Month: February 2021
RPA in UAE: The technology is here to stay, even post Covid-19!!
Midhun Menon
Phone:- +971 4 327 7775
Mobile:- +971 52 830 7998
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
It has been tough time for all businesses, irrespective of the size or the industry; there are multiple political instabilities, trade war threats, impending global recession, but none had the impact as the deadly pandemic COVID-19 had on the businesses. Although people are getting vaccinated now, there is still a lot of time till the world comes to an absolute normal. In the earlier time of uncertainties, companies would resort to job cuts as a primary line of defense. But nowadays companies are moving smart and are taking the aid of automation to help them sail through the difficult times.
The usage of RPA based solutions are boosted, thanks to companies working with a smaller workforce and most of the staff working from their home. The automated bots have helped companies, to quickly adapt to the change in business processes. The biggest advantage of RPA is that it reduces dependencies on their local or remote workforce. Be it any industry, RPA software bots can be trained and molded to suit their own processes. For e.g., Logistics companies can automate their cross-border and port-related paper works and approvals during these times, reducing the physical papers to the maximum. RPA can be used to regulate inventory movements between the warehouses.
From simple functionalities like copy, paste, RPA bots can self-learn to tackle complex business problems including checking on various rules and regulations. It is said that bots can do a work five to fifteen times faster compared to a human and adding to it the “zero error” output, makes RPA a go to tool for companies that need to perform high-volume tasks in a short period of time. Does that mean RPA can replace humans completely? I would say, with advanced AI and ML, in the future it is quite possible. But, for the moment, human intervention would be required for high-value tasks that require creativity.
I would say the time has come to adopt cutting-edge technologies like AI, RPA, and OCR or a combination of all three to drive your businesses and become less dependent on human-driven processes. The uncertainty that existed around automation has now completely gone and today, it is an effective tool to do your office chores swiftly and flawlessly. There is even work-from-home supported bots these days to aid such employees.
What RPA does is bringing efficiency, accuracy & assurance to these uncertain days; every business out there is weathering the tough pandemic conditions and I am sure RPA will play an important role In certain companies surviving and then flourishing when times return to normal.
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UAE-Israel Business Opportunities
Lavin Nalinababu, Business Consultancy
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
Email:- dubai@hlbhamt.com
UAE and Israel have recently joined hands to establish a friendly-business relationship offering more opportunities for both countries. Being in the top positions in terms of technology, education, infrastructure and being socially and economically advanced, they have proven their growth within a very short time after their independence. Both countries have numerous expatriates seeking shelter; they aim to provide a better life for their people.
UAE is one of the most advanced regions in the Middle East, promoting trade within and outside the country, also holding a leading position as a business and financial hub. Israel on the other hand is called the “Start-Up Nation”, which is known for its advancements in the field of technology and innovation with the highest per capita start-ups, R&D spending, tech unicorns and Nobel prizes and many more innovations that grabbed global attention.
On September 15, 2020, the leaders of both the countries signed the historic Abraham Accord at the White House, Washington, announcing their union to the world. The normalization of their relations has paved way for greater business opportunities for both the countries in many sectors.
The new relationship between the countries is believed to hit $4 billion in three years with the support of UAE-Israel Business Council. With the trade restrictions being lifted, as per the Abraham Accord, business connections will flourish, joint ventures will be made and economic cooperation will be nurtured. According to the council, the demand from Israel to trade with UAE is already on the rise.
A joint fund established by UAE, US and Israel(Abraham fund) to stimulate the private sector led investments across the two nations for better infrastructure, projects, for regional trade and to increase the energy security of $3 billion has been set. The peace treaty was confirmed by the UAE on 19th October, 2020 which normalises the border relations and the establishment of a full diplomatic relationship.
Areas for cooperation
The new arrangements between the two most dynamic economies are believed to bring in prosperity for both parties, as both of them have ‘highly complementary’ strengths which will benefit both the countries alike and will offer wide opportunities for business communities equally.
Technology
Israel has excelled in their technological aspects. By joining hands with the world class technology leader, it is for sure said to benefit UAE in all possible ways and this alliance will soon help to overpower the rest of the world with their technological advancements. Both countries will benefit from commercialization, finance and expanded trade opportunities.
Agriculture, Energy & Water
Both UAE and Israel stand among the strongest ecosystems for the development and deployment of innovative technologies in the fields of agriculture, desalination, water conservation, energy production, and renewables.
Finance, Logistics & Transportation
UAE being one of the leading commercial and transport hubs offers the unique opportunity for commercialization, development and financing of joint initiatives in which Israel is active.
Professional services
Israel and UAE have members in the fields of law, accounting, corporate services, finance, venture capital and business development who has extreme interest to expand into both the countries markets.
Medical & Biotech
Israel is a world leader in the life sciences, and home to 2,000 medical device, biotechnology, and health care technology providers, in addition to world class medical and research facilities. UAE on the other hand is said to have the most respected and advanced health care systems in the world.
Tourism & Hospitality
Israel and the UAE have breath taking attractions and are both thriving to excel in the tourism industries. The members are looking forward to benefit both sides with their expansion plans in the tourism and hospitality fields.
Collaborations between UAE & Israel
The union of the two countries will reflect in many changes that are yet to be witnessed, as both UAE and Israel have immigrants residing in the countries; the cultural integration is something they have in common. It will benefit them to understand the cultures more deeply and will help them come up with innovative ideas. Israeli’s are warm and friendly in nature. In addition to it, they have both men and women enjoying equal participation and have equal opportunities. Women are often seen at the executive positions as well. UAE is no different.
Trust is the base for any business for the Israelis. Both the countries will gain from the union. They have many more opportunities and investment options that can be opted for both their benefits. This collaboration will indeed be a road to success, opening up new and innovative doors of opportunities all through the way.
Some pointers to learn more about Israel and its Economy
Finance Aspects in Israel
The Ministry of Economy and Industry that deals with the promotion of foreign businesses have come up with a clear and stable long-term regulatory policy. The government and the Ministry of Economy and Industry have worked hand in hand to avoid any unnecessary barriers to facilitate the investment processes in Israel. This decision will have a positive impact on the promotion and success of foreign companies in Israel.
Banking
The banking procedures are different for each business. They offer services and have varying costs according to the type of business. For a foreign national to open a bank account, they must sign a confidentiality document that allows the bank to transfer the financial information to their home land and the account will be under the category of “foreign resident” to avoid any sort of money laundering.
Company types
There are three main types of business incorporation in respect to law and tax authorities, they are:
- Exempt dealer
- Licensed dealer/ Authorized dealer
- Limited Liability Company
The minimum wage in Israel is AED 32 per hour and the monthly working hours are 182 hours. According to the Jewish religion, the rest days allotted in the country are on Fridays and Saturdays, the same as UAE. Additional laws to preserve the personal life of the individuals are laid by each sector.
Exempt dealer
The exempt dealers are provided with an exemption from the VAT but all other taxes are applicable for them. These dealers need not collect VAT from their customers and are not allowed to issue tax invoices as well. The tax exemption ceiling as of 2017 is AED 104,312 per year which is AED 8700 per month. If the transaction limit exceeds the exemption ceiling then the dealer should pay the VAT only on the amount that has exceeded the limit. They should follow the obligations that are related to the small businesses. The exempt dealer should report VAT once a year, regarding the past years transaction. This is the cheapest form of incorporation.
Authorized dealer
An authorized dealer is registered to the tax authorities and is entitled to collect VAT from their customers. They file VAT reports and file VAT returns regularly. An authorized dealer’s transactions exceed the tax ceiling of AED 104,312 a year. They receive their file number at the time of incorporating their business from the VAT office. They are entitled to pay personal income taxes as well. It is similar to the form of calculation of employees’ income as specified by the Income Tax Ordinance.
Limited Liability Company
A limited liability company is an independent legal entity whose liabilities are limited to that of the company’s capital. The owners are considered as shareholders and they can withdraw a salary from the company like the rest of the employees. In order to establish an LLC a few one-time or fixed payments are required such as the company establishment fee, annual fee, attorney’s fee, and the payment of the accountant. Operating costs for an LLC are much more than that of an authorized dealer but will benefit the company in carrying out tax planning. The taxation if any will be done in the form of corporation tax after paying the owner’s salary. The corporation tax is 25% at present.
The collaboration of the two leading countries in the world is bound to create history. UAE and Israel have their own strengths which will become a joint force from now on. This will bring in more foreign investments to both the countries as people believe this union opens up doors for unending opportunities. The location, infrastructure and technological advancements of Israel will bring in prosperity to UAE. This joint venture has sought global attention and the investors are rushing in to the countries at a high pace. The future is bright and full of fortuity for Israel and UAE.
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Bookkeeping Services in Dubai
Vimal Kutty
Phone:- +971 4 327 7775
Mobile:- +971 56 147 0259
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Bookkeeping as the name suggests is the recording of day-to-day financial transactions and information. Bookkeeping is part of accounting which helps in retaining every transaction and information relating to the organization when necessary. There are numerous ways in which a bookkeeping service can help your business; bookkeeping is in fact mandatory for every organization to have a smooth flow of business.
The demand for outsourced bookkeeping services in Dubai is going to be higher than ever in the current Covid-19 pandemic situation. During this testing time, as many businesses are struggling to sustain themselves, outsourcing of bookkeeping services can be more common for small businesses to help them survive. Due to pandemic it is quite natural that the volume of transactions would be comparatively less and as such the businesses would be wanting the accounting firms to understand and charge less. As this is not the right time to expand your business, outsourcing of bookkeeping services in Dubai will help you to maintain your existing clients and divert your focus to the core function of business development.
Bookkeeping outsourcing has become very essential part of every business in the current situation. Following are the inevitable functions of a bookkeeper that has led to the high demand for outsourcing of bookkeeping services in Dubai during the pandemic:
Functions of a bookkeeper in UAE
A Bookkeeper helps in developing and maintaining the overall financial and management processes of the entity. A bookkeeper maintains the ledgers and records every financial transaction of the organization on a daily basis. Every transaction, be it income or expense, is recorded by the bookkeeper in the ledger.
- Recording of financial transactions on a daily basis
- Processing payments
- Organizing and conducting day-to-day banking activities
- Producing financial reports
- Reconciling bank statements
- Managing payroll
- Managing taxes
- Assisting during internal audits
Now that the functions of a bookkeeper are stated, it is important to know how it is beneficial for a business entity. Why is it important to maintain your book of accounts? Well, as said earlier, bookkeeping is the process of recording information and transaction.
These records of transactions are necessary to understand the position of the business. Bookkeeping services keep you more vigilant about the financial position of the organization. It helps in reducing the costs, and the bookkeeper will be extra cautious about avoiding mistakes in the book of accounts. They will keep you alert on fees, taxes, penalties and even warn you on mismanagement and waste of supplies and inventories.
How does outsourcing of bookkeeping services in UAE help your business?
Businesses of every kind irrespective of its size requires the service of bookkeeping as every organization in the UAE are mandatorily required to maintain proper books of accounts. Usually, people employ bookkeepers but now most of the businesses prefer outsourcing of such services. Outsourcing will be helpful in many ways.
It is not just an individual you hire to outsource, but a whole team of professionally qualified and experienced personals. Businesses need not worry about these processes once it’s in the hands of professionals. They can concentrate more on their core activities as well.
As far as the technology is concerned, the outsourced accounting company will ensure to provide the best and advanced technology available to calculate and record your accounts. The outsourcer will definitely bring in accurate data and will be careful of the data as well.
Why HLB HAMT?
HLB HAMT is one of the leading bookkeeping service providers in Dubai and in the whole region of UAE. HLB HAMT offers customized Accounting & Business Advisory services entailing paramount quality account and financial record maintenance and customer support. It helps you to significantly reduce the administrative burden and exuberant financial costs incurred. This enables HLB’s partners to channelize and streamline their efforts to concentrate on core risk areas and improve company performance with increased flexibility to respond to growing business requirements.
HLB’s Strengths in Accounting Service:
- Experienced professional team of accountants
- Exposures in different industries and Software
- Clearly defined logistics and rules of engagement
- Knowledge of latest developments in Accounting, Tax & IFRS frameworks
- Strict deadlines for the delivery of our services
- Quality assurance: monitoring and improvement
- Personal attention to clients
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A Comparison of Maternity Leaves in GCC Countries
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The Gulf Cooperation’s Council (GCC) is a political and economic union of Arab states bordering the Arabian Gulf. It was established in 1981 and its 6 members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
Maternity Leaves in GCC Countries
Maternity leave is a leave of absence for an expectant or new mother for the birth and care of the baby.
GCC Countries’ seemingly generous maternity law protects and gives equal opportunities to a female worker in a private sector. All female workers have the privilege of getting paid maternity leaves if they are working in any of the GCC country.
If you are an expectant mom, you should know about your rights and legal entitlements in GCC Countries. Each GCC Law states that maternity leaves will be a paid leave for certain period and after exhaustion of paid maternity leaves if the female worker wants, she can apply for unpaid leave as well.
Here is the summary of paid maternity leave details in GCC countries:
Please see the summary of unpaid maternity leave policy after exhaustion of paid maternity leave
Please see the details of extra breaks eligible post-delivery
GCC countries are quite liberal when it comes to maternity leaves, which is an encouraging factor for women to continue their job even after having a baby. Apart from the leaves, the additional breaks are also a captivating feature.
For a comprehensive understanding of maternity leave policies in GCC countries, please refer to our articles relating to each country.
- UAE Leave policy
- KSA Leave policy
- Oman Leave policy
- Qatar Leave policy
- Bahrain Leave policy
- Kuwait Leave policy
Payroll Process
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward. HLB HAMT provides payroll in UAE, Bahrain, Qatar, Saudi Arabia, Kuwait and Oman.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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A Comparative Study on GCC Gratuity
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The Gulf Cooperation’s Council (GCC) is a political and economic union of Arab states bordering the Arabian Gulf. It was established in 1981 and its 6 members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
Gratuity/ End of Service benefit in GCC
Gratuity is a monetary payment eligible to an employee as a lumpsum at the end of his tenure. Gratuity payment is a liability to the employer which accrues as the employee service period progresses.
In accordance with GCC country’s labor law, all expatriate workers are entitled for gratuity or severance Pay. Each GCC country has their own policies and procedure in settling the worker’s gratuity payment. This article helps you to understand the comparison of gratuity payment between the GCC countries.
When does gratuity accrue and how is it differentiated between the GCC countries?
Gratuity accrues from the first day of employment up to the last working day. But the accrual criteria and policies are different from one country to another. Below table will brief how gratuity accrues in GCC countries:
What is the base amount considered while calculating gratuity amount, across GCC countries?
As specified in GCC countries labor law, the base amount differs based on the fixed component. However, the laws clearly state that the base amount for calculating gratuity is based on either the last drawn basic salary or last drawn total fixed salary. Here, the table will give the brief explanation on the base amount:
How is Gratuity calculated during final settlement?
Each country has its own policy relating to Gratuity payment. Some countries are considering type of separation and type of contract for calculating Gratuity during final settlement. Below table shows the comparison of Gratuity payment criteria across each GCC country:
Even though the criteria for calculating gratuity varies from one GCC country to another, all these countries ensure that their employees get paid a good amount as gratuity at the end of their tenure. This amount acts as a huge relief for the employees and they should be aware of the gratuity payment terms and criteria; whether they are eligible, how it is calculated, etc.
For a comprehensive understanding of gratuity accrual and settlement in GCC countries, please refer to our articles relating to each country.
Payroll Process
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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Handling Conflict of Interests in Engagements
Ankitha Krishnan, Auditor Internal Audit & Risk Management
Phone:- +971 4 327 7775
Mobile:- +971 55 807 4568
Email:- dubai@hlbhamt.com
While conducting engagements, it is imperative to avoid any kind of conflict of interest that can hamper our objectivity. A conflict of interest can arise in client engagements as well as any situations in which we enter into business relationships. Professional standards require us to take reasonable steps to identify circumstances that could pose a conflict of interest and apply appropriate safeguards to eliminate threats to reduce them to an acceptable level.
There are various types of conflicts of interest. Let us look at each one of them in detail.
- Transactional conflicts:- Potential conflicts that arise from client engagements involving the sale or purchase of a business and our relationships with the counterparties are termed as transactional conflicts. For example, if a firm is assisting a buyer in buy-side due diligence and the target /seller is also a client of the firm, a transactional conflict prevails.
- Relational conflicts:- Potential conflicts that arise from client engagements involving counterparties that have a pre-existing relationship are termed as relational conflicts. For example, in a joint venture between companies X and Y, Co. X approaches the advisory firm to provide tax advice related to JV. Later, Co. Y also approaches for similar service related to JV. Here, JV is the pre-existing relation between the counterparties.
- Advocacy conflicts:- Potential conflicts that arise from client engagements involving legal or other disputes and our relationships with the counterparties are termed as advocacy conflicts. For example, preparing valuations of assets for two parties who are in an adversarial position with respect to the assets.
- Personal conflicts:- Potential conflicts that arise from personal relationships and/or financial interests of the firm’s staff or partners with counterparties to the firm’s business relationship. For example, advising a client to invest in a business in which, the spouse of a member of the team has a financial interest.
- Competitive situations:- Potential conflicts that arise from our relationships with parties who are in competition with one another. For example, representing or advising two clients at the same time who are competing to acquire the same target where our advice might be relevant to both parties.
The first step in accepting any engagement is to look for potential conflict of interest among the parties involved. This can be achieved through a search in internal databases regarding prior engagements done, existing business relationships, etc. Once a conflict of interest has been identified, appropriate safeguards are to be taken. Examples of safeguards include:
- Using separate engagement teams to maintain confidentiality (ring-fencing).
- Using separate areas (geographical ring-fencing) in the office that act as a physical and electronic barrier to the passing of confidential information.
- Disclosure, acknowledgment, and consent from the parties involved in engagements.
In today’s globalized environment, we should identify and manage potential conflicts of interest as quickly and effectively as possible. By taking the above measures, we can be confident that risk levels will be reduced to the minimum.
Conflicts of interest must be managed appropriately and HLB HAMT understands that. We ensure that the issue is addressed at the correct time and it doesn’t escalate to a serious level. We have the right strategies in place to manage conflicts, be it transactional, relational or any other form of conflict.
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The Relevance of Data Analytics in External Audit UAE
Sumesh Krishna, Partner
Phone:- +971 4 327 7775
Mobile:- +971 50 749 0576
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
It has been a decade since banks, insurance companies, and retail sectors, large corporations started using data mining with technology companies’ help for analysis, design, and model.
The larger audit firms, especially started the data analytics usage in increasing audit quality in the past decade. Lately, large firms and mid-tier firms have changed the audit approach and methodology by adopting data analytics for 100% verification on smaller audits.
The established concepts on audit and its verification regarding the way it is regulated and executed are now challenged by data analytics. The evolution of audit testing started with 100% of transactions being tested in early days, then risk analysis and control testing were introduced with the help of materiality later, and now it is the time of data analytics as it is giving a big picture to the auditors on what is happening with the clients’ accounts.
Due to the results and increased adaptation and evident results; even though it is a new area for auditors, many smaller firms are starting to explore data analytics in audits. But the challenge for smaller firms rather than the software cost or availability, is the skills required to do the data analytics, especially audit verifications.
Data analytics in public accounting practice is not limited to external audit engagements and can be used in various assurance engagements. The selection or developing data analytics tools is critical; then we can apply to complete data sets to validate and analyze all the transactions to draw conclusions and decide on the next steps of verifications.
The auditors will perform more productive risk assessments and internal control procedure testing to decide the substantive test with data analytics.
The Visualization of data is also essential as after analyzing the data, it should be visualized for better understanding by using bar and pie charts, cluster, and other diagrams. There are many connector platforms available to perform a proper visualization like Microsoft Power BI and Tableau.
To establish a proper data analytics procedure for external audits; we need to address many operational issues, such as
- Onboarding right talent and expertise
- Extracting good quality evidence from the client system
- Accessing to the client systems and related confidentiality issues
- Cleaning of data and deciding the type of analysis to be performed.
- Lack of regulatory guidance.
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A Comparison of Sick leaves in GCC Countries
HLB UAE Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
The Gulf Cooperation’s Council (GCC) is a political and economic union of Arab states bordering the Arabian gulf. It was established in 1981 and its 6 members are the United Arab Emirates, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.
Sick leave is permitted absence from work because of illness and its different from paid vacation leave, since sickness deals with health matters. Each GCC country has domestic sick leave and sickness benefits based on the relevant articles mentioned in the labour law.
In some GCC countries, an employee is not entitled for sick leave during his/ her probationary period. To understand the sick leaves policy and entitlement, refer to the below table:
Employees do get sick once in a while, which compels them to take the day/ days off from work and take rest. Hence, sick leave policies are a must for every country.
For a comprehensive understanding of the leave policies of different GCC countries, please refer to our articles relating to each country.
- UAE Leave policy
- KSA Leave policy
- Oman Leave policy
- Qatar Leave policy
- Bahrain Leave policy
- Kuwait Leave policy
Payroll Process
The process of payroll is little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours in every project, ensuring our clients get refined consulting services to take your business forward.
To know more about our payroll process, click here
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
Did you find the blog informative?
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Factors to Consider while Buying Property in Dubai, UAE
Lavin Nalinababu, Business Consultancy
Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Looking forward to buying a property in Dubai? Well, now is the time to make a move on your dream. While the pandemic hit hard across the world, many sectors have had a nightmare for the past couple of months and have been thriving to find a ray of hope for things to be back to normal. As for the real estate sector, even as the prices of properties went down crashing it has indeed benefited them. People have been engaging themselves in land purchases even during this tough time. If you are planning to buy a property in Dubai then here is everything you need to know.
Every land purchase in the UAE is operated through and within the control of the Dubai Land Department (DLD), which was founded in May 1960. The goal of the DLD is to become the most prominent real estate sector in the Middle East and the world. The DLD being one of the departments of the Dubai Government looks into the registration and documentation of all the real estate transactions on behalf of the Government of Dubai.
The Real Estate Regulatory Agency (RERA) acts as a regulatory body of the Dubai Land Department (DLD). RERA has introduced a legislation which requires the developers to enter the data of every transaction made to them in a registered escrow account to protect off-plan property buyers. This escrow account can only be retrieved once the project reaches a certain stage of completion. Before making an off-plan property purchase, one must make sure that the developer, Real Estate Project, and the Escrow account are registered with the DLD and RERA.
Every legal aspect related to the purchase of property in Dubai is stated in the Real Estate Law No. 7 of 2006: Land Registration Law in the Emirate.
Present market condition in UAE
The year of 2020 saw a moderate fall in the residential property prices in Dubai with an overall decline of more than 20% ever since the third quarter of 2019. With the rapid change in the real estate market, Dubai’s property market has been the most unstable in the world.
As the effects and the spread of the pandemic still prevail, the fall in the housing prices in Dubai are expected to continue. Many factors determine the price fall, mainly because of the huge supply and low demand due to the pandemic. Other factors such as the Federal Mortgage Cap which was introduced in 2013 has decreased the swiftness in the residential value appreciation in Dubai and Abu Dhabi.
The hike in the property registration fees to 4% from 2% has also affected the demand. In addition, the implementation of the Value Added Tax (VAT) in 2018 is yet another factor. The VAT is only applicable for commercial property sales after three years of the project’s completion. Any sales which take place within three years of completion are exempted from VAT.
The past few years from 2017 to 2019 have been favourable for UAE, but as the pandemic hit by the end of 2019, it has had a huge impact on the economy and especially on the crude oil prices. The IMF recently demoted its 2020 economic forecast for UAE to 6.6% which was the worst the country has witnessed in a very long time.
Right time to buy a property in UAE
If one is considering the cost of the land alone, the best time to invest is now. But, the other factors such as taxes and registration fees are at its peak due to the pandemic of COVID- 19. It is important to consider your financial status before making a huge investment. It may be difficult to pay for the down payments without proper savings. One other factor to be considered while purchasing a property in UAE is to have a strong credit score.
The market rate may differ time to time and one must be aware of the frequent changes while making a property purchase.
Legal steps to buying a property in Dubai
Dubai property market and its functioning are quite different when compared to other countries, which is why it is always a safe choice to find a property advisor. A good Dubai real estate agent will help and guide you through out the process of purchase. The processes involved in buying a property in Dubai, be it for a home or a real estate for investment is pretty smooth and simple.
There are four basic legal steps involved in purchasing a property in Dubai in cash:
- BUYER AND SELLER AGREEMENT: The first step to buying a property is to negotiate your way to the sale. You can either do it on your own or enlist the task to a real estate agent.It is mandatory to establish an agreement between the buyer and the seller. Every term of sale and negotiation made must be listed in the agreement in order to avoid any confusion in the future. Both parties should be on the same page over the price, mode of payment and other important decisions.
- SIGNING THE AGREEMENT OF SALE: The next step is to sign the sale agreement that has been prepared. The sale agreement is also called the Memorandum of Understanding (MOU).The MOU is called from F which is one of the real estate forms in Dubai provided by RERA. It is available in the official website of the Dubai Land Development (DLD).
The form F must be signed by both parties, the buyer and the seller in front of a witness at the Registration Trustee office. A standard security deposit of 10% must be paid by the buyer to the Registration Trustee, which will be refunded once the property transfer is finalised.
All the above steps will be taken care by the real estate agent or the property adviser.
- APPLYING FOR A NO OBJECTION CERTIFICATE (NOC): Obtaining the NOC or the “No Objection Certificate” is the next step involved in the property purchase. Both the buyer and the seller must meet at the office of the developer to apply for the NOC. The NOC will be issued by the developer for a fee, confirming that there are no outstanding service charges on the property.
- EFFECTING THE TRANSFER OF OWNERSHIP WITH DUBAI LAND DEPARTMENT: The final legal step of buying a property in Dubai is transferring the ownership. The parties should be present at the Dubai Land Development office with the following documents to complete the process.
- A manager’s cheque for the property price payable to the seller
- The original identification documents of buyer and seller (Emirates ID, passport and visa)
- The original NOC issued by the developer
- Signed Contract F (MOU)
Once all the documents are verified, a new title deed will be issued in your name that confirms your ownership of the property.
Fee Details
All the fee details regarding the purchase of property in Dubai are listed below:
- NOC fees: The NOC fee may range between AED 500 and AED 5000 and must be paid to the developer by the seller. Some developers may also impose a refundable deposit on the buyer which will only be refunded once the buyer presents the new title deed and when all the records are updated.
- Real Estate Agent’s commission: 2% of the purchase price
- Transfer fees: 4% of the purchase price with an additional amount paid towards the admin fee. This is paid to the DLD and currently does not exceed AED 5000.
- Mortgage registration fees: (if applicable) 0.25% of the registered loan amount and is paid to the DLD.
Buyers should account their pro-rata share in advance as developers may ask for their annual service charges to be paid in advance.
How long do the legal steps of buying a property in Dubai usually take?
The process of buying a house in Dubai can take up to two to ten weeks. The process may take longer if the property is already mortgaged or being purchased on mortgage. An average property transaction may take up to 30 days from the date of the agreement signed.
Property buying on mortgage
It is mandatory to get pre-approval on a mortgage before signing the agreement if you are purchasing the property on a mortgage. An approval on the mortgage from the DLD is also required before applying for the NOC.
Can non-resident foreigners buy properties in Dubai?
The freehold property in the Emirate is open for sale to non-residents. Anyone from any nationality can purchase the freehold land in Dubai as per the acknowledgment of His Highness Ruler of the Emirate of Dubai.
Some of the prominent freehold districts in Dubai include:
- Arabian Ranches
- Palm Jumeirah
- Dubai Marina
- Downtown Dubai
Other than the designated areas, there are also other rules to which the foreign property owners must adhere to.
The processes vary for the purchase of a commercial property or off-plan properties in Dubai. Real estate investment is a huge commitment and if not planned properly, it can for sure build a toll on you. The procedures may sound simple but it is always a wise choice to have a trusted ally; a property advisor or a real estate agent. They can walk you through the process with ease and help you in making fine negotiations for your purchase.
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Oman Introduces New Employment Security System
HLB Oman Payroll Team
Phone:- +971 4 327 7775
Mobile:- +971 50 205 9540
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com
Oman has recently published a new law regarding compulsory insurance for Omani nationals in situations where employment is terminated for purely business reasons. All Omani nationals working in both public sector and private sector employees are required to be insured under the new law.
Oman’s Ministry of Justice and Legal Affairs has published Royal Decree 82/2020, which provides for the introduction of a new Employment Security System that is essentially an unemployment insurance system for Omani nationals whose jobs have been terminated, by providing a temporary source of income and financial aid as they seek new roles. Payments for the contribution are due by the end of the month by public sector employers and by the 15th of the following month by private sector employers.
The requirement to pay an additional monthly contribution are effective from 1 January 2021. Companies needs to transfer their additional contribution along with the existing PASI contribution.
After adding employment security system contribution, total monthly contribution is 20.5% of the employee’s Gross Salary, of which 12.5% (includes 1% for occupational injuries and disease and another 1% for newly introduced Employment Security System) is payable by the employer and 8% % (includes 1% for newly introduced Employment Security System) is payable by the employee. The employee Pension contribution is deducted from the monthly wages and the employer needs to pay this amount along with the employer contribution to the Pension Authority.
Payroll Process in Oman
The process of payroll is a little complicated and time-consuming; hence it is always recommended to outsource your company’s payroll function. Outsourcing payroll will ensure the assistance of a team of trained payroll professionals and it frees up the time of the organization, helping them focus on other projects that add value to their business.
One should be extra vigilant while selecting their payroll provider, as payroll data is highly sensitive, and one should opt for a provider that can ensure high levels of data security.
As a leading payroll outsourcing company in Oman, HLB HAMT can help solve your payroll complexities through customized strategies. We take care of our clients’ entire payroll cycle that includes preparation of payroll reports, processing salary payment with WPS compliance, accrual management including Gratuity, pension funds, an online portal for accessing payslips, and many more. Our leadership team spends the necessary hours on every project, ensuring our clients get refined consulting services to take your business forward.
Disclaimer:
Whilst every effort has been made to ensure the accuracy of this information, HLB HAMT will not accept any liability arising out of errors or omissions. Please note that this blog is not all-inclusive. Our guidance is designed only to give general information on the issues/topics covered. It is subjected to change and not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion.
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