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Student ID :- 1209244 LEGAL FRAMEWORK IN UAE:To reinforce its leading position as a major hub for international trading activities

and improve the overall performance of the national economy, the UAE has always been keen to develop its legal system in line with international standards since the formation of the union in 1971. The rapid pace of economic development in the country has also necessitated a constant upgrade of the federal legislative framework with the government closely working with a number of international organizations and institutions to modernize the country's economic legislations. On the other hand, Abu Dhabi, which leads the national efforts to expand and diversify the country's vital economic sectors, has long realised the importance and huge benefits of a healthy legislative environment for a prosperous economy. Considerable attention is being devoted to the Emirate's local legal system which already guarantees investors a stable and safe atmosphere to invest their money.

Legal System in Abu Dhabi Under its wise leadership, Abu Dhabi Government, which is pursuing a reformist economic agenda, has been carrying out a number of structural economic reforms and a major shift in its role from a provider to a regulator. The Government is working on several fronts to improve the efficiency of the relevant agencies to develop an effective

Student ID :- 1209244 single window system, e-government programme and independent judicial system that will ensure better procedural efficiencies and remove the remaining bureaucratic and legal barriers. The reorganisation of the existing legislative framework is being implemented with the full cooperation of the federal government in order to facilitate easy administrative procedures for the establishment and operation of business ventures across the Emirate. Thanks to these efforts, Abu Dhabi fared well in several economic surveys and reports over the past few years including the Doing Business 2010 Report which ranked the Emirate in the 8th place internationally in ease of doing business and cross-border trade. The efforts have also contributed to robust growth in non-oil sectors and an increasing role of private sector in the overall economic activity.

Department of Legal Affairs in the Ministry of Economy The Department of Legal Affairs in the Ministry of Economy is responsible for developing federal laws and legislations related to economy, commerce and investment. The department is tasked with the formulation of draft bills, amendments, ministerial resolutions, ministerial and administrative decisions and circulars related to economic and commercial activities in the country. It also participates in the meetings of the Technical Committee for Legislation at the Ministry of Justice.

Student ID :- 1209244 The department reviews Memoranda of Association and basic statute of private joint-stock companies and gives legal opinion on them. Other responsibilities of the department include giving observations on agreements, treaties and resolutions regarding the GCC trade laws and the economic and trade agreements to be concluded with the Arab nations.

Existing Business Laws in the UAE The UAE provides a supportive legal framework for businesses in line with the vision of country's leadership and their deep conviction that an effective legal framework in par with international standards is essential to a competitive and prosperous economy. The country has issued a number of laws related to the economy, trade and investment since its formation in 1971. These laws are listed in the right column of the page.

New Business Laws and Amendments The UAE is currently working on upgrading a number of key legislations, especially with regard to the development of the country's economic infrastructure and investment climate in a bid to better address investment issues and regulate the relationship between all parties concerned with the country's economic development and investment process.

Student ID :- 1209244 Draft bills on foreign investment, competition, arbitration, certificate of origin, industry affairs organization, suppressing commercial fraud, industrial property law, federal law on organization of the auditing profession and federal law on commercial companies are already being reviewed by the relevant authorities. Foreign Investment Law The new law on foreign investment removes a large part of the regulatory and administrative obstacles to attract more foreign and Arab direct investment. It is aimed at creating a unified regulatory framework for foreign investment in terms of regulating investment procedures, registration and licensing. The law also deals with the advantages, tax exemptions and guarantees for foreign investors, as well as their rights and obligations. Competition Law The competition law is aimed at promoting the principle of competition and evolving a competitive market that is ruled by sheer market mechanisms. The law is envisaged to free the national economy from all wrong practices that adversely affects its efficiency, including monopolies which are against the principle of competition and prohibits all types of acts that lead to a monopoly. It is prepared in line with the recommendations made by the World Trade Organization (WTO) in its last review of the UAE's trade policy. The law also provides a conducive environment for businesses to promote efficiency, competitiveness, consumer welfare and sustainable development in the country.

Student ID :- 1209244 Law on Certificate of Origin The law on certificate of origin aims to reorganise the legislations related to the rules of the certificate of origin based on the progress achieved in this area. The new law will address various issues pertaining to the origin of national goods and issuance of certificates of origin. It will also allow the Ministry of Economy to impose penalties and fines on those who issue fake certificates, documents or data. New Federal Law on Commercial Companies The new federal law on commercial companies makes it mandatory for all companies in the country to develop a general framework for corporate governance to ensure the protection of shareholder rights, achieve transparency, disclose financial data and improve the efficiency and integrity of the companys director board. The New Law on Commercial Arbitration The Ministry of Economy has also finalised the draft bill of a new commercial arbitration law in collaboration with a number of legal experts from the Abu Dhabi Conciliation and Arbitration Centre. The new law will be applied to resolve commercial disputes instead of the UAE Civil Procedure Code (Federal Law No. (11) of 1992. As per the new law, civil cases will be heard by the civil courts of respective emirates, while the Abu Dhabi Federal Court of Appeal will hear international cases. The law is in line with international arbitration principles, particularly the Model Law of the United Nations Commission on International Trade Law (UNCITRAL) of 1985 and its amendments in 2006.

Student ID :- 1209244

Development of Business Laws A significant amount of time, study and efforts goes into the development process of laws and legislations to ensure their compatibility and relevance to the general economic and social conditions of the country. Preparation of laws takes a series of procedures and discussions involving several federal and local government bodies.