Tuesday, August 01, 2006

We'll get there in the end

It was inevitable that the unprecedented development we're seeing in Dubai would charge ahead of regulations and laws. Playing catch-up isn't unique to this area - for example all governments are trying to write laws to deal with new technology such as the internet.

We're still working in the old laissez faire way and while it was all low-key and small we got away with it. But not any more. Now we're negotiating Free Trade Agreements, WTO looms large, we're on the international stage, particularly as Brand Dubai, in a big way.

There's an urgent need for legislation to catch-up with the new reality.

The new Property Law was a good start, in spite of it needing a lot more work. Now Emirates Today reports two new prospective changes, in company law and vehicle insurance. Both very good, very welcome moves.

Companies may not need local sponsor to operate

Foreigners may soon be able to open a business in the UAE without the sponsorship of a UAE national if a new draft of the commercial companies law comes into affect.

The draft deletes the provision in the current law that requires foreign companies operating outside of a free zone to partner with a UAE national who holds 51 per cent of the company – paving the way for much greater foreign investment in the country.

Good drivers will benefit

Motorists with good safety records are expected to benefit from a decision taken by the Ministry of Economy and Planning to amend some regulations regarding car insurance, a top industry executive said yesterday.

Under the new rules motorists will be given the option of having a named driver policy, said Omer Hassan Elamin, Chairman of the Insurance Business Group and a member of the legal committee of the Emirates Insurance Association, which collaborated with the ministry on the amendments.

At present, insurance policies focus on the car rather than the driver, which means that anyone with a licence can drive an insured car that they do not own and still have the right to file a claim if they cause an accident.

Elamin said that the new option will mean cars will not be covered if they are driven by anyone else but the poli cy-holder. However, drivers with good records are expected to benefit from the new rules, said Elamin.

Many more legislative updates are needed in many more areas. Let's hope they're not long coming.

Emirates Today

1 comment:

nzm said...

It's all good, although I think that the minimum limit of 500,000 dirhams that they are looking at as a qualifier for starting a business here is a bit too much - especially for the companies who want to start off small and grow bigger.

And it concerns me that there seems to be a sliding rule when it comes to deciding if Nationals should be involved and at what percentage.

It'll come down to wastapower again!

Btw - if you want to know how to link to Emirates Today articles, email me on: matdxb (@) freenet.de - I hardly ever check the hotmail account now!