Business Laws of the United Arab Emirates 2011 Edition Akin Gump Strauss Hauer & Feld LLP ForCustomerAssistanceCall1-800-328-4880 Mat #40849718 © 2011 Thomson Reuters This publication was created to provide you with accurate and authoritative in- formation concerning the subject matter covered; however, this publication was not necessarily prepared by persons licensed to practice law in a particular jurisdiction. The publisher is not engaged in rendering legal or other profes- sional advice and this publication is not a substitute for the advice of an attorney. If you require legal or other expert advice, you should seek the ser- vicesofacompetentattorneyorotherprofessional. ISBN: 978-0-314-60097-4 About the Firm Recognized for its sophisticated clients, capabilities and outstanding professionals, Akin Gump Strauss Hauer & Feld LLP is a leading global law (cid:1)rm dedicated to providing innova- tive legal services and business solutions to individuals and institutions. Founded in 1945, with the guiding vision that com- mitment, excellence and integrity would drive its success, the (cid:1)rm focuses on building lasting and mutually bene(cid:1)cial relation- ships with our clients. Today, Akin Gump is one of the world’s largest law (cid:1)rms, with more than 800 lawyers in 13 o(cid:2)ces. Akin Gump has been advising clients in the Middle East for decades and opened its Abu Dhabi o(cid:2)ce in October of 2008. The Abu Dhabi o(cid:2)ce adds considerable depth to Akin Gump’s international footprint, expanding to 13 the number of o(cid:2)ces we have around the world. The o(cid:2)ce is fully integrated with all of the (cid:1)rm’s global o(cid:2)ces. Currently, the Abu Dhabi o(cid:2)ce consists of 3 partners and 6 associates. Akin Gump lawyers o(cid:3)er clients e(cid:2)cient service, strategic planning and key counseling. Akin Gump is dedicated to teaming with clients as innovative business and legal advisors, always with an eye toward the short and long–term goals of their business. Our lawyers’ in–depth knowledge of various industries and familiarity with the relevant players enable them to provide strategic legal and business advice on a wide range of issues. Akin Gump has a full complement of lawyers with signi(cid:1)cant domestic and international experience to support its clients with outbound and inbound investment growth strategies, (cid:1)nancing needs, public policy and trade challenges, intellectual property protection needs, as well as industry–speci(cid:1)c transaction, dispute or project considerations. Akin Gump’s lawyers work as a team and have a collegial spirit that distinguishes its approach to global coordination of its work on behalf of clients in every location. Akin Gump uses a fully integrated, one (cid:1)rm approach and there is a very close collaboration between its o(cid:2)ces. Akin Gump’s international o(cid:2)ces are sta(cid:3)ed with experienced international and local lawyers who have access to other areas of specialist expertise in the United States. iii About the Contributors The following lawyers from Akin Gump provided their profes- sional expertise and acted as chapter authors for this title: Kamil Gérard Ahmed and Dinmukhamed T. Eshanov (Chapter 1 — Constitutional Law of the U.A.E.) Benjamin Stuart Ewing (Chapter 2 — Corporations, Partner- ships, and Other Business Entities) Benjamin Stuart Ewing (Chapter 3 — Securities and Capital Markets) Benjamin Stuart Ewing (Chapter 4 — Financial Institutions) Jordan Cowman, Ausra Laurusaite-Kromelis and Dianne E. Carlson (Chapter 5 — Labor and Employment Laws) Jason Gelman and J.R. England (Chapter 6 — Real Property) Mohammad Vakil (Chapter 7 — Insurance) David C. Lee (Chapter 8 — Intellectual Property Law) Benjamin Stuart Ewing (Chapter 9 — Environmental Law) Mohammad Vakil (Chapter 10 — Litigation in the U.A.E.) Mohammad Vakil (Chapter 11 — Bankruptcy) Shawn Davis and Kamil Ahmed (Chapter 12 — Oil and Gas Law) Shari L. Silverman and Kamil Gérard Ahmed (Chapter 13 — Other Matters) In addition, Natasha Kohne, Chadi Salloum, Elisabeth Cap- puyns, Barbara Niederko(cid:4)er, Kameron Averitt, Eddy Blanton, Richard Gadhia, Adam Hilkeman, Jenny Rajkowski and Kinga Bernath provided invaluable support for and review of this publication. v Acknowledgment Of particular utility were resources and translations from the following entities: the U.A.E. Ministry of Economy, the U.A.E. Ministry of Labor, the U.A.E. Ministry of Water and Environ- ment, the U.A.E. Ministry of Justice, the U.A.E. Ministry of Health, the U.A.E Cabinet, the U.A.E. Central Bank, the Emir- ates Securities and Commodities Authority, the U.A.E. Telecom- munications Regulatory Authority, the Abu Dhabi Chamber of Commerce and Industry, the Abu Dhabi Department of Munici- pal A(cid:3)airs, the Abu Dhabi Environment Agency, the Abu Dhabi Health Authority, the Dubai Land Department, the Dubai Real Estate Regulatory Agency, the Dubai International Financial Centre, the Dubai International Arbitration Center, the Egyptian Center for Intellectual Property and Information Technology, LexGulf Publishers Ltd., Gulf O(cid:2)ce Services Bureau Legal Translations and legal translations from the A(cid:2)nitext UAE Legislation Online library. vii Preface The U.A.E. represents a unique business environment that brings together disparate legal, ethnic and religious cultures to form a cohesive, robust market–based economy. It is from this di- versity that the citizens and residents of the U.A.E. have drawn the wealth of experience necessary to transform this once hydrocarbon–reliant economy into one of the world’s emerging economic powerhouses and a center for regional trade, (cid:1)nance and entertainment. During these last years of rapid transforma- tion, the country has seen radical changes to its infrastructure, population and economy. Now, more than ever, as multinational companies turn their attention to the region, it is essential that they familiarize themselves with the underpinnings of the U.A.E. and its legal framework. Business Laws of the United Arab Emirates encompasses the major aspects of the U.A.E.’s legal system and gives the reader a detailed overview about the U.A.E. laws relevant to conducting business in the U.A.E., in particular by multinational corpora- tions and investors. In writing this book, we employed a number of sources for the laws we have herein summarized and analyzed. Of particular utility were resources and translations from the following entities: the U.A.E. Ministry of Economy, the U.A.E. Ministry of Labor, the U.A.E. Ministry of Water and Environment, the U.A.E. Ministry of Justice, the U.A.E. Ministry of Health, the U.A.E. Central Bank, the Emirates Securities and Commodities Author- ity, the U.A.E. Telecommunications Regulatory Authority, the Abu Dhabi Chamber of Commerce and Industry, the Abu Dhabi Department of Municipal A(cid:3)airs, the Abu Dhabi Environment Agency,theAbuDhabiHealthAuthority,theDubaiLandDepart- ment, the Dubai Real Estate Regulatory Agency, the Dubai International Financial Centre, the Dubai International Arbitra- tion Center, the Egyptian Center for Intellectual Property and Information Technology, LexGulf Publishers Ltd., Gulf O(cid:2)ce Services Bureau Legal Translations and legal translations from A(cid:2)nitext. This publication is intended as an introduction to the issues outlined herein and is not intended in any way to be taken as legal advice. No statement contained herein should be relied upon as a legal interpretation or as legal advice. Every situation presents unique facts and subtle variations in application to the ix Business Laws of the United Arab Emirates law. In addition, the laws and regulations described herein, and the application thereof, are subject to change on a regular basis. Thus, it is always best to consult an attorney knowledgeable in this area of law concerning any situation or issues the reader may be facing or an action the reader may be considering. Akin Gump Strauss Hauer & Feld LLP December 2009 x