United Arab Emirates

Dubai, UAE | 22 July 2025 MB secures EUR 1 million victory for PGM Technologies in DIFC cross-border dispute We are delighted to announce that Matouk Bassiouny’s (“MB”) International Dispute Resolution team successfully obtained a favourable judgment for PGM Technologies in a cross-border breach of contract case before the Dubai International Financial Centre (“DIFC”) Courts. The dispute arose from a breach of contractual obligations, payment defaults, and the enforcement of agreed terms. The DIFC Court awarded our client full recovery of EUR 1,000,000, together with contractual interest at 5% per annum from the date of breach, post-judgment interest at the same rate until payment, and costs totalling USD 100,752.28. The team advising on this case was led by Ahmed Tony (Partner), supported by Youssef Nassar (Senior Associate) and Alia Elraey (Associate). Led by Founding Partner and Group Head of Dispute Resolution, F. John Matouk, our International Dispute Resolution team brings extensive experience in representing clients before the ADGM and DIFC Courts in the UAE. Our team is common law qualified, with F. John Matouk admitted in New York, Ahmed Tony in England and Wales, Youssef Nassar in New York, and Alia Elraey in England and Wales. As part of our commitment to providing comprehensive legal services, we collaborate with specialist barristers to ensure our clients receive the highest quality representation throughout the litigation process.         For more about Matouk Bassiouny, check out our website at https://matoukbassiouny.com/.

Saudi Arabia’s push to diversify its economy has put serious weight behind sectors with long-term global value. Technology, including software development, cloud services and digital infrastructure, is one of the main targets. Backed by state funding, legal reform and large-scale national projects, the Kingdom is opening up to international tech companies in a way it never has before. If you’re looking to enter the market, this article sets out how to establish a software or tech development company in Saudi Arabia, what the process involves and what to get right early on. What counts as a tech company in Saudi Arabia The tech sector in Saudi includes a broad mix of digital and software-based businesses, including: Custom software and mobile app development SaaS platforms and digital marketplaces Cloud infrastructure and data services Cybersecurity providers AI, analytics and IoT-focused solutions   These are typically licensed under activity categories such as “computer programming,” “IT consultancy,” or “information technology services.” The key point is that if your business involves building, supporting or securing software or digital systems, it will fall under one of these regulated activities. Licensing and company setup Setting up a tech company as a foreign investor starts with the Ministry of Investment (MISA). This is where you apply for a foreign investment licence. Most software and IT-related businesses fall under “computer programming” or “IT consultancy” activities. Once granted, this licence allows full foreign ownership and is the entry point to company formation. Next comes commercial registration with the Ministry of Commerce which includes reserving your company name and issuing the national commercial registration (CR). Your MISA licence and CR are linked, so you’ll need to complete both in sequence. If your business is expected to generate more than SAR 375,000 in annual revenue, you must register with ZATCA for VAT. You’ll also need to apply for a municipality licence in the city where you’ll be operating. To legally employ staff, you’ll need to open files with GOSI (for social insurance) and set up your company in the Nitaqat system, which tracks Saudisation compliance. These steps are mandatory even if you’re starting with a small team. Most foreign-owned companies begin with a declared capital of SAR 500,000, unless a specific activity or authority requires more. Some sectors carry higher capital rules, but for general software, tech development or IT services, this amount is typically accepted. While the process involves several authorities, it’s now more coordinated than before and most filings can be handled through legal or corporate service providers. Getting operational: office, hiring and compliance Once your licence is issued, you’ll need a physical office lease to complete setup. Virtual offices aren’t accepted for tech businesses, and the lease must be in place before you apply for the municipality licence. Commercial registration triggers the need for Chamber of Commerce membership, which is handled at the same stage. If you plan to hire, register with GOSI before onboarding staff. Saudization also applies from the start. Minimum Saudi hiring targets depend on your company size, but even one-person operations are expected to comply under the Nitaqat system. Hosting, IP and compliance There are a few regulatory details to pin down once your business is operational. If you handle user data, especially in sectors like finance or government, check whether data needs to be hosted locally. This comes under CST rules and applies more tightly to certified cloud providers. Software IP can be registered with the Saudi Authority for Intellectual Property. It’s not mandatory, but worth doing if you’ve built proprietary code or platforms. There’s no blanket rule requiring Arabic language support unless your clients include government agencies. That said, localisation matters. Saudi users expect interfaces and content that reflect regional usage, even if the product is built on global architecture. Planning for this from the start, along with the right setup and compliance structure, will save time, reduce risk and keep your business running without interruption. After setup: banking, admin and local hurdles Once your company is fully registered, you’ll need to open a corporate bank account. This can take time, especially for foreign-owned businesses. Banks will ask for the full set of company documents in Arabic, along with details on ownership and signing authority. Processing can take a few weeks, so plan accordingly. You’ll also need to stay on top of licence renewals and ZATCA reporting if registered for VAT. Some of this is automated, but errors in translation or document formatting still cause delays. The municipality stage is another common bottleneck, especially if your office lease isn’t properly registered or linked. Delays in Arabic documentation, last-minute approval requests, or unclear KYC steps can all slow things down if not planned for. Planning for this from the outset, including the right setup and compliance structure, will save time, reduce risk and help you stay operational without disruption. How can The Knightsbridge Group help? With over a decade of experience supporting international clients across the Gulf, we help businesses enter and operate in Saudi Arabia with confidence. We work closely with Saudi regulators to ensure each setup is structured correctly from the start. Our team handles the full process, from MISA licensing and commercial registration to Saudisation planning, tax setup, office leasing and visa support. We also advise software, cloud and tech-driven companies on how to meet local data, IP and compliance requirements without overcomplicating operations. If you would like expert assistance with launching a tech company in Saudi Arabia, or help with any other structuring or licensing matter, contact us at [email protected].

Introduction: In the UAE, it is legally permissible for banks to close a customer’s account if multiple checks are returned due to insufficient funds. All the banks and financial institutions in the UAE are regulated by the Central Bank of the UAE. The central bank of the UAE issued a circular for the UAE Central Bank’s Consumer Protection Regulation (circular no. 8/2020) for all the banks in the UAE. According to this circular, the banks are obligated to inform customers in writing about the consequences of returned cheques. It stipulates the responsibility of all the banks to inform customers in writing about the consequences of returned cheques. These consequences include applicable fees, potential closure of the current account, and negative reporting to the Al Etihad Credit Bureau. Furthermore, the central bank has stipulated that a customer's account may be cancelled for two years if four cheques are returned within a year due to insufficient funds. If this happens again, the cancellation period is extended to three years, and any unused cheques must be recovered. In the event that if customer's account has been cancelled by the bank due to bounced cheques, the bank will be reported to the Al Etihad Credit Bureau. The customer's credit score might decline as a result of this report. Moreover, this poor credit score could make it more difficult for them to get cheque books or open new accounts from other banks. According to central bank regulations, all financial institutions must investigate creditworthiness before providing such services. What are the suggested courses of action? If anyone has concerns that their bank account would be closed as a result of bounced cheques, they should first review the terms and conditions of their bank regarding cheque returns. Further individual can contact their bank’s customer service or relationship manager to understand specific policies. It is important to ensure sufficient funds are maintained in their account to cover issued cheques. Conclusion: It is possible for the customers to take preventative steps, and it will assist in protecting the individual's credibility and maintaining a favourable standing with the bank. Author: Dr. Hassan Elhais

The UAE government has issued a series of changes to its family laws through the recently passed new personal status law, namely Federal Decree Law No. 41 of 2024 on the Issuance of Personal Status. The law will be enforced in the country in April 2025 and will be applicable to Muslims in the UAE, both nationals and expats. The law will be applied to ongoing cases in the court that have not received a final order. The new law has made changes in provisions related to grounds for divorce, child custody and alimony, among others. Divorce lawyers in Dubai are studying the new law and analyzing the impact it will have on the family legal system in the UAE. Custody Laws One of the most significant changes under the new law is the change in the age of custody. The custody of children has been raised to 18, regardless of the gender of the child. In a custody ruling, custody is generally granted to the mother. Previously, mother’s custody extended until a male child turned 13 and a female child turned 11. However, the new law not only raises the age of custody, but also makes it uniform, regardless of the gender of the child. Among other changes in laws related to child custody, a non-Muslim mother’s custody over a minor child may be extended beyond the age of 5, as per the discretion of the court. The law has also made procedural changes to obtaining educational guardianship, enabling parties to approach the Urgent Matter Court to ensure speedy judgements. Termination of marriage The new law has brought in certain changes to the provisions regarding grounds for divorce. Divorce due to substance abuse The law now specifically states that using drugs, alcohol or other psychotropic substances is a valid ground for divorce. Although parties currently use this ground to obtain a divorce, the current law under Federal Decree Law No. 28 of 2005 does not explicitly list this reason as a ground for divorce. Rather, the reason is raised as per established rulings of the Court of Cassation. Divorce due to medical conditions The law has also made changes to the conditions governing divorce due to medical conditions that prevents the parties from engaging in marital activities. As per the new law, if a spouse invokes this ground for divorce, the court has the authority to appoint an expert to evaluate such medical conditions and to grant one year time for medical treatment to the spouse who requires it, before granting the divorce. Divorce due to abandonment If a wife is abandoned by her husband, she may request for a divorce after waiting for 6 months. The older law set this waiting period as one year, but the new law has shortened the time period. However, the wife is now required to give a 6 months’ notice to her husband to return to the marital house or enable the wife to join him at his new residence. Divorce due to the imprisonment of the husband The law allows a woman to seek a divorce if her husband is imprisoned for more than three years, and has served at least one year of the imprisonment. The new law has laid down two additional requirements to invoke this ground, stating that the divorce will not be issued unless there is more than 6 months left before the husband is released from prison, and the divorce request will not be accepted if the husband is released within the time the litigation process is completed. Dubai family lawyers will understand the practical aspect of the law, once the law comes into effect on the 15th of April 2025. The legal experts of family law in the UAE will now adapt these new changes in their practice and advise on their clients matters. Author: Dr. Hassan Elhais