professional companies mentioned? Also, what Rashid Al Shariqi mentioned, yes, there was a previous definition in the committee’s basic proposal for free zones, and now there is no definition for free zones. This must be specified. This definition was mentioned in the Financial Free Zones Act, and also in Article 121 of the Constitution, which stipulates this law. Therefore, I think it is preferable to specify it here, especially since civil and professional companies have no definition at all. If we want this law to include them and to be under its umbrella, we must define them. Thank you.

His Excellency / Ahmed Mohammed Rahma Al-Shamsi:
Or should we say – Your Excellency the President – before the two clauses “without violating the provisions of this law, this law shall not apply to companies established outside… and therefore… the Cabinet issues” should we place it as a primary condition and beneath it the first and second clauses, so at the beginning of the discussion we say: “without violating the provisions of this law: .1 this law shall not apply to companies established in free zones” and then “.2 the Cabinet issues… if the legal advisor formulates it, we can resolve this ambiguity, thank you.

Your Excellency the President: Thank you, Ahmed, but I think it’s clear from the context. Please proceed, Your Excellency the Counselor.

Professor / Dr. Hisham Mohammed Fawzi: (Legal Advisor to the Council)
It is effective, Your Excellency the President, when you read the article, Clause .1 talks about “the application of provisions if… if it wishes to conduct its activities outside the free zone” we are stuck with its laws or regulations whether they allow or not, this is a matter specific to it, so the proposal at this point is to say: “if it wishes to conduct its activities outside the free zone”, and the second part we were discussing relates to how to eliminate the contradiction, because half of the members understood that the Cabinet would issue exemption decisions, and the other half understood that the decisions the Cabinet would issue relate only to registration and recording, thus to confirm the meaning we want, we say: “In accordance with Clause .1 of this law, the Cabinet shall issue a decision specifying the conditions to be considered for the registration of companies operating”, so what do we consider? We consider that these companies, if they operate outside the free zones, will be subject to the law – as you mentioned, Your Excellency – thank you.

Excellency the Rapporteur:

Article 7 has been amended to become Article 2

Definition of a company

“.1 A company is a contract whereby two or more persons commit to participate, each with a share of capital or work, and to share in the resulting profit or loss.”

Without amendment

Your Excellency the President:

Does the Council approve this clause as proposed by the government? The floor is for Mr. Marwan Bin Ghalita.

His Excellency Marwan Ahmed Bin Ghalita:

Your Excellency the President, I wonder, is it possible to read the clause as follows: without the word “economic”:

“.1 A company is a contract whereby two or more persons commit to participate in a project aiming to achieve profit…” So I propose deleting the word “economic” because as we see in Clause 2, we separated the issue of “economic”, and there are many things that will enter into the issue of projects, so if we say “project” and delete Clause 2, does this align with the law? I don’t know what the opinion of the Ministry and the advisors is, because in Clause 2 we said that the economic project refers to commercial, financial, industrial, agricultural, real estate, professional, or other economic activities, so can we delete it and stick to the phrase “a project aiming to achieve profit…” This is my first intervention, and I have another one, thank you.

Your Excellency the President:

Please proceed, Your Excellency the Counselor.

Professor / Dr. Hisham Mohammed Fawzi: (Legal Advisor to the Council)

No, Your Excellency the President, we cannot delete this and stop at the word “project”, the whole issue is that to avoid civil liability or to involve civil companies. However, we must be clearer in defining what constitutes an economic project in Clause 1, broadly referring to it, and then providing details in Clause 2. And of course, if civil companies will not enter or this issue is suspended, we will have to correct this issue. This is among the third articles that deserve amendment if we exclude civil companies, but so far they are still considered to be included and the matter remains pending, thank you.

His Excellency, the Chairman:

“.2 Exception from the provisions of Clause 1 of this Article by the Cabinet upon the proposal of the Minister in coordination with the competent authorities:

A. To issue a decision specifying the category of activities limited to citizens of the State.

B. To issue a decision specifying the forms of companies, activities, or categories that may be fully owned by a foreign person or where the share of the foreign partner may exceed forty-nine percent of the capital of the company.”

No amendments.

His Excellency, the President:

Does the Council approve Clause 2 of this Article as proposed by the Government?

His Excellency, the President:

Please, Counselor.

Dr. Hisham Mohamed Fawzi (Legal Counsel at the Council):

Your Excellency, the exception stated is as follows: “Companies exempted from the provisions of this law under special federal laws,” thus the entire company can be exempted under law. The exception may also cover a specific part of the company, namely the ownership by foreigners that cannot exceed 49%. Therefore, a law allowing foreigners to own 51% can be issued, making this text effective, but concerning Clause (B) and not Clause 1, which relates to the category of activities limited to citizens of the State. The wording can be changed here to respect that the citizen is the origin, so we say: “that a foreigner may not engage in,” in paragraph (A) of the first clause.

As for paragraph (B) of this clause, it can be deleted based on Article 3, thank you.

His Excellency, the President:

Thank you. Your Excellency, please.

Dr. Hisham Mohamed Fawzi (Legal Counsel at the Council):

Your Excellency, the intended meaning is after establishing the company and before commencing the activity, as it is not reasonable for these committees to exist before the establishment of the company. Therefore, the meaning proposed by the Honorable Member is the most accurate in terms of language, and the wording would be as follows: “and upon these companies after their establishment and before commencing their activities obtaining the approval of the Shariah Supervisory Committees.” If we include the word “internal,” perhaps it would be better to confirm that it is internal supervision and not external. If the Ministry agrees to that, then we all agree, thank you.

His Excellency, the Chairman:

“.1 If the partner’s share is his work, all earnings resulting from this work shall belong to the company unless otherwise agreed, with consideration to what is stipulated in the Copyright and Related Rights Law and the Industrial Property Regulation and Protection Law for Patents, Designs, and Models.”

Page 079 of 272

There is an amendment adding the last sentence to the paragraph and this legal link number (17) for the year 2112 with patents.

His Excellency, the President:

Does the Council and the Government agree to this clause with this amendment?

(Agreed)

His Excellency, Sultan bin Saeed Al Mansouri (Minister of Economy):

Your Excellency, concerning the proposal, I suggest that we begin the sentence as follows: “with consideration to what is stipulated in the Copyright and Related Rights Law and the Industrial Property Regulation and Protection Law for Patents, Designs, and Models, if the partner’s share is his work…” and then continue the paragraph, or perhaps all of this should be in the preamble because the texts of the laws, Copyright and Related Rights Law and Industrial Property Regulation and Protection Law for Patents, Designs, and Models are all supposed to be in the preamble, thank you.

His Excellency, the President:

Your Excellency, please proceed.

Dr. Hisham Mohamed Fawzi (Legal Counsel at the Council):

Your Excellency, Minister’s first proposal is very precise in terms of legislative drafting. When excluding laws, you put them at the beginning of the clause, i.e., in Clause Four, you say: “with consideration to such and such… if the partner’s share…” because you are referring to other laws and not this law. Therefore, the Minister’s proposal is the best, thank you.

His Excellency, the Chairman:

“.2 If the partner’s share in the company is represented by shares, his creditor, in addition to the rights referred to in Clause (1) of this Article, shall file a lawsuit before the competent court to sell these shares to obtain his share of the proceeds from the sale.”

No amendments.

His Excellency, the President:

Thank you, Mr. Ahmed Al Zaabi, please proceed.

His Excellency, Ahmed Ali Al Zaabi:

Thank you, Your Excellency, in the second paragraph, in the case of selling the partner’s share represented by shares, wouldn’t this reduce the company’s capital and thus affect the overall capital? Therefore, there might be an issue, thank you.

His Excellency, the President:

Thank you. We will get clarification from the Counselor.

Dr. Hisham Mohamed Fawzi (Legal Counsel at the Council):

Your Excellency, if you notice, the paragraph says “represented by shares,” it refers to joint-stock companies, which are fundamentally meant for selling shares. Therefore, the creditor stepping into the shoes of the debtor is very appropriate, and everyone buys and sells in this company, but the capital remains unchanged whether by sale or by the creditor taking the debtor’s place, thank you.

His Excellency, the President:

Thank you, Mr. Ahmed Al Shamsi, please proceed.

His Excellency, Ahmed Mohamed Rahma Al Shamsi:

Your Excellency, the Counselor has already stated what I was going to say. The sale process is the transfer of shares from one person to another, while the company’s capital remains unchanged, thank you.

His Excellency, the President:

Thank you. Now, does the Council agree to this clause and the article as a whole?

(Agreed)

https://www.almajles.gov.ae/Pages/download.aspx?FileUrl=FncEparURL/71fbc0d7-ffed-4258-8147-0d2aa380e6b3.pdf

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Facilitating Success: How Organizational Restructuring in Egypt Benefits Investors

H&Z Law — Mon, 03 Jun 2024 15:13:48 +0000

Introduction

In recent years, Egypt has undertaken a series of regulatory and administrative reforms aimed at improving the business environment and attracting both foreign and local investments. Organizational restructuring is a key part of these reforms, designed to streamline procedures, reduce bureaucracy, and enhance transparency. This article explores how organizational restructuring in Egypt benefits investors and facilitates their business success.

Simplifying Procedures and Reducing Bureaucracy

Digitization and Online Services:
- The Egyptian government has made significant strides in digitizing government services, making it easier for investors to obtain licenses and permits online instead of relying on traditional paper-based procedures. This step reduces the time and effort required to launch new projects.
One-Stop Shop System:
- The “one-stop shop” system has been established to simplify procedures for investors, allowing them to access all necessary services and procedures from a single location. This system minimizes interactions with multiple agencies and reduces bureaucratic complexities.

Enhancing Transparency and Accountability

Improving the Legal Framework:
- Numerous business and investment-related laws and regulations have been updated to ensure the protection of investor rights and to foster a better business environment. These updates include bankruptcy laws, company laws, and laws related to intellectual property rights protection.
Combating Corruption:
- The Egyptian government has launched several initiatives to combat corruption and enhance transparency in government transactions. These initiatives include strengthening the role of regulatory bodies and improving monitoring and accountability mechanisms.

Encouraging Innovation and Entrepreneurship

Supporting Startups:
- The Egyptian government provides significant incentives and support for startups and entrepreneurs, including financial and training facilities and the creation of business incubators to provide an environment conducive to the growth of new companies.
Developing Technological Infrastructure:
- Significant investments have been made in improving technological infrastructure to facilitate digital businesses and encourage innovation. These investments include expanding high-speed internet coverage and enhancing telecommunications services.

Supporting Foreign Investment

Special Economic Zones:
- Several special economic zones have been established that offer tax and customs exemptions for foreign investors. These zones provide a favorable regulatory environment and encourage investments in specific sectors such as manufacturing and technology.
Public-Private Partnerships (PPP):
- The Egyptian government encourages public-private partnerships to execute large-scale projects in infrastructure, energy, and services. These partnerships offer substantial opportunities for investors and ensure shared risks and returns.

Improving the Business Environment

Skills Development and Education:
- Initiatives have been launched to improve the education system and develop workforce skills to meet market needs. These initiatives include vocational and educational training programs in collaboration with the private sector.
Enhancing Quality of Life:
- The government is working to improve the quality of life by developing infrastructure and essential services such as healthcare, education, and transportation. These improvements make Egypt a more attractive destination for both investors and workers.

Organizational restructuring in Egypt is a crucial step towards improving the business environment and attracting investments. By simplifying procedures, enhancing transparency, encouraging innovation, supporting foreign investment, and improving the overall business climate, Egypt provides a conducive environment for investors to achieve success. With these ongoing reforms, Egypt’s attractiveness as a global investment destination is expected to continue growing in the coming years.

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Investing in Agriculture and Food Industries: A Gateway to Sustainable Economic Growth

H&Z Law — Mon, 03 Jun 2024 14:34:42 +0000

Introduction

Investment in agriculture and food industries is one of the most promising sectors in Egypt, given its strategic importance in supporting the national economy and achieving food security. This article explores the opportunities and challenges facing investors in this sector, key government initiatives to stimulate investments, and the crucial role of innovation and technology in enhancing productivity.

Importance of the Agriculture and Food Industries Sector

Food Security:
- Achieving food security is a strategic goal for any country, with the agricultural sector playing a vital role in providing essential food supplies for the population and reducing reliance on imports.
Employment Opportunities:
- The agriculture and food industries sector provides vast employment opportunities, particularly in rural areas, helping to reduce unemployment rates and improve living standards.
Boosting Exports:
- Egypt has significant potential to export agricultural and food products to global markets, contributing to the trade balance and increasing foreign currency reserves.

Investment Opportunities in the Sector

Expansion of Organic Farming:
- The global demand for organic products is witnessing significant growth, offering investors the opportunity to develop organic farms that meet international standards.
Food Processing Industries:
- Investors can tap into opportunities in food processing industries such as fruit and vegetable packaging, juice production, and canned food manufacturing.
Modern Irrigation Technologies:
- Investing in modern irrigation technologies presents opportunities to increase water use efficiency and improve agricultural productivity, enhancing the economic viability of agricultural projects.

Challenges Facing Investors

Climate Change:
- Climate change impacts agricultural productivity through weather fluctuations and droughts, necessitating the adoption of sustainable agricultural strategies to address these challenges.
Infrastructure:
- Investors face challenges related to developing agricultural infrastructure, such as improving transport networks, roads, and providing storage and refrigeration facilities.
Financing:
- Agricultural projects require significant financing, and investors may struggle to obtain the necessary funding at reasonable interest rates.

Government Initiatives to Stimulate Investments

Provision of Agricultural Land:
- The Egyptian government is providing agricultural land to investors on favorable terms, encouraging the establishment of new agricultural projects.
Financial Support:
- The government offers financial support programs and concessional loans to farmers and investors in the agricultural sector to boost investments and achieve sustainable development.
Encouraging Legislation:
- Laws and regulations related to agricultural investment have been updated to streamline procedures and provide a supportive and transparent investment environment.

Role of Innovation and Technology

Smart Agriculture:
- Technology enhances agricultural productivity through smart agriculture applications that rely on data and analytics to improve crop management and resource efficiency.
Innovation in Food Industries:
- Innovation in food industries can improve product quality and extend shelf life, boosting competitiveness in local and global markets.
Education and Training:
- Education and training play a pivotal role in developing the human capacities needed to manage agricultural and food industry projects effectively, contributing to sustainability and growth in this sector.

Investment in agriculture and food industries offers a golden opportunity for sustainable economic growth in Egypt. By leveraging available opportunities, overcoming existing challenges, and embracing innovation and technology, investors can achieve rewarding returns and contribute to food security and national economic enhancement. With continuous government support and investment stimulation, the future of the agricultural and food sector in Egypt appears promising and attractive to investors from around the world.

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Enhancements in the Tourism Sector: Boosting Egypt’s Appeal to Global Tourists

H&Z Law — Mon, 03 Jun 2024 13:36:05 +0000

Introduction

Tourism is a cornerstone of the Egyptian economy, significantly contributing to job creation and revenue generation. In recent years, Egypt has implemented a series of enhancements in the tourism sector aimed at boosting its appeal as a global tourist destination. These improvements encompass infrastructure development, enhanced tourist services, increased security, and promoting unique tourist sites. This article examines the key enhancements made in the tourism sector and how they contribute to attracting more visitors to Egypt.

Infrastructure Development

Modernizing Airports:
- Egypt’s main airports have undergone modernization and expansion to increase their capacity and improve services. For instance, Cairo International Airport and Sharm El Sheikh International Airport have been upgraded, enhancing the travel experience for tourists and increasing logistical efficiency.
Developing Transport Networks:
- The government has invested in developing land and maritime transport networks, including improving major roads and constructing new ones connecting tourist areas. These developments facilitate easier and more comfortable travel between cities and tourist sites, making travel more convenient for tourists.

Improving Tourist Services

Upgrading Hotels and Resorts:
- Programs have been implemented to renovate and upgrade hotels and resorts to ensure high-quality services that meet visitors’ expectations. These programs include improving accommodation standards, providing modern recreational and sports facilities, and ensuring excellent service delivery.
Training Tourism Sector Staff:
- Initiatives have been launched to train tourism sector staff to the highest professional standards. These initiatives offer training courses in hospitality, tour guiding, and customer service, ensuring a high-quality tourist experience.

Enhancing Security

Strengthening Security Measures:
- Security measures in tourist areas and archaeological sites have been strengthened to ensure visitor safety. These measures include increasing the number of security personnel, installing modern surveillance cameras, and enhancing cooperation with international security agencies.
Launching Rapid Response Systems:
- Rapid response systems for emergencies have been introduced at tourist sites, including trained emergency teams and medical facilities to provide immediate first aid when needed.

Promoting Tourist Sites

Global Promotional Campaigns:
- The Egyptian Ministry of Tourism has launched global promotional campaigns to highlight Egypt’s unique tourist sites. These campaigns include television and digital advertisements, participation in international tourism fairs, and partnerships with global travel companies.
Diversifying Tourism Products:
- Tourism products have been diversified to include adventure tourism, eco-tourism, cultural tourism, and leisure tourism. This diversity attracts different types of tourists seeking varied and unique experiences.

The enhancements in Egypt’s tourism sector are a crucial step towards boosting the country’s appeal as a global tourist destination. By developing infrastructure, improving tourist services, enhancing security, and effectively promoting tourist sites, Egypt aims to increase visitor numbers and achieve sustainable growth in the tourism sector. These enhancements not only attract more tourists but also enhance the sector’s ability to provide a memorable tourist experience, encouraging repeat visits and further exploration of Egypt’s rich history and beauty.

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Economic Reforms in Egypt: Paving the Way for Global Investments in 2024

H&Z Law — Mon, 03 Jun 2024 13:27:59 +0000

Introduction

In recent years, Egypt has undergone significant economic transformations driven by substantial reforms aimed at enhancing growth and attracting foreign investments. As 2024 approaches, Egypt is emerging as a prime destination for global investments, leveraging an improved economic environment and investor-friendly policies. This article reviews the key economic reforms implemented in Egypt and how they are paving the way for increased global investments.

Structural Reforms to Boost the Economy

Currency Liberalization:
- In November 2016, the Central Bank of Egypt decided to float the Egyptian pound, aligning official and parallel market rates, enhancing transparency, and boosting confidence in the Egyptian economy. This measure was crucial in encouraging foreign investments and improving the balance of payments.
Subsidy Reforms:
- The Egyptian government restructured the subsidy system, particularly for fuel and electricity, to reduce the burden on the state budget and redirect resources more effectively toward social and developmental programs.
Tax System Reforms:
- The tax system was simplified and made more efficient through the introduction of the value-added tax (VAT) and the broadening of the tax base, which increased government revenues and improved the business environment.

Infrastructure Development

Egypt has invested heavily in infrastructure development, including building new road networks, expanding ports, and upgrading the electricity grid. These projects not only improve the quality of life for citizens but also attract foreign investments by providing advanced infrastructure that meets global investors’ requirements.

New Suez Canal Project:
- The New Suez Canal project is one of the most prominent initiatives aimed at enhancing global trade and increasing revenue from the canal. This project has increased the canal’s capacity to accommodate large ships and improved navigation services.
Development of New Cities:
- Through the establishment of new cities like the New Administrative Capital and New Alamein City, Egypt aims to alleviate pressure on existing urban areas and provide modern environments that meet contemporary living needs. These projects offer substantial investment opportunities in housing, infrastructure, and services.

Encouraging Foreign Investment

To attract foreign investments, Egypt has implemented several policies and measures aimed at improving the investment climate.

New Investment Law:
- The new investment law provides significant incentives and facilities for investors, including tax and customs exemptions, protection of intellectual property rights, and streamlined procedures for establishing companies.
Special Economic Zones:
- Egypt has established several special economic zones that enjoy tax and customs exemptions and logistical facilities, making them attractive destinations for investors.

Improving the Regulatory Environment

The Egyptian government has worked to improve the regulatory environment by simplifying bureaucratic procedures and enhancing transparency.

Digitization of Government Services:
- Several initiatives have been launched to digitize government services and simplify procedures related to establishing companies and obtaining licenses, reducing corruption and increasing government efficiency.
Strengthening the Rule of Law:
- Numerous legal reforms have been implemented to strengthen the rule of law and protect investors’ rights, including updating company and bankruptcy laws.

As 2024 approaches, Egypt is poised to become a leading destination for global investments thanks to substantial economic reforms. By improving infrastructure, encouraging foreign investment, and enhancing the regulatory environment, Egypt provides a conducive environment for sustainable economic growth and attracting global investments. These reforms are a crucial step toward achieving comprehensive development and enhancing Egypt’s position on the global economic stage

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Participation of Advisor Dr. Hisham Fawzi in the Federal Draft Law Regarding Quran Memorization Centers in the UAE

H&Z Law — Mon, 03 Jun 2024 13:21:22 +0000

Federal Draft Law Regarding Quran Memorization Centers

Honorable Rapporteur:

Article (14) as presented by the government:

“It is prohibited for the centers to undertake the following:

Collecting donations and alms, including zakat, for the purpose of spending them in the centers or disposing of them in any way.
Holding lectures, seminars, and religious lessons without obtaining approval from the relevant authority as appropriate.
Using the centers for purposes other than those designated.
Engaging in any activity that violates the provisions of this law.
Printing books and publications related to the centers’ activities without prior approval from the relevant authority.”

Committee Amendment: The article became Article (15) and states:

“It is prohibited for any center to undertake the following:

Collecting donations and alms, including zakat.”

Justification: The committee deleted the clause “for the purpose of spending them in the centers or disposing of them in any way” from this item to ensure the prohibition is comprehensive.

Honorable President:

Does the council agree on the first item as amended by the committee?

Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

In truth, Honorable President, administrative penalties such as warning or alerting or cancellation are considered sufficient. We should not include fines here because there are other criminal penalties, which would result in multiple criminal penalties. Therefore, fines should be deleted here because other criminal penalties are stipulated elsewhere, and they cannot both be imposed together. Therefore, it was necessary to delete this in this case. Thank you.

Dr. Mohammed Matar Salem Al Kaabi (Chairman of the General Authority of Islamic Affairs and Endowments):

Honorable President, esteemed members, this matter is very important for the centers, and we have consulted legal experts who informed us that fines are considered administrative penalties and not criminal penalties requiring the procedures of prosecution and the public prosecution stipulated in the Code of Criminal Procedure. That is first. Secondly, for example, the Ministry of Labor imposes fines on violating establishments. The decision is ultimately up to you. Thank you.

Honorable President:

Please proceed, advisor.

Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Honorable President, in truth, the council has a long-standing consistent opinion that fines are considered criminal penalties, shifting the burden of proof from the public prosecution to the defendant. This is not permissible, and it would enforce the decision even through physical coercion without awaiting a trial. There are many reasons we have explained for this matter. Thank you.

Honorable Rapporteur:

Item (2) as amended by the committee:

“2. The president has the right to suspend any licensed center that practices a violation or assign someone deemed suitable to manage it temporarily, or close any establishment practicing an activity subject to the provisions of this law without a license.”

Honorable President, should I read the justification? It is long.

Honorable President:

No need for that. Now, does the council and the government agree on this item as amended by the committee? The floor is open to Mr. Hamad Al Rahoumi.

Mr. Hamad Ahmed Al Rahoumi:

Honorable President, I believe the correct phrasing is “and assign” not “or assign”. Thank you.

Honorable President:

Yes, it is not a matter of choice, so it should be “and assign” not “or assign”. Does the council and the government agree on this item as amended? Please proceed, advisor.

Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Honorable President, in truth, the correct phrasing is “or assign” not “and assign”. The clause states: “The president has the right to suspend any licensed center that practices a violation or assign someone deemed suitable to manage it temporarily…”. Thus, the president has the right to either suspend the center temporarily or assign someone else to manage the center temporarily. It is a matter of choice in this case. Thank you.

Honorable Rapporteur:

Penalties

Article (18) as presented by the government:

“The imposition of penalties stipulated in this law does not preclude any more severe penalties prescribed by any other law, nor does the imposition of any disciplinary sanctions stipulated in this law prevent the imposition of the penalties stipulated in this law or any other law when necessary.

Anyone who practices any of the activities stipulated in this law without a license or permit shall be punished by imprisonment for a period of no less than two months and a fine not exceeding fifty thousand dirhams or either of these penalties.”

Committee Amendment: The article became Article (19) and was divided into two clauses, stating:

“1. Anyone who practices any of the activities stipulated in this law without a license or permit shall be punished by imprisonment for a period of no less than two months and a fine not exceeding fifty thousand dirhams or either of these penalties.

The imposition of penalties stipulated in this law does not preclude any more severe penalties prescribed by any other law.”

Justification: The article was divided into two clauses to facilitate understanding.

The penalty was placed in the first clause, while the non-preclusion of any more severe penalties was placed in the second clause.

The deleted phrase, “nor does the imposition of any disciplinary sanctions stipulated in this law prevent the imposition of the penalties stipulated in this law or any other law when necessary”, was removed because it is unnecessary, as it is a basic principle assumed in all laws that disciplinary sanctions do not substitute for the imposition of criminal penalties for the same act.

Honorable President:

Does the council and the government agree on this article as amended by the committee? The floor is open to the Chairman of the Authority.

Dr. Mohammed Matar Salem Al Kaabi (Chairman of the General Authority of Islamic Affairs and Endowments):

Honorable President, if possible, I propose adding the following phrase: “…and the relevant authority may refer serious violations to the public prosecution for investigation,” if you find it appropriate. Thank you.

Honorable President:

Please read the proposed text slowly.

Dr. Mohammed Matar Salem Al Kaabi (Chairman of the General Authority of Islamic Affairs and Endowments):

The proposed addition is: “…and the relevant authority may refer serious violations to the public prosecution for investigation.” Thank you.

Honorable President:

Please proceed, advisor.

Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Honorable President, this addition is not legally necessary because a criminal violation must be referred to the public prosecution. However, this addition implies discretion, and this matter is not discretionary but mandatory; any criminal violation must be referred to the public prosecution. If someone teaches without a license or establishes a center without a license, it becomes mandatory to refer the case to the public prosecution. Additionally, there are judicial officers whose job is to document the violation. Thank you.

Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Honorable President, the solution is very simple and is found in the following article, which states: “Employees designated by a decision from the Minister of Justice in agreement with the president shall have the status of judicial officers to document what occurs in violation of the provisions of this law and the regulations issued pursuant thereto, within their jurisdiction.” This is a well-established principle in the state that judicial officers are responsible for detecting and reporting crimes. We cannot state in a specific law that serious violations are reported, as any criminal violation, serious or minor, must be reported. Judicial officers are responsible for this, and failure to do so makes them accountable to the public prosecution. Thank you.

Honorable President:

So, judicial officers perform this task within the framework of the law. Now, does the council and the government agree on this article as amended by the committee?

(Approved)

https://www.almajles.gov.ae/Pages/download.aspx?FileUrl=FncEparURL/f2675177-eb84-4677-9ab1-07fb554929b4.pdf

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Participation of Advisor Dr. Hisham Fawzi in the Draft Law Regarding the Exploitation, Protection, and Development of Living Aquatic Resources in the United Arab Emirates

H&Z Law — Mon, 03 Jun 2024 12:49:04 +0000

Federal Draft Law Amending Federal Law No. (23) of 1999 on the Exploitation, Protection, and Development of Living Aquatic Resources in the United Arab Emirates

Honorable Secretary:

Newly introduced clause (2) by the committee states: “2. Erecting barriers in fishing waters that alter the pattern of water currents or obstruct the movement of aquatic life, or filling or dredging the seabed or shores, or removing, exploiting, or dredging marine grasses, except with a license necessitated by the public interest issued by the competent authority in coordination with the ministry.”

Honorable President:

Please proceed, Mr. Advisor.

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Honorable President, regarding the first paragraph which states: “… any materials or methods specified by the executive regulation,” there is an existing original article in the law, which is Article (23), addressing this matter. It states: “Fishing is prohibited using absolutely banned fishing tools or equipment, or using tools or equipment prohibited at certain times or in specific areas, or according to specific specifications, or for certain types of living aquatic resources. The executive regulation specifies the tools and equipment used in fishing, and the tools and equipment that are restricted or prohibited from use.” Therefore, this is already covered under Article (23), making the addition unnecessary. Hence, as proposed by the committee, it is better to avoid redundancy. Thank you.

Honorable President:

So, Honorable Minister, this is already included in Article (23) of the same law, making it unnecessary here. Please proceed with the second clause, Mr. Advisor.

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Regarding the second clause newly introduced by the committee, this clause addresses fishing waters. According to the definition, fishing waters include territorial waters, which may extend up to (211) miles from the coast. Thus, it pertains to all waters, not just the coast. Thank you.

Honorable President:

Please proceed, Honorable Minister.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

Honorable President, I disagree with the advisor because this clause specifies the prohibited actions. The clause specifically names nylon material, and we argue that other materials or methods may need to be prohibited in the future. Therefore, we should not close the door because this is a law. If we only ban nylon and someone uses a new material that is not nylon, they could argue that they are not violating the law. Why restrict it unnecessarily?

Honorable President:

Therefore, we keep the proposed addition by the Honorable Minister, which is: “… or any other materials or methods specified by the executive regulation or by a decision of the ministry.” … The phrasing is important, Honorable Minister. Please read it to us again. Proceed.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

The proposed phrasing as mentioned before: “… or any materials or fishing methods specified by a decision of the ministry” because these matters are subject to change. Thank you.

Honorable President:

Please proceed, Mr. Advisor.

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

The article I mentioned, Honorable President, which is Article (23) of this law, states: “… and the tools and equipment that are restricted or prohibited from use …

Honorable President:

No, no, we are now discussing Article (26) regarding the first clause. Let’s focus a bit. The first clause states: “The following is prohibited: fishing using bottom trawling nets or fixed bottom nets, or using lights, or using nets made of nylon material,” and the Honorable Minister added at the end of the clause: “… or any other materials or fishing methods specified by a decision of the ministry.” Does the council agree with this proposal? Mr. Sultan Al Shamsi, you have the floor.

Sultan Jumaa Al Shamsi:

Honorable President, it should be specified by a decision or by the executive regulation. Also, Honorable President, it should include both methods and equipment because it is possible that the nets themselves might be made of a non-prohibited material, but the method used for fishing is prohibited. Therefore, it is important to emphasize both the method and the equipment. Thank you.

Honorable President:

The intent is methods or materials. Proceed, Honorable Minister.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

It is important to mention “or any methods or materials.” Thank you.

Honorable President:

Please proceed, Mr. Advisor.

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

Regarding the second clause provided by the government, which states: “The executive regulation specifies the methods, specifications, and controls for fishing tools and equipment and the necessary licenses for them,” it was deleted by the committee because it is covered under Article (23) of this law. With the amendment of the first clause and also not deleting this clause and the existence of Article (23), it would seem like we are repeating the same meaning perhaps three times. Thank you.

Honorable President:

Please proceed, Honorable Minister.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

Honorable President, Article (23) discusses equipment, and here we are talking about methods and materials, so there is no problem with that.

Honorable President:

No problem, Honorable Minister. We will add to the first clause both methods and equipment. Please proceed, Mr. Advisor.

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

In this case, we add only methods, Honorable President, and leave the other article for equipment and tools. Thank you.

Honorable President:

Proceed, Honorable Minister.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

We proposed “methods or materials.” Thank you.

Honorable President:

So, does the council agree on the first clause as proposed by the Honorable Minister?

(Agreed)

Honorable President:

And now does the council agree on the second newly introduced clause by the committee? Please proceed, Honorable Minister.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

What I mentioned applies to the first clause. As for the second newly introduced clause by the committee…

Honorable President:

In fact, regarding the second newly introduced clause, the members insist on it. Proceed.

Dr. Rashid Ahmed bin Fahd (Minister of Environment and Water):

If the members insist on it, we propose an amendment to remove the ambiguity. We suggest adding at the end of the clause the phrase “… in accordance with the relevant regulatory legislation.” This is to clarify that there are existing regulatory legislations. For example, Law (24) addresses the environmental impact of any project anywhere in the country, whether on an island, on land, or at the coast. Therefore, we propose – if the council insists on keeping this clause, which we believe is unnecessary – to add the phrase I mentioned at the end of the clause, “… in accordance with the relevant regulatory legislation.” Thank you.

Honorable President:

Mr. Rashid Al Shreiki, the Honorable Minister now proposes adding a phrase at the end of the newly introduced clause so it would read: “… except with a license necessitated by the public interest issued by the competent authority in coordination with the ministry, and in accordance with the relevant regulatory legislation.” Please proceed.

Rashid Mohammed Al Shreiki:

Honorable President, doesn’t the Honorable Minister think that this could create confusion regarding which law prevails? Is it the Environmental Protection Law or the current law which specifically protects living aquatic resources? Thus, this specific law might restrict the general provisions of the Environmental Protection Law, causing confusion. However, if the council believes that this addition will not cause confusion, I personally have no issue with it. Thank you.

Honorable President:

Mr. Advisor, will there be any confusion if we add the phrase proposed by the Honorable Minister?

Mr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

In fact, if the word “license” is understood to comply with the relevant regulatory legislation, it means we are talking about the license, so there is no problem with that. I believe the phrase becomes correct: “… except with a license necessitated by the public interest issued by the competent authority in coordination with the ministry, in accordance with the relevant regulatory legislation.” Here, the phrase does not talk about barriers but about the license, meaning when issuing a license, it should comply with other legislations. So there is no harm in that. Thank you.

Honorable President:

So, does the council agree on this clause as amended?

(Agreed)

https://www.almajles.gov.ae/Pages/download.aspx?FileUrl=FncEparURL/f2675177-eb84-4677-9ab1-07fb554929b4.pdf

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Dr. Hisham Fawzi’s Participation in Recommendations on Emiratisation in the Government and Private Sectors in the UAE

H&Z Law — Mon, 03 Jun 2024 12:35:41 +0000

Recommendations on Emiratization in the Government and Private Sectors

Honorable / Musabah Saeed Al Ketbi (Committee Chair)

Addressing the wage gap, which constitutes a major obstacle to employing citizens in the private sector.
Developing incentivizing initiatives, financial and service facilities to encourage citizens to invest in medium and small projects, with these projects prioritized strategically in government policies.
Directing federal ministries and entities to include financial allocations in their annual budgets for implementing Emiratization policies, plans, and programs in coordination with the Ministry of Finance.
Mandating all federal government entities to integrate with the “Bayanati” system of the Federal Authority for Human Resources.
Reviewing the pension law and amending provisions related to benefits granted to employees in the private sector compared to the federal and local government sectors, aiming to bridge the gap in pension benefits between the two sectors.
Providing material and moral incentives to private sector establishments committed to Emiratization decisions.

Honorable President:

Are there any comments on these six recommendations?

Honorable / Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

There is no issue from the financial free zones as they are already subject to Emiratization and others. There are only two zones, one in Dubai (DIFC) and a new one in Abu Dhabi. The original problem is with the industrial free zones, so this matter needs a constitutional amendment to remove the word “financial” and subject all zones to federal jurisdiction.

Honorable President:

So, brothers, as the Honorable Advisor mentioned, instead of the word “amendment,” it should be “implementation” because this is subject to federal legislation, thus not accommodating citizens there. Does the council agree to replace “amendment” with “implementation”? Because the zones are already under federal authority…

Honorable / Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

The issue, Your Excellency, is that we have two zones, one financial and this is a federal matter, and the other industrial or non-financial, which is a local matter. Therefore, to issue recommendations for non-financial zones requires a constitutional amendment. So, if your concern is only about financial zones, there is no issue originally. The committee’s intent is regarding non-financial zones, which are a local matter, but we can phrase it as “taking necessary actions to subject all free zones to Emiratization policies and plans,” leaving the necessary actions in a general format, including constitutional amendment and so forth.

Honorable President:

What wording do you suggest, Honorable Advisor?

Honorable / Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

“Taking necessary actions to subject all free zones to Emiratization policies and plans.”

Honorable President:

What does the council think of this statement? This encompasses all, financial and non-financial zones, and you are interested in non-financial zones again, Honorable Advisor.

Honorable / Dr. Hisham Mohammed Fawzi (Legal Advisor to the Council):

“Taking necessary actions to subject all free zones to Emiratization policies and plans.”

Honorable President:

Does the council agree to this amendment?

(Agreed)

https://almajles.gov.ae/Pages/download.aspx?FileUrl=FncEparURL/4931b254-db04-40f0-819f-3a9419597cb7.pdf

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