< Previous10 Vol. 23/06, June 2022 The proposed regulations were posted for a 30-day public consultation period with the deadline for providing comments ending on 4 May 2022. What are the main amendments? Main proposed amendments include consolidating and expanding the defi ni- tions of Qualifying Applicant and Qualifying Purpose and rightfully dis-applying certain provisions of the DIFC Companies Law to serve the purpose of some structuring mechanisms particularly for structured fi nancing and crowdfunding. Why does it matter? The proposed amendments come as a much-needed development especially in the context of the fast and healthy competition between peers in both the country and the region. It reinforces the position of the UAE in general, and the DIFC, in particular as a leading innovation hub regionally and globally. AB ONLINE S OCIAL AND DIGITALS U B S CRIBE: VIDEO: How did Dubai’s property market perform in May 2022? Compared to May 2021, transaction figures rose 51.5% in terms of sales vol- ume, and 65.4% in terms of sales value STORY Female gamers set to push MENA industry past $5bn by 2025: report The massive growth projected the region is seen as stemming from the rising consum- er influx from underappreciated cohorts COMMENT qWe need to breed and promote a professional culture of paying on time” Justin McGuire of DMCG Global, voices his opinion to end the late payment culture to support startups and SMEs in the UAE ArabianBusiness THE EXPLAINER Aviation Structures, Crowdfunding Structures and Structured Financing remain on the list. Who is included in the DIFC Registered Entity? The proposed amendments introduce the DIFC Registered Entity, its Affi liates, Shareholders and Ultimate Benefi cial Owners, and Family Operated Businesses with suffi cient substance in the UAE. It will also include DIFC registered retail entities, a positive update for retail and hospitality sectors which hold a signifi cant impact on the Centre. However, Prescribed Companies and Non Profi t Incorporated Organisations are excluded. How does it affect crowdfunding? The amendments take into account the functionality of crowdfunding entities, “typically seeking investment from a wide base of minority investors”. The proposed amendments, in this context, refl ect the operational side of such PCs into the legal side, therefore enabling them to function properly according to their purpose. Structure fi nancing PCs, where applicable, shall “not be regarded as falling within the defi nition of a Public Company” and shall also be exempted from the prohibition in Article 42, according to the proposed amendments. A closer look at the proposed amendments to the DIFC Prescribed Company Regulations Bassem Daher, partner at Galadari Advocates and Legal Consultants, a Dubai-based law firm, discusses DIFC’s recently issued consultation paper where it proposes to amend the DIFC Prescribed Company Regulations u Consultation Paper No. 2 proposes amendments to the Prescribed Company Regulations 2019 Upfrontarabianbusiness.com 11 / SPOTLIGHT I n the last four years, we have all witnessed the signif- icant progress of 5G technology in the region. The technology has accelerated the growth of the Middle East’s digital economy, and it was 5G technologies and connectivity that helped us overcome the challenges brought by Covid-19. GCC countries are among the first to deploy commer- cial 5G networks globally, which has played a critical role in the fight against the pandemic. Fixed Wireless Access (FWA) enable people to get home broadband service quickly; for example, Kuwait’s local banks could take mobile ATMs to people’s homes during lockdown; in Bahrain and Saudi Arabia’s borders, 5G enabled broadband-connected PCR test centers to check people’s identities and recorded test results in real-time. The pandemic made us accustomed to spending more time at home, working, studying, and entertaining, which demanded much higher bandwidth. To help busy families enjoy high-speed connectivity at home, Huawei introduced Fiber To The Room (FTTR) solution which met the high volume of data and maintained the high speed demand. In countries that have deployed 5G technology, coverage has reached 95 percent of the population, with more than 10 million subscrib- ers, 1 million home users, and 20,000 business lines. We are currently seeing how 5G technology has become the backbone of industrial digitalisation. For example, 5G-en- abled solutions have made oil and gas fields in Saudi Arabia and UAE safer, more secure, and generated real operational savings. Meanwhile, 5G-enabled video surveillance and remote operation of gantry cranes in Oman and Saudi ports have improved the working environment and enhanced workforce diversity. Additionally, an innovative 5G private line solution has delivered rapid deployment of low-cost broadband services for small and medium-sized enterprises in Kuwait. Such innovations have brought healthy revenue growth for local operators, and we are committed to working closely with operators and partners across the region and globally to create simplified, green, and intelligent ICT infrastructure, allowing operators to deploy leading 5G networks. During the recently held SAMENA, we showcased several AR/VR services presented by the global market. The Metaverse, which integrates many new technologies and service models, is entrenching on all our lives increasingly, which presents abundant exciting new opportunities for operators. Of course, some of the most significant new opportu- nities for operators lie in XtoB, solutions which integrate 5G, premium private lines, intelligent cloud networks, data centers, and cloud. Huawei believes that XtoB opportunities will accelerate the industry’s digital transformation and grow the region’s digital economy. And we are witnessing changes in government and enter- prise ICT procurement models. There’s a shift from purchas- ing devices to purchasing services instead, from fragmented to full-stack procurement and they are focusing more on data and digital sovereignty. Facing these new demands and with Huawei’s support, many operators are actively developing capabilities in cloud, AI, and system integration. In addition to core connectiv- ity services, we are also working with operators to develop converged ICT solutions and offering both smart and stan- dard portfolios to capture the commercial market. But these exciting new opportunities need the support of new technologies. We will continue to work closely with all of our regional partners under the core principle of creating value for our customers. Together, we can build a bright future with advanced technologies to help us all build a fully connected, intelligent world. Lighting up the future An Jian, President of Huawei Middle East Region Carrier Business Group, shares how the tech giant is enriching life and enabling new opportunities with the help of intelligent technologies u Collaboration An Jian says Huawei will continue to work closely with its regional partners, thus creating value for customers 95% Huawei’s 5G penetration rate in countries where it operates12 Vol. 23/06, June 2022 C OMMENT / By Alice Weightman, founder and CEO of The Work Crowd and Hanson Search war on talent, wage inflation, and the shift in working culture prompted by the pandemic will mean employers are increasingly looking to flexible approaches in sourcing and managing human resources. This means more scope for free- lance and remote work, enabling women to better fit business activity around their responsibilities in the home. With the extension of the golden visa to creative sectors such arts and culture, there will also be more oppor- tunities for women to secure long-term residency through their existing employment. Career development The five-year residency option granted by the new green visa for skilled employees will give businesses more certainty around workforce retention and allow individuals to develop a longer-term career path. Why the new visa rules are a boost for women in business The long-term visa programmes are likely to further boost economic activity among women, create employment and career growth opportunities, and offer better work-life balance u Talent New green visa for skilled employees will give businesses more certainty around workforce retention The UAE Cabinet’s new visa regime represents a structural shift that will transform the local labour market. The extension of the golden visa and introduction of green visas will be a stimulus to attract more businesses to the region, creating more jobs, and opening new opportunities in a wider range of occupational sectors. As a leader on gender equality in the region, it’s not surprising that the country’s recent changes will help to further boost economic activity among women. The new opportunities for residency and employment neatly overlap with other recent visa reforms to create an ecosystem that will enable women to better balance family commitments with the advancement of their career. Employment opportunities As new businesses enter the market, a yarabianbusiness.com 13 C OMMENT Q THE EXTENSION OF THE GOLDEN VISA AND INTRODUCTION OF GREEN VISAS WILL BE A STIMULUS TO ATTRACT MORE BUSINESSES TO THE REGION” extended visits from family and friends who can lend support to work- ing parents. Long-term planning The new extended visa terms mean that, for the first time, families can establish a long-term UAE residency plan. Employees, entrepreneurs and freelancers can enter and work in the country without the need for a spon- sor. The extension of the visa grace period ensures that anyone losing their job has sufficient time to find other opportunities. With child sponsorship being extended to 25 years old for male family members and indefinitely for unmar- ried daughters, mothers will no longer have to curtail their career to move on with their dependents, and the death of the primary visa holder will not affect the status of the other family members, who can continue to stay in the UAE for the remaining visa tenure. What’s more, with the earlier announcement of a retirement visa, there’s a real opportunity to establish lifelong residency in the UAE, or at the very least, to plan for a family’s future with much greater certainty, making the UAE a more attractive place to call home. has become a land of opportunity for aspiring entrepreneurs. Work-life balance The new green visas, coupled with the remote working visa introduced in 2021, establishes a career framework that can better promote work-life balance. The system supports the increasingly popular digital nomad lifestyle, which particularly suits women who have home, care, or other responsibilities in different parts of the world. The regime also facilitates a five- year multi-entry tourist visa and a special entry permit, allowing for 10 The types of entry visas in the UAE’s new Entry and Residence Scheme u Vital contribution Women already make up nearly half of the UAE’s SME sector This additional time to build profes- sional momentum can help lessen the impact for women moving into or out of a career break. The extended visa duration should also encourage more busi- nesses to make a commitment to the continual professional development of their employees. This will empower women to formalise their professional credentials, helping to ease workplace re-entry. Entrepreneurship Women already make up nearly half of the UAE’s SME sector and the green visa for freelancers and self-employed individuals will encourage more female entrepreneurs to explore independent working. With no requirement for a sponsor for either category, this option will give women the professional freedom and flexibility to define their own pace of work and business growth. It also allows professional talent to move to the UAE as freelancers and enables more female employees to explore the opportunity of a side hustle that may evolve into freelancing or entrepreneurship in the future. With the scale of start-up invest- ment pouring into the country, the UAE Q THERE’S A REAL OPPORTUNITY TO ESTABLISH LIFELONG RESIDENCY IN THE UAE, OR AT THE VERY LEAST, TO PLAN FOR A FAMILY’S FUTURE WITH MUCH GREATER CERTAINTY, MAKING THE UAE A MORE ATTRACTIVE PLACE TO CALL HOME ” Q EMPLOYERS ARE INCREASINGLY LOOKING TO FLEXIBLE APPROACHES IN SOURCING AND MANAGING HUMAN RESOURCES”14 Vol. 23/06, June 2022 C OMMENT / By Vikram Gupta, founder and managing partner of IvyCap Ventures that was held in Dubai on 28th March 2022 and 29th March 2022, respectively. It was on the sidelines of this event that both the countries signed the CEPA with to strengthen bilateral relations. The countries believe that this would help in strengthening the relations and thereby boost the investment and employment of the two nations. Industry advantage The India-UAE VC Fund worth $150m launched at India Pavilion aims to source, invest and help in establishing How the UAE-India CEPA deal will benefi t the startup ecosystem in the Middle East u Solid relations The UAE-India CEPA aims to enhance ties and deepen economic and investment opportunities between the two countries Vikram Gupta, founder and managing partner of IvyCap Ventures, believes there will be a considerable scope of opportunities for SMEs, which will ultimately lead to job creation and employment avenues The UAE and India have consensually signed the Comprehensive Economic Partnership Agreement (CEPA) with a farsighted approach of strengthening the bilateral relations and boosting trade and investment between both countries. The deal is said to be an important step for trade and business even as the two nations celebrated the Golden Jubilee of diplomatic relations. The Indian Commerce and Industry Minister Piyush Goyal visited the UAE to participate in the Investopia Summit and World Government Summit, which C OMMENT / By Vikramarabianbusiness.com 15 C OMMENT Q THE DEAL IS SAID TO BE AN IMPORTANT STEP FOR TRADE AND BUSINESS EVEN AS THE TWO NATIONS CELEBRATED THE GOLDEN JUBILEE OF DIPLOMATIC RELATIONS” Opportunities abound While talking about the pact, Minister Goyal said: “The pact will not only enhance India’s commercial ties with the Emirati nation but also provide an “entry point” in several parts of Africa and the Middle East.” At present, the UAE is India’s third- largest trade partner. The CEPA that was signed between the two countries at that time aimed to facilitate the bilateral trade relations between the two nations. This is expected to amount to $100bn over five years as against $43.3bn in financial year 2021. It will encompass most of the industries and their respective sectors ranging from goods, services, rules of origin, intellectual property rights, and e-commerce. This agreement will put India in an advantageous situation. There will be better market access provided by the UAE on over 97 percent of the tariff lines which account for 99 percent of Indian exports to the UAE in value terms. The primary industries that will have advantages from the CEPA are the ones that have a major involvement of manual labour. According to media reports, talking about the benefits for the startup ecosystem, “Today we are the third- largest startup ecosystem, but our aspiration is to be the world’s number one startup destination. The startup bug has caught India’s imagination. The entire innovation ecosystem that the startup industry represents is giving a new direction, new momentum to India,” Goyal said. He added: “I have seen tremendous response from the Dubai Expo where our startups have got the opportunity to raise finances, sign MoUs and get angel investments.” The minister had also requested the startups to expand their reach to remote regions, villages, smaller towns, and also parts of northeastern India. To sum up, this pact will indeed open a plethora of opportunities for several companies from different industries. the various ventures. This will help in developing in the growth of India and UAE startups. Speaking at the event, Goyal said: “The UAE has a huge investment surplus in terms of investments ability, and India has a huge market which makes that an attractive destination, and therefore, we are not in competition with each other; rather, we complement each other. We are natural partners.” Segments like textiles, leather, footwear, sports goods, engineering products, medical devices, automobiles, and gems and jewellery will benefit from the deal. In addition, the annual exports worth approximately $26bn from India that attract a 5 percent import duty in the UAE are set to benefit from the agreement. According to a government release, in the area of trade in services, Indian service providers will be given market access to 11 broad service sectors like business, communications, construction and related engineering services, education, finance, and tourism and travel, and many others. Plus, the UAE has agreed to provide market access for Indian pharma that has already been approved in the developed jurisdictions such as the US and EU within 90 days. This is a welcome move for the industry players. The agreement also provides a proposition to form a technical council on investment, trade promotion, and facilitation led by both India and UAE. This will help in monitoring the trade relations and investment flows between the two countries. There will be a considerable scope of opportunities for small and medium enterprises (SMEs) which would ultimately lead to job creation and employment avenues. Startups and other organisations in both countries have enough potential and therefore can make optimum utilisation in fields such as sustainability, space technology, connectivity, artificial intelligence, emerging technologies and data analytics. $100bn The value of annual bilateral trade between the UAE and India within fi ve years of implementation of the CEPA u Key role Piyush Goyal, Indian Commerce and Industry Minister 16 Vol. 23/06, June 2022 C OMMENT / By Ali Sajwani, General Manager of Operations at Damac Properties Enter the metaverse, and you can instantly travel. Even to the moon, Mars, or places which only lived in the imagination before the virtual and augmented reality breakthrough. The metaverse opens up a whole new vista for the imagination and how we interact with each other and brands in the digital realm. But what about travel? Actual travel? Can the metaverse change the way we travel? A simple answer would be yes, in that it negates the need for most Will the metaverse change the way we travel? u Virtual reality The metaverse opens up a whole new vista for the imagination and how we interact with each other Here’s how the metaverse opens up a whole new vista for the imagination and allows us to interact with each other and brands in the digital realmarabianbusiness.com 17 C OMMENT Q SIMULATED TRAVEL EXPERIENCES MEAN ACCESS TO EXOTIC LOCATIONS NEED NO LONGER BE THE REALM OF THE PRIVILEGED AND RICH” travel wide and far from the comfort of our couches? Even traditional travel agents could conduct their business via the metaverse, offering an infinitely richer booking experience. The ability to represent yourself via an avatar could make booking just as interactive as in the real world. Real relationships can be formed in the metaverse, given that we can talk and move around together, enjoying shared experiences. Imagine how rich a booking experience might become if a travel agent avatar can literally show you around your room, the immediate area, and the beach… All we need to do to enjoy a whole new era in travel is embrace the technology, slip on a headset and enter a whole new world of experience. And I see nothing wrong with that, on the contrary, I find it fascinating! massive advantages to consumers when planning and booking; and benefits to the industry in terms of greater awareness, customer satisfaction, long-term cost savings and, of course, the powerful benefits of data gathering and mining. Metaverse travel is a great leveller. Simulated travel experiences mean access to exotic locations need no longer be the realm of the privileged and rich, albeit a simulated experience. And with rising concerns over the environmental impact of travel (especially long-haul destinations), perhaps we should be more content to corporate travel. Don a VR headset in the comfort of your own home or office, and you can appear as an avatar – a virtual representation of yourself – in a company meeting room on the other side of the planet. In real-time. I think that’s amazing. If you’re more into simply using the metaverse and its myriad applications for leisure, why not take a walk on a beach or around the Eiffel Tower? You can. Or perhaps you’d rather buy the Eiffel Tower? You can do that, too! What’s missing in both these scenarios is the sense of being there; the smells, the air, the ability to touch. And even those are being worked on in the metaverse. The pandemic certainly pushed the speed at which the world was willing to embrace virtual travel, but now you can experience a flight, hotel room and tours, all generated in virtual reality. Emirates launched a VR app back in 2021, allowing users to view cabin interiors onboard the Airbus A380 and the Boeing 777-300ER. And now, the Dubai airline has announced a $10m investment in NFTs and the metaverse. It sees NFTs as a useful tool in ticketing and for recording journey information such as flight times and distances travelled. And you have to take notice when you realise companies like aircraft manufacturer Boeing is working with 3D engineers to create an immersive virtual flight experience. Part of that idea is so that potential passengers can enjoy a ‘try before you fly’ experience. You might also walk around your hotel and room before making a booking. Of course, this means that consumers will wield even more power over where they choose to go and how they get there. The metaverse heralds a new era in consumer choice, but will it replace the feelings evoked by actual physical world travel? I don’t think so. What it can do is enhance the entire travel and tourism experience, bringing $10m The value of Emirates Airline’s investment in NFTs and the metaverse uNew world Real relationships can be formed in the metaverse, given that we can talk and move around together, enjoying shared experiencesNext >