Middle East Legal News: January 31, 2025

This edition focuses on significant legal developments in Egypt and the Gulf States, highlighting recent changes in legislation, upcoming events, and key trends shaping the legal landscape.

Recent Developments

• Healthcare Sector Reforms in the UAE: The UAE's healthcare sector is undergoing transformative changes due to new foreign ownership laws. These reforms are expected to attract international investment and enhance healthcare infrastructure, marking a pivotal moment for the industry in 20252.
• Changes in Employment Laws in Abu Dhabi: New regulations allowing companies to hire remote workers have been introduced, reflecting the evolving nature of work. Effective from April 1, 2025, these laws redefine "employee" to include remote and part-time roles, requiring employers to provide necessary technical equipment for remote work5.
• International Arbitration Updates: The Middle East continues to solidify its position as a hub for international arbitration. Notable developments include the establishment of the Abu Dhabi International Arbitration Centre and updates to arbitration rules in Qatar aimed at enhancing efficiency and accessibility3.

Upcoming Events

• ALB Middle East In-House Legal Summit 2025: Scheduled for October 16, 2025, in Dubai, this summit will gather corporate counsel and legal professionals to discuss emerging trends and network with industry leaders. It promises insights into the latest legal developments across the region1.

Key Insights

• Corporate Tax Rate Increase in UAE: Starting January 1, 2025, the UAE will implement a corporate tax rate of 15% for multinationals. This change is part of broader fiscal reforms aimed at diversifying the economy and increasing revenue streams5.
• Impact of Legislative Changes on Investment: The recent amendments in laws governing foreign ownership and employment are expected to significantly influence investment strategies within the Gulf States, particularly in sectors like healthcare and technology25.

Recent updates on foreign ownership laws in the Gulf Cooperation Council (GCC) countries as of January 2025 indicate significant reforms aimed at enhancing investment opportunities. Here are the key changes:

Saudi Arabia

• New Investment Law: Set to take effect in February 2025, this law will replace the existing Foreign Investment Law and eliminate the requirement for a Foreign Investment License. Instead, investors will register directly with the Ministry of Investment, streamlining the process significantly. The law guarantees protections against expropriation and allows foreign investors to operate in any sector not listed as "Excluded Activities," which includes certain strategic sectors like military and security services, real estate in Mecca and Medina, and others46.

United Arab Emirates (UAE)

• Continued Liberalization: The UAE maintains its policy allowing 100% foreign ownership in over 1,000 business activities since June 2021. This deregulation has been pivotal in attracting foreign investment, particularly in sectors outside of strategic industries like banking and military services. The UAE government continues to promote entrepreneurship through these reforms23.

Qatar

• Foreign Investment Law: Qatar allows up to 100% foreign ownership in various sectors, with specific areas designated for foreign investment. The government has streamlined application processes to facilitate easier entry for foreign investors, reinforcing its commitment to enhancing the business environment3.

Kuwait

• Negative List Approach: Kuwait's approach permits 100% foreign ownership in sectors not included in its Negative List, which currently restricts investment in ten sectors. This strategy aims to attract foreign capital while protecting local industries3.

Bahrain

• Real Estate Ownership Reforms: Bahrain has introduced measures that allow foreigners to own property in designated areas, further encouraging investment in the real estate sector3.

These developments across the GCC reflect a concerted effort to create a more open and attractive investment climate, aligning with broader economic diversification goals within the region.