General and Legal News from the UAE – April 2022 № 2

published on 22 April 2022 | reading time approx. 3 minutes

The following provides a brief overview about the latest business, economic and legal news from all around the United Arab Emirates and GCC region.

A third of UAE residents have invested in cryptocurrencies »
MENA economies can add up to $1,6tn over 30 years by fully digitalizing: World Bank »
Tunisia president dissolves parliament, extending power grab »
UAE raises fuel prices for April 2022 »
UAE: Emirates ID to replace residency visas in passports »

A third of UAE residents have invested in cryptocurrencies

The UAE have adopted a new law governing virtual assets last month which governs emerging technology sectors in order to protect investors and thus put more confidence of the UAE residents into the use of cryptocurrencies: 33 percent of residents had invested in cryptocurrencies by the time the new virtual law had been adopted; globally 30 percent have already invested in cryptocurrencies.

The world’s-renowned cryptocurrency exchange platform crypto.com will have its regional hub in Dubai.

MENA economies can add up to $1,6tn over 30 years by fully digitalizing: World Bank

As digital technologies are getting more widely used, the World Bank estimated that the economies in North Africa and the Middle East (including the GCC) will be able to achieve 46 percent growth in per capita GDP over the upcoming 30 years which equals approximately a long-term gain of minimum $1.6 trillion; that is if they fully adopt digital technologies.

The Covid-19 pandemic caused a further strengthening of digital technologies. The World Bank’s Vice President for the Middle East and North Africa region, Ferid Belhaj, was quoted saying “A digital transformation would provide jobs in a region where unemployment is unacceptably high, particularly among the youth and women. With concerted effort, this narrative can change. The gains from shifting to a more digital economy are exponential and governments should do everything they can to remove barriers preventing such a transition. The sooner and faster the push, the bigger the gains.”

A big side effect of the pandemic is an increase in the usage of online banking services: In the Arab region’s biggest economies most of the population chose to switch to do their banking via online transactions: 61 percent in the UAE and 77 percent in Saudi Arabia. This safes the cost of informational costs such as time and money.

Furthermore, it is estimated that digitalization would double the female labor force participation rate in the MENA region by approximately 20 percent in the next 30 years as well tourist arrivals could rise by 70 percent in the next years which in turn would create jobs in the tourism and hospitality sector.

Tunisia president dissolves parliament, extending power grab

Tunisia’s president Kais Saied has dissolved the Tunisian parliament end of March after parliamentarians held an online plenary session where they had voted for a bill that reversed “exceptional measures” taken by the President last year.

President Kais condemned the MPs decision as a “coup attempt” and said that those “betraying” the nation would be prosecuted while he had extended an eight-month power grab.

In a statement aired on TV he stated “Today, at this historic moment, I announce the dissolution of the Assembly of Representatives of the people, to preserve the state and its institutions.”

President Kais, a former law professor was elected to office during public anger against the political class in 2019 and had already seized wide ranging political powers from the assembly last year in July. He then went on to give himself further powers and rule by decree. Initially he was welcomed by a majority of the population however recently critics arouse accusing him of dangerously putting the country back on a path towards autocracy.

UAE raises fuel prices for April 2022

As at the beginning of every month, the UAE has reevaluated the fuel prices for the month of April and has consequently risen fuel prices.

The new fuel prices will be the following from 1st April:

Super 98 Petrol: 3,74 AED/liter (15,78 percent increase to previously 3,23 AED in March)
Special 95: 3,62 AED/liter (16 percent increase to previously 3,12 AED in March)
E-Plus 91 petrol: 3,55 AED/liter (16,3 percent increase to previously 3,05 AED in March)
Diesel: 4,02 AED/liter (26 percent increase to previously 3,19 AED in March)

The increase in price of oil is an expected consequence of the ongoing Ukrainian war and the decision by US president Joe Biden to release approximately 1 million barrels per day from crude reserves for the coming months to calm disruptions caused the Russian invasion into Ukraine.

For May the Opec + have ratified the 432,000 barrel-a-day supply increase.

UAE: Emirates ID to replace residency visas in passports

From April 11th onwards expat residents in the UAE do no longer require residency visa stamps in their passports. Residency documents issued after 11th April will be replaced by the resident’s Emirates ID.

The Federal Authority for Identity, Citizenship, Customs and Port Security announce that all relevant residency-related information will be contained in the Emirates ID and the ID will forth on count as the expat’s residency.

Residency visas are as previously still issued for a period of two, three or ten years depending on the resident’s visa status and after having taken a medical test.