The Legal implications for Education Institutes in the Kingdom of Saudi Arabia

For any institute, the legal aspects are of utmost importance regardless of the nation. This pertains to the registration of the institute, the qualifications and experience of the staff, contracts with parents and other institutes, and dealing with government departments.

Education institutes in Saudi Arabia need to consider a range of regulations when establishing themselves. These include regulations relating to their physical premises, the curriculum they offer, and the staff they employ. Ensuring compliance with these regulations is essential for any institute wanting to operate in Saudi Arabia. These regulations include:

1.      Mergers and acquisitions (M&A)

When it comes to M&A, education institutes are no different than any other type of organization. There are several legal considerations which need to be taken into account, and it is important to cover the full cycle of the merger in order to ensure a smooth transition.

Financial considerations will be key, as the educational institute will need to assess the value of the target institute and agree on a fair price. It is also important to have an operational model in place so that the educational institute can continue to provide quality education and services to its students.

2.      Operational model

The operational model is one of the regulations which education institutes in Saudi Arabia need to consider. An operational model is a set of procedures and processes that an organization uses to produce products or services. It includes the organizational structure, the division of labor, and the way resources are allocated. When establishing an educational institute in Saudi Arabia, it is essential to develop an operational model that complies with its regulations.

3.      Partner Agreements

Partner agreements are contracts between two or more organizations that outline their roles and responsibilities in a joint venture. When establishing an educational institute in Saudi Arabia, it is essential to have partner agreements in place with any partners involved in the venture. These agreements should clearly define the roles and responsibilities of each party and how decisions will be made.

4.      Asset Management

Asset management is the process of identifying, acquiring, developing, and maintaining assets to maximize their value to the organization. When establishing an educational institute in Saudi Arabia, it is essential to implement an asset management plan that complies with the country’s regulations. This plan should identify the assets required for the institute and how they will be acquired, developed, and maintained.

5.      Expansion

An expansion is the process of growing an organization by expanding its operations into new markets or by acquiring other organizations. When establishing an educational institute in Saudi Arabia, it is essential to consider the potential for expansion and how this might be achieved. The institute’s expansion plans should comply with the country’s regulations and should be achievable within the desired timeframe.

How can education institutes ensure compliance with the law?

For education institutes to ensure compliance with the law, they need to have a comprehensive understanding of the applicable laws. It is also important for institutes to have a well-versed legal team in Saudi and UAE law and can provide guidance and support when required.

Institutes should also put in place systems and processes that ensure all employee conduct is in line with the law. This includes ensuring that employees are aware of the legal requirements and policies in place and implementing disciplinary procedures for staff who do not comply with the law.

What legal challenges could educational institutes face?

There are several legal challenges that could face an education institute in the Kingdom of Saudi Arabia.

One such challenge is the process of merging with another academic institute. This process must be undertaken in accordance with the regulations set by the government and can be a complex and time-consuming procedure.

Another challenge is the operational model of the institute. The model must be compliant with the regulatory framework to protect all stakeholders’ interests.

Financial considerations are also key, as institutes often need to secure finance in order to fulfill their objectives. A partnership agreement is essential in order to protect both the interests of the partner and the academy.

Expansion is another key issue for institutes as they look to extend their reach into new markets. Careful planning and execution are required in order to minimize any legal risks.

Real estate and asset management are important aspects of an education institute’s operations and must be undertaken in a responsible manner. Any breaches of regulations in this area could lead to significant legal penalties.

What are the benefits of compliance with the law?

There are a number of benefits to be had when an education institute complies with the law. Perhaps the most obvious is that it demonstrates a commitment to best practice and a desire to operate safely and legally.

Compliance with the law also helps to build trust with regulators, parents, and students. It shows that an institute takes its responsibilities seriously. This also indicates that it is committed to safeguarding the welfare of its clients.

Lastly, compliance with the law can help to protect an institute from potential legal action. This can include financial damages, as well as damage to reputation.

Education institutes in the Kingdom of Saudi Arabia need to be aware of the legal implications that come with running their institute. There are a number of laws and regulations that institutes need to adhere to in order to protect their students and staff and avoid any legal penalties.

Institutes should seek legal advice to ensure they are aware of their responsibilities and help comply with the relevant laws. A reputable law firm can help with all aspects of running an institute, from drafting contracts and policies to representing the institute in legal proceedings.

If you are looking for legal assistance in establishing an educational institute in Saudi Arabia, don’t hesitate to contact Hammad & Al-Mehdar Law Firm. Our experienced team can help you navigate the regulatory landscape and ensure compliance with all relevant regulations.

What Are the Legal Implications of Health-Tech?

Over the years, there has been unprecedented growth in digital health used in delivering healthcare across the GCC states. However, the COVID-19 Public Health Emergency (PHE) has accelerated digital transformation in the healthcare industry more than in any other industry.

With the rise in demand to meet patients’ needs and control over their health, tech companies are coming up with new tech advancements in in-patient management diagnostics and treatment. Inventions like e-prescriptions, electronic medical records (EMR), and healthcare information and management systems (HIMSS), among others, have changed how healthcare is delivered to patients.

However, like any other industry undergoing rapid growth, health tech faces dramatic legal changes; for instance, in 2019, the UAE president issued the health data law, which aims at regulating the use of technology in the healthcare industry. Moving forward, tech companies in these spaces should expect heightened legal scrutiny from various regulators.

The following are some legal considerations in health tech.

1. Regulatory Bodies

Companies developing medical devices that incorporate Artificial intelligence (AI) and machine learning (ML) should abide by the Ministry of Health and Prevention (MOHAP) new approaches to regulate health tech. Companies must provide their proposals and any other critical information about any of the machines to be installed and used in healthcare.

Recently, a blockchain-based health data storage platform was introduced to help MOHAP efficiently provide smart health services to patients. The guidance by the regulatory bodies will help companies developing medical devices clarify to what extent the products will be regulated.

2. Fraud and Abuse

As healthcare operations are adopting technology, every person involved, from providers to vendors and payers, must adopt key practices to prevent or minimize fraud and abuse. All models involved in digital delivery create different types of risks under the legal theories, which the Ministry of Justice(MOJ) has taken a key interest in.

MOJ scrutinizes different healthcare vendors, for instance, those that provide electronic medical records. Organizations must provide consumers using medical insurance cards with relevant knowledge on how to protect themselves against questionable actions.

The companies must also have appropriate monitoring and enforcement strategies to eradicate fraud and abuse, according to the Saudi Arabia Anti-fraud and abuse regulation body.

3. Antitrust

Balancing data sharing, and data blocking, is one of the greatest antitrust concerns in digital health. Oversharing data in digital health is much more complicated compared to any other industry. While some companies can positively welcome the idea, sharing data in digital health can lead to regulatory issues.

Limited sharing can make a provider dominant in the market; while this isn’t necessarily a bad thing, it creates different antitrust issues, for instance, abuse of dominance. Abuse of dominance is considered a breach of antitrust, which results in lawsuits, and heavy fines, among others.

4. Data Privacy

Healthcare professionals must protect the confidentiality of patient’s medical data at all costs, and any breaches in the data should be reported immediately and appropriately. Relevant companies must comply with data protection in the right manner to prevent exposure to any liability when handling sensitive patient data.

All the following issues should be put into consideration when handling sensitive data:

  • Seek consent in data processing, particularly in clinical trials
  • Ensure that data subjects are notified about secondary uses of data, for instance, in the case of research
  • Healthcare providers and pharma businesses impacted by any data flaws are allocated compliance responsibilities
  • All consent should be explicit, specific, and informed

5. Product Liability

Product liability is a type of law in which the law holds the producer (manufacturers, suppliers, retailers and distributors) responsible for any product defects that cause injuries to patients. In digital health, many people can be held liable in case of litigation; such people include:

  • Data provider
  • Software developer
  • Device manufacturer
  • The company responsible for commercialization

The Consumer Protection Association of Saudi Arabia aims to protect consumers’ interests and safeguard their rights. All those who fail to meet the established professional standards, requirements and ethics must face disciplinary actions.

6. Employers Liability

As more and more digital devices are adopted by employers, there will be a need to analyze data collected by all these devices. Analysis of data comes with its own set of risks to the employer; for instance, if a patient is harmed due to any foreseeable issues that weren’t addressed, then the employer can be held liable.

A foreseeable issue depends on what the employer knows or doesn’t know. As a way to protect the employer, digital health providers must not disclose personal health data to the employer.

7. Ethical Use of Artificial Intelligence

With the rise in technology in healthcare, there is more focus on the use of AI. Several guidelines have been produced over the years to help with the evaluation and implementation of digital technologies in the healthcare industry. However, even with this, there have been cases of discrimination and biases made by AI systems.

As a result, there have been increased calls to make these systems more transparent. Companies must adapt and implement good governance when it comes to procuring and implementing AI systems in healthcare.

8. Cybersecurity

Every day, organizations are becoming susceptible to cyber-attacks that are threatening confidential information and disrupting daily activities. Hospitals, particularly private hospitals, store a lot of information that is worth lots of money in the wrong hands.

All the healthcare organizations accessing patients’ data must comply with any laws set, including the proposed Personal Data Protection Law (PDPL). Ensuring digital health solutions are in compliance with the set laws is one way to reduce and prevent cyberattacks.

The healthcare industry is quickly adopting technology to provide health services smarter and faster. However, with technology comes great risks that affect everyone involved. Regulatory bodies are increasingly becoming focused on the health tech space and new products introduced in the healthcare industry.

Even though there are various opportunities for healthcare delivery models, the responsible companies must tread lightly and ensure they are in compliance with the rules and regulations in all the GCC states.

If you are facing any issues in the health tech sector, our attorneys at Hammad & Al-Mehdar can help. The attorneys will provide you with practical solutions thanks to their years of experience and high knowledge. Contact us for assistance.

Types of Partner Agreements and their importance

The most important relationship in any business venture is between the two or more partners. Partner agreements protect all parties involved whenever a disagreement arises, which can be difficult for business owners to handle on their own.

Most jurisdictions do not require partner agreements for partnerships, which has led to the misleading notion that they’re not important in a partnership, however failure to devise a comprehensive legal agreement has led to several high-value claims, which have resulted in business failure.

What Is A Partner Agreement?

A partner agreement is a contract between two individuals in a business relationship. The agreement lays out the terms of the relationship, including each partner’s responsibilities, rights, and liabilities. The agreement can also include provisions for how the business will be run, how profits will be distributed, and what will happen if the partnership ends.

Creating a partner agreement can help prevent disputes down the road by clarifying each partner’s role and expectations. It can also give each partner a greater sense of security, knowing that there is a written agreement in place.

Types Of Partner Agreements

There are many types of partner agreements, we explore three primary kinds: buy-sell agreements, operating agreements, and partnership agreements. Each type of agreement has different purposes and benefits.

A buy-sell agreement is an agreement between business partners that outlines what will happen if one of the partners wants to sell their interest in the business. This agreement can help prevent disputes between partners and ensure that the business continues to operate smoothly if one partner leaves.

An operating agreement is a contract between the business partners that outlines the roles and responsibilities of each partner, as well as the management and ownership structure of the business. This agreement can help prevent misunderstandings and disagreements between partners.

A partnership agreement is a general contract between business partners that specifies their roles in the partnership, their investments, and their responsibilities. This type can be categorized further based on the different types of partnerships, such as a partnership limited by shares, limited partnership, general partnership, or joint ventures.

Who Needs A Partner Agreement

In most jurisdictions, partner agreements are not required by law. However, without a partner agreement in place, government regulations regarding partnerships will apply, which may put some partners at a disadvantage on matters tax liability, business continuity, or even sharing profits.

That said, you need a partner agreement if:

  • You’re concerned about the continuity of your business/ partnership if a partner dies or is incapacitated in a way that prevents them from fulfilling their obligations to the partnership.
  • You and your partners are concerned about the fair distribution of profits, work obligations, and tax liability.
  • You and your partners are from different jurisdictions. A partner agreement will help streamline any conflict resolution that may be needed, as it would take precedence over state law.

Why Partner Agreements Are Necessary

There are many reasons why partner agreements are necessary. First, they help to avoid misunderstandings and conflict between partners. Second, they provide clarity about each person’s role in the business. Third, they can help protect the business if one of the partners dies or becomes incapacitated. Fourth, they can help to resolve disputes between partners.

Any business with more than one owner should have a partner agreement.

The Benefits Of Partner Agreements

As business partners, it is important to have a legally binding agreement that outlines the roles and responsibilities of each party and the expectations for the partnership. A partner agreement can help prevent misunderstandings and disputes down the road and provide a clear path for resolution if problems arise.

There are many benefits to having a partner agreement, including:

  1. Clarifying the Roles and Responsibilities of Each Partner
  2. Establishing Ground Rules for the Partnership
  3. Protecting Each Partner’s Interests
  4. Preventing disagreements and Disputes
  5. Setting Out a Path for Resolution if Problems Arise

How Partner Agreements Differ By Industry

When it comes to partnerships, there is no one-size-fits-all agreement. The terms of a partnership will vary depending on the specific industry in which the partners operate. For example, in the construction industry, partners may agree to share responsibility for liability and workers’ compensation claims. Partners may agree to share patient records and other confidential information in the healthcare industry.

Each industry has its unique risks and challenges, so partners must take the time to understand the nuances of their particular agreement. Doing so will help ensure that all parties are protected if something goes wrong.

The Evolution Of Partner Agreements Globally In A Digital World

As the world has become more digital, business operations have changed dramatically. One of the most crucial aspects of running a business in the modern world is having a strong and enforceable partner agreement. This is especially true for businesses that operate internationally.

The globalization of business has led to an increase in the use of partner agreements. As businesses expand their operations into new markets, it is essential to have a clear understanding with their partners about what is expected from each side. A partner agreement can help ensure that both parties are on the same page and clear about their respective rights and obligations.

The rise of the internet and online commerce has also impacted partner agreements. Many businesses now operate entirely online, which has created new challenges when it comes to enforcing agreements.

When one party is based in one country and the other in another, it can be difficult to take legal action in case of breach of contract. Partner agreements can help solve this problem by stipulating that disputes should be resolved through arbitration in a specified jurisdiction.

In response to the growing globalization and digitalization, three countries: Singapore, Chile, and New Zealand – have come up with a novel solution dubbed, The Digital Economy Partnership Agreement (DEPA) that seeks to resolve the problem of enforcing partner agreements across different jurisdictions.

Partner agreements are integral to a mutually beneficial partnership that does not disadvantage any partner. Lacking one puts a partnership and its partners at a serious disadvantage.

Tele-health and Data Protection Laws

Telehealth continues to be a promising healthcare model within the GCC region. More specifically, The United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) are some of the countries across the region that are actively leading in advancing modern healthcare services. Recent reports indicate that the governments of both countries are applying vigorous frameworks to enhance the development of telehealth services.

With the advances in telehealth, new data protection laws are also being enacted, as each country strives to protect its citizens. This means that investors must conduct due diligence when investing in modern healthcare in the region, specifically given the increased regulations across the industry. Currently, remote patient monitoring (RPM), Health, and virtual visits are some of the healthcare technologies that are poised to thrive in the buoyant GCC market.

The Trends and Challenges of Telehealth in the UAE and Saudi Arabia

In societies such as KSA or the UAE, where relational connections are esteemed and direct specialist-patient communication is standard, challenges in employing technology will inherently bring with it challenges.

Regularly, patients are concerned of the doctor’s experience, the impact of innovation, security, and protection during sessions. Aversion toward the utilization of innovation is driven by age, orientation, and religion.

Likewise, the absence of information or involvement with the innovation and the requirement for preparing are normal obstructions. Likewise, a few suppliers assume the use of this innovation with shortcomings (e.g., diagnosing could take more time), loss of income, and compensation troubles (e.g., most patients pay through cash on hand).

However, telehealth is a promising model for medical care administrations in KSA and the UAE. The market which incorporates virtual visits, mHealth, and distant patient observing are projected to reach $536.5 million by 2025 in the UAE at a yearly development rate of 28.2 percent. In Saudi Arabia, the market is projected to reach $415.4 million enrolling development at a 24.2 percent CAGR north of 2019 figures.

In the aftermath of the pandemic, telehealth’s degree is augmenting as social distancing has provoked an unexpected interest in contactless medicine and made it a significant innovation to assess, oversee, and follow patients without in-person assessments.

Government-led Digital Health Initiatives

Public-private partnership models, as well as consumer-centric services, have increased and all contributed to the increased telehealth demand in Saudi Arabia and the UAE.

The Digital Health Strategy 2018, launched by KSA, and the Innovation Strategy 2019-2021, launched by the UAE, have been the chief drivers of digital healthcare transformation in each of the countries.

Both nations have prioritized preventive care and wellness to boost investment toward social determinants of health (SDOH) projects, resulting in immense growth prospects for companies operating within the telehealth sector.

Telehealth Legal Regulations in the UAE and Saudi Arabia

UAE

At the federal level, the extension of Cabinet Decision No. 40/2019 on the Implementing Regulation of Federal Decree-Law No. 4/2016 on clinical risk (“ICT Health Law”), named “Controls and Conditions of Providing Remote Health Services” (“Federal Telehealth Regulations”) explicitly covers a scope of telehealth administrations including:

  • Distant clinical interview and solution
  • Remote prognosis
  • Remote clinical observing and mediation

The Abu Dhabi Department of Health’s (“AD DOH”) Standards for the Provision of Tele-Monitoring Services apply in Abu Dhabi, and the “Dubai HA Standards”, or Dubai Health Authority’s Principles for Telehealth Services are the vital pieces of guideline/strategy to be alluded to.

There are additional guidelines that apply explicitly to suppliers situated inside the Dubai Healthcare City free zone in the UAE, explicitly Health Data Protection Regulation No 7 of 2013.

KSA

Across Saudi Arabia, the pertinent authorities have given choices, methods, and rules to manage the utilization of telehealth. This incorporates but is not restricted to the following:

  • Dated 25/04/1441H, the Ministry of Health Decision No. 7/88is an authority instrument that supports KSA’s other telemedicine law, the Regulation Governing Telehealth
  • The country’s earlier telemedicine law or “Telehealth Regulation” also dubbed the Regulation Governing Telehealth issued by the National Health Information Center (“NHIC”)

The Telehealth Regulations require that an administration organization direct and screen telemedicine and is the Saudi Telemedicine Unit of Excellence, which will work inside the Saudi Health Council’s NHIC.

Legal Challenges That CTOs Need to Consider

Most people do not widely understand the role of a chief technology officer (CTO), but it is one of the most crucial of all C-suite positions. CTOs are tasked with various duties in pursuit of a variety of abstract goals, which usually include driving innovation, identifying new technologies that are entering the market, and managing all IT operations.

The digital transformation has begun to redefine the role of the CTO and companies are seeking to ensure that it is in line with business priorities. This means the responsibilities of the CTO are changing drastically and being impacted by new legal regulations. As a result, it’s crucial that whatever innovation they are championing is be compliant with the law of the land.

One of the legal challenges that CTOs face is in the collection, storage, management, and protection of their clients’ information. They must prevent any kind of cyber threat using digital solutions and platforms that are legally compliant with the law.

Legal Issues That Need to Be Prioritized

Digital transformation significantly impacts IT security, regulation, data protection, and contract design. CTOs should consider the following legal issues:

  1. Compliance
  2. Intellectual property protection
  3. Data security

Intellectual Property (IP) Law

The key components of IP law that CTOs need to consider during the digital transformation are as follows:

  • Trademarks
  • Copyrights
  • Trade secrets

A trademark is a distinctive name, logo, or symbol used to distinguish one product or service from another. Trademarks allow potential customers to evaluate the reputation of the manufacturer or service provider.

Original artistic works, such as music and film, are often protected by copyright. Authors have exclusive rights to reproduce and distribute copies publicly, create derivative works, and perform their work. However, to obtain the initial copyright they are entitled to under common law, the author must register their work with the relevant authority.

A trade secret refers to a legally protected piece of information that a company doesn’t wish to disclose to the public. Such secrets include:

  • Formulas
  • Processes
  • Patterns
  • Compilations
  • Programs
  • Methods
  • Devices
  • Techniques

Contract Law

Digital transformation carries risks that business owners and CTOs must be aware of. Digital servers and independent software developers are two examples of these risks.

CTOs should consider encryption software, train employees about the safe storage of proprietary information, and use non-disclosure agreements (NDAs) to ensure that no information is leaked out.

Compliance

As a result of digital transformation, companies are rethinking how they relate to and serve their customers. Many companies focus on collecting, storing, and using customer data. These murky legal waters need to be carefully traversed.

When implementing digital transformation, the concerns of CTOs should revolve around:

  1. Data mining and control
  2. Use of data for advertisement
  3. Data protection and compliance

Companies must clearly distinguish between personal and non-personal information to comply with data protection laws. Additionally, they should also adhere to all applicable state and industry regulations when storing user information. To ensure they are adhering to all applicable codes of conduct, a global company may want to consult with an experienced law firm.

The Evolving Role of the CTO

The high rate of advancement in technology has led to a significant transformation of the role of the chief technology officer. To perform their role effectively, the CTO must exemplify adaptability in the face of the changing technological landscape and prioritize the integration of IT strategies within the company’s brand strategy.

Consequently, a well-evolved CTO understands that their job description fits neatly within flexible parameters. What’s more, in order to help the company grow, a CTO must be willing to step outside their comfort zone. The COVID-19 pandemic has had a significant impact on the CTO’s role over the past two years, requiring them to operate in a state of constant evolution to ensure company survival.

How Tech Is Impacting Businesses in the UAE and Saudi Arabia

With the UAE having one of the world’s highest rates of Internet penetration, the pandemic has spurred a rise in e-commerce activity across the country. E-commerce ventures in the United Arab Emirates have more than doubled within the last two years. When it comes to cutting-edge digital transformation technologies, the United Arab Emirates and Saudi Arabia are the global leaders.

As a result of Saudi Arabia’s strong IoT adoption, four technologically advanced economic cities have emerged. This has been an essential part of Saudi Arabia’s efforts to diversify its economy and attract foreign direct investment.

Technological advancements have bolstered the Middle East’s economy in recent years. The government and private sector have all made significant investments in 5G, AI, IoT, blockchain, cloud computing, and cyber-security.

The United Arab Emirates and Saudi Arabia have invested heavily in artificial intelligence, positioning them at the forefront of the fourth industrial revolution. It is expected that the Kingdom of Saudi Arabia will remain a global leader in the implementation of smart city projects thanks to big data and artificial intelligence (AI).

Consumers in the United Arab Emirates have taken notice of the growth of e-commerce in recent years. Visa and MasterCard have grown in prominence, and more than half the global population now use their cards to make purchases of all kinds. As a global consumer market, the UAE has always been a major player in the industry.

A Good CTO in the MENA Region Must Be Innovative

In the Middle East and North Africa, digital technology is changing the way businesses and governments operate. This increased use of technology is enhancing the region’s economic growth and competitiveness. As a result of the Middle East’s insatiable appetite for innovation, the region is well-positioned to take advantage of the latest digital opportunities.

CTOs must have the vision and foresight to see how new technologies can help their organizations compete more effectively in the region. Today’s top-performing CTOs can’t just sit back and watch as their competitors embrace new technologies.

With new technologies, it’s essential to keep an eye on the customer. An increasingly tech-centric, collaborative, and agile organization necessitates a shift in the role of technology leadership.

It may become challenging for Chief Technology Officers to comply with all legal requirements that arise during digital transformation, especially within the Gulf region. Just as technology changes, numerous laws are amended, and thus at times, CTOs may not be up to date with the latest legal requirements. In this case, it is crucial to work with an experienced law firm that guides you accordingly throughout your business’s growth stages.

Data Protection and Compliance in the Ed-Tech Industry

Recent global developments have made cybersecurity crucial for all sectors. Ed-Tech has experienced tremendous expansion at all educational levels in the last few years due to the pandemic.

Today, nearly every student has at some point attended their lessons using online meeting platforms. These Ed-Tech platforms are helping to gradually digitize the education sector. But as more educational institutions transition to virtual learning, Ed-Tech privacy has become a top concern for students, parents, professors, and school administrators. This means that while Ed-Tech businesses continue developing and providing fantastic learning solutions, they must prioritize student privacy.

Data privacy is a major issue for everyone, but it becomes much more important when dealing with the personal data of minors.

These challenges are associated with the shift to adopting digital tools to enhance education. Ed-Tech has emerged as the primary target of regular, intense cyber-attacks, which are growing exponentially each year. Invasion incidents usually occur because of a lack of data security and privacy implementation. Even a business with strict data security guidelines might fall victim to cyber assaults. This results from the fact that most Ed-Tech initiatives include several partners such as third-party vendors and these associates might not always adhere to the same standards.

It is crucial to maintain thorough protection against any external data theft. As such, Ed-Tech providers should comply with all the laws and regulations governing data protection.

What is Ed-Tech?

Ed-Tech can be defined as the concept of using IT resources in the classroom to create a more interactive, inclusive, and personalized learning environment.

Tablets and even robots that can take notes and document lectures for ill students have replaced the bulky desktop PCs that were previously the standard in classrooms.

The proliferation of Ed-Tech tools is transforming classrooms in several ways. Ed-Tech robots make it simple for students to stay interested through engaging learning activities while IoT devices are praised for their capacity to turn any space into a digital classroom for kids.

How is Ed-Tech Used?

Ed-Tech is a heavily debated subject. There are worries that Ed-Tech is a move to phase out certain in-class tasks to cut expenses because a sizable component of the educational system is unionized.

Ed-Tech developers highlight technology’s capacity for improvement, which frees the instructor to take on more of a facilitator role.

Due to time limits, it can be challenging for a teacher to follow the curriculum, stay up with lower-level students, and keep the class’s top students interested in their work. Ed-Tech can potentially improve results for both the class as a whole and individual students by automating the evaluation of aptitude and modification of difficulty.

There have been two phases of technology deployment in the classroom. The first was the addition of hardware to the lecture hall and the second was the introduction and development of various forms of education-enhancing software. Many of these applications are cloud-based and use algorithms to determine how quickly or slowly to move a learner along various learning objectives based on studies in education.

Ed-Tech Trends Across the UAE and Saudi Arabia

As schools quickly adopted technology to address limitations on in-classroom instruction during the COVID-19 outbreak, the education landscape in the Gulf underwent a seismic upheaval. The Middle East’s education technology market is now worth $350 billion and is expected to grow to $3.2 trillion by 2025.

The UAE’s favorable growth prospects for the Ed-Tech sector are only made possible by a highly skilled workforce and a government that supports education and facilitates the ease of doing business.

Online education was viewed as “supplemental aid” until the pandemic. The same regulatory organizations today approve of completely digitized education and enable, encourage, and support it in both early childhood education and higher education.

The experience of the pandemic has enabled ministries to fully understand the potential benefits of Ed-Tech, as well as its drawbacks. Although governments initially forced it upon ministries due to public health concerns, it has created new opportunities.

As things settle into the new normal, most educational institutions in the Gulf plan to run more like digital businesses.

In this new context, ICT will operate in a mixed learning environment as a “cognitive partner.” Institutions will rely on digital technologies to engage students, handle homework and exams, and conduct digital versions of auxiliary activities like virtual campus tours and recruitment.

Broad-reaching digital efforts are being implemented by Gulf educational institutions. This includes a greater focus on automation and process re-engineering for digital campuses, quick absorption and acceptance of digital education technology, and improved digital data governance and trust.

Artificial intelligence is another promising field within the education sector. Some of the forward-thinking institutions in the Gulf are already exploring more sophisticated use cases,such as personalized and adaptive learning. In contrast, the early use cases concentrated on automating processes like attendance monitoring and test grading.

Ed-Tech Regulations in the GCC and How Companies Can Protect Themselves

The growing frequency of data breaches in the Gulf has heightened the debate over data protection and privacy and sparked various initiatives in both the public and commercial sectors.

Ever since the General Data Protection Regulation (GDPR) was adopted by the EU, businesses in the GCC have been striving to implement policies and methods to comply with these new regulations. Thanks to technological advancements, data is in more demand and more readily available than ever before. However, as recent events have demonstrated, malicious people can use personal data for political and economic purposes.\

GDPR has highlighted the interconnectivity of our digital world by bringing data protection issues to a global audience. The GCC has passed measures to guarantee compliance with the GDPR and other global data protection rules.

Therefore, Ed-Tech companies in the GCC are in a better position to protect themselves if they adhere to GDPR laws and other national-level regulations on data protection.

With the greater focus on data privacy and regulations in the GCC, Ed-Tech companies must take stringent measures to ensure they are compliant with the laws and regulations governing data protection.

We give our clients strong substantive expertise in all facets of the education industry together with the most effective business and litigation strategies. We concentrate on the specific requirements of fast-growing businesses involved in the creation of cutting-edge educational tools, resources, and solutions, and we also work with the universities and other organizations that use these technologies.

An Overview of IPO Readiness and Future Trends in the GCC Region

There has been a recent surge of mega listings across the Gulf, driven by Saudi Arabia and the United Arab Emirates. Investors from around the world are increasingly attracted to the promise of substantial dividends from promising industries and innovation across the region.

Nations in the GCC region are actively taking advantage of the increasing demand and high energy prices to publicize state-owned businesses. Are you planning to be a part of the booming Initial Public Offering shift? Will your company benefit from going public? Are you IPO-ready? Here is all you need to know about IPO readiness and upcoming trends in the Gulf region.

Why An IPO?

An initial public offering does the following:

·        It provides real-time access to finance.

·        It improves the public’s view of a company by making it more credible and visible.

·        It makes it very easy for a company to establish share option plans for its workforce. These plans will serve to motivate employees and help the company find good staff.

·        It also enriches capital markets with fresh concepts and investment possibilities.

Putting together an IPO requires careful planning and preparedness.

What is IPO Readiness?

When a business is IPO-ready, it has all the systems in place to comply with the legal requirements for selling stock to the public. These systems include:

·        Internal controls

·        Financial reporting

·        Governance

This information will be available to investors on demand from when your business goes public and throughout the IPO process. Investors, analysts, and the media will closely examine your company’s internal operations and financial data. Moreover, new public firms must adhere to a mass of additional reporting and legal requirements for the duration of their existence.

Why You Need IPO Legal Cover

It is undeniable that you will require competent legal representation if you are commencing the process of making your business public. There are many different aspects to this process that your company must be acutely aware of. If you forget any one of them, the results could be unfortunate.

Legal and professional fees will be recurring expenses, however they are imperative in developing and managing the following:

·        Putting together, submitting, and finishing the listing application.

·        Providing guidance on the dangers and laws surrounding the IPO transaction, such as publicity and transparency.

·        Giving direction on the functions of the leading regulatory players, exchange listing requirements, and securities regulations.

·        Counter-examining and confirming everything to ensure no problems would subject the company to lawsuits after the IPO.

IPO Trends in the Middle East to Look Out For In 2022 And Beyond

Bloomberg data shows that IPOs in the Middle East have raised $11.4 billion during the first five months of this year. This is more than any other year’s first six months. Since petrochemicals company Borouge started trading in Abu Dhabi earlier this month – raising $2 billion – the sum will only go up.

For this year, the energy industry is one of the few bright spots for IPOs. This is because oil prices have gone up by 50%, helping Gulf economies and equity markets. Share sales in Europe are at their lowest level in 20 years because of high inflation, rising interest rates, and a depressed economy in general. In contrast, the Middle East has more or less managed to avoid these problems and has continued to successfully attract investors from other countries.

Trends Beyond the Oil Sector

In recent years, diversification has become a top priority for GCC governments. The recovery is being driven by growth in areas other than oil. Sectors like monetary services are doing well since the pandemic. The key to Saudi Arabia’s economic regeneration is its vast domestic market and the government’s commitment to big projects.

Enterprises praise their forward-thinking policies and methods. With half of the world’s people only an eight-hour flight away, the Middle East has now become a true economic powerhouse. It serves as a prime mover for trade, exchange, advancement, and revenue generation.

GCC trade growth will be bolstered by the hope that supply chain slowdowns and cross-border activity delays are set to improve in the next few quarters. If you have been thinking of an IPO, this might be the right time to start getting ready.

In summary

The proliferation of 5G technology and the growth of online platforms and marketplaces are leading to new ways to run successful businesses. As a result, the regional business environment will change in a way that will significantly affect economic patterns and social dynamics. The GCC’s non-oil industries will continue to lead the economy over the next ten years, giving the regional markets and stock prices an immense boost.

What does this mean for you? It simply means that you ought to prepare adequately for that coming IPO. Having the right legal support team by your side is key to making this happen.

The Push For Alternative Energy In The GCC

The worldwide energy industry is headed towards an extraordinary excursion and the Gulf Cooperation Council (“GCC”)  is pushing to be a pioneer in this rising market. The United Arab Emirates (“UAE”) and the Kingdom of Saudi Arabia (the “Kingdom” or “KSA”) are two of the central figures in the movement toward utilising more sustainable and environmentally friendly energy sources, and both have made large investments in research and development for these fields.

From NEOM to ADNOC, the UAE and Saudi Arabia are working to establish themselves as leaders in the global energy market, and it is clear that alternative energy will play a major role in their plans. These two nations have access to the necessary technical expertise and financial resources to drive a more clean-energy strategic focus in the future.

 

GCC Clean Energy Drive Requires $50b for Grid-related Speculations

The GCC would require approximately $50 billion by 2026 to boost the proposed increments from renewables, as highlighted in a recent white paper, ‘Clean Energy — Going Beyond the Grid’.

Improvements in sustainable power innovation are one of the critical mainstays of the UAE’s Operation 300bn and Saudi Arabia’s Made in Saudi Initiative, which are both national plans that envision improving the contribution of renewables in the energy blend of their nations.

The UAE National Energy Plan 2050 calls for clean energy to achieve 50% of the country’s complete energy blend by 2050. This would lower the carbon footprint by 70%, requiring an investment of $190 billion along the way.

Two of the biggest single-site solar plants in the world are currently being created in Abu Dhabi and Dubai. Both will add to the developing UAE green economy while advancing the nation’s status as a global renewable energy player.

Furthermore, Saudi Arabia is focused on deriving 50% of its energy from renewables by 2030 and the Kingdom also intends to spend up to $50 billion on this sector by 2023. Under the normal expansion in grid-related ventures, the transmission and circulation gear industry are supposed to top $312.8 billion universally by 2026.

 

Minerals Projects

Inside the unique energy sector, organisations with a history of upgrading power age and energy stockpiling arrangements are assuming a significant part in empowering the practical creation of minerals universally. This is subsequently assisting the world to decarbonize more quickly.

Perhaps the best illustration of that, is in Saudi Arabia, where at the height of the COVID-19 pandemic in 2020, consent was given to supply a 45 MW power plant to the biggest gold venture for the Saudi Arabian Mining Company.

The Mansourah-Massarah plant uses a crossover of motor innovation and solar power, and Finnish energy company Wärtsilä has the mandate to introduce six power motors — working in close coordination with project worker for hire, Larsen, and Toubro and EPC project worker, Outotec.

The task is important for Saudi Arabia’s Vision 2030, which plans to expand revenue sources for the Saudi economy by moving away from oil dependency and increasing the mining of under-exploited assets such as gold.

 

Changes to the Legal and Regulatory Framework Governing Clean Energy

The GCC’s ambitious plans for alternative energy will have major legal implications, both in terms of the regulatory frameworks that need to be put in place and the contracts that need to be negotiated.

Accordingly, a coordinated approach to alternative energy may need to be taken by the GCC and the applicable GCC national laws and regulations may need to be further developed and enhanced in order to become a suitable regional market for alternative energy.

 

Saudi Arabia

The Ministry of Energy (“MoE”) has introduced the National Renewable Energy Program (“NREP”), which aims to diversify the Kingdom’s energy resources. Several incentives were issued to promote investments into the renewable energy projects under the NREP, which include direct foreign ownership and land incentives that include subsidized leases for projects. This will further entice foreign entities to invest in the Kingdom’s renewable energy schemes, while also resulting in the formation of innovative technologies within the renewable energy sector that include solar photovoltaic technologies, waste to energy technologies, wind energy technologies and concentrated solar power technologies. All such renewable technologies have been identified and developed under the NREP to further diversify the Kingdom’s local energy supply and to further encourage foreign investment along with public-private participation within the energy industry.

To that end, MoE, in collaboration with the Ministry of Industry and Mineral Resources and Non-oil Revenue Development Center, introduced further initiatives that allow companies whose activities involve renewable energy and solar power plants to apply for and obtain industrial licenses. These initiatives aim to support the renewable energy industry and economic growth while enhancing the Kingdom’s capabilities regarding renewable energy, and to achieve an optimum energy usage in electrical productions. Furthermore, the Gulf Cooperation Council (“GCC”) grants industrial projects with benefits and facilities to promote the industrial sector and to attract investments to countries in the GCC under the scope of the Common Industrial Regulatory Law of the GCC Countries (the “Law”). This Law grants companies’ certain exemptions from customs duties in relation to manufacturing and industrial projects. Such exemptions are aimed to enhance investments and increase production and adoption of renewable energy in the KSA.

In addition to having solar power plants, KSA’s 2030 target includes the usage of the aforementioned Solar Photovoltaic (“PV”) Systems. The Water & Electricity Regulatory Authority (“WERA”) issued a regulatory framework for the use of Small-Scale Solar PV Systems. The framework aims to promote the use of Small-Scale Solar PV Systems and ensure efficient and safe production, installation, operation, and maintenance of these systems within the Kingdom. Under the regulatory framework, customers may build/possess and operate on a premises in which a Small-Scale Solar PV System may be installed. This Solar PV System helps convert solar energy into electricity and gives a more efficient way of obtaining electricity using renewable energy, thus, reducing the usage of oil and instead using a renewable energy source that does not emit carbon.

Moreover, the Kingdom has also introduced the Saudi Green Initiative (“SGI”) which works to combat climate change as its main goal while also aiming to offer significant investment opportunities for local and foreign investors in the energy sector in KSA. The SGI’s programs which include environmental protection, energy transformation and sustainability, aims to reduce carbon emissions and increase domestic usage of renewable energy. To that end, the kingdom developed cost-effective technologies for efficient carbon management, with the aim of eliminating gas combustion by 2030.

 

The UAE

The UAE has taken a leading role in the development of renewable energy in the GCC, and currently has the largest installed capacity of solar PV in the region.

The objective of the Dubai Clean Energy Strategy 2050 is for clean energy to contribute 25% of Dubai’s overall energy output by 2030 and 75 per cent by 2060. To achieve this, the Dubai Electricity and Water Authority (“DEWA”) has launched a number of initiatives, including the Shams 1 solar-thermal plant (100MW) and the Mohammed bin Rashid Al Maktoum Solar Park, which represents a total investment of AED 1.2 billion and is the largest single-site solar park in the world.

In addition to this, the Dubai Green Fund has been established to provide financing for renewable energy projects. The Fund is open to both local and international investors and offers a number of benefits, including tax exemptions and visa facilitation.

In the realm of transportation, the Dubai Supreme Council of Energy has initiated free charging, parking, and registration fees. The Dubai Autonomous Transportation Strategy also aims to have 25% of all trips made using driverless vehicles by 2030.

 

The Future

Ultimately, the GCC is at the forefront of the global energy transition, and its ambitious plans for alternative energy will have major legal implications.

In order to meet its renewable energy targets, the GCC will need to make significant changes to its current regulatory frameworks and invest in developing the infrastructure needed to support large-scale renewable energy projects.

The GCC is also likely to face challenges in relation to water availability and land use, as well as the need to develop a skilled workforce for the renewable energy sector.

Despite these challenges, the GCC is well placed to become a global leader in renewable energy, and its commitment to this transition will have far-reaching legal implications.

 

Ebaa Tounesi

Associate – Corporate & Commercial Practice

Emerging Trends of Saudi Arabia’s Sporting Industry

Entertainment and sporting events have not always been the first things that come to mind in relation to Saudi Arabia. However, in recent years the country has made great strides in developing its entertainment industry, with a particular focus on sports. This has been driven by several factors, including the country’s large and young population, and the government’s desire to build a more diverse and modern economy.

 

While the sporting industry in Saudi Arabia is still in its early stages of development, it is currently growing at a rapid pace. This is evident in the increasing number of sports facilities and events being held in the country and the growing number of Saudis participating in sports. In addition, the Saudi government has been investing heavily in the sporting industry, both in terms of infrastructure and supporting local athletes.

 

Key Developments in Saudi Arabia’s Sporting Sector

The Saudi government has taken a keen interest in the role of sports and sporting events in the country’s development. In line with its Vision 2030 reform agenda, the government has set out to increase participation in sports and improve the quality of sporting facilities and events within the Kingdom. This has led to many developments within Saudi Arabia’s sporting sector, including the ones outlined below.

 

Increase in Major Sporting Events

One of the most notable developments in Saudi Arabia’s sporting industry has been the increase in major sporting events being held in the country. Over the past five years, the country has hosted several high-profile sporting events, including the Saudi Arabian Grand Prix in 2021, the Joshua v Ruiz II – “Clash on the Dunes” in 2018 and the Saudi Cup international horse racing event in 2020. Saudi Arabia has now put forward its bid to host the FIFA World Cup in 2030.

 

The Introduction of ESports

Esports — competitive electronic gaming — is not recognised by many countries as a sport. This means it can be difficult for professional gamers to find an appropriate venue to compete at an international level. However, in recent years, Saudi Arabia has begun to nurture its own esports scene, which has included the establishment of the Saudi Esports Federation in 2017. In the summer of this year, the federation launched the Gamer8 Festival, which was a highly successful 8-week esports event held across Riyadh.

 

The Growth of Women’s Sport

The Saudi government has taken a keen interest in increasing women’s participation in sports over the last decade. In 2012, the nation sent its first female athletes to the Olympic games and from 2017 onwards, women have been allowed to compete in sports tournaments held in the country. 2020 saw the launch of the Saudi Women’s Premier League, ushering in a new era for women’s football in the Kingdom.

 

The Rise of Sports Tourism

The Saudi government is also looking to develop the country’s sports tourism industry. In 2018, the Kingdom hosted the first season of the World Boxing Super Series at King Abdullah Sports City in Jeddah, which attracted boxing fans from all over the world. The country is also set to host the Spanish Super Cup semi-final in 2023 and the Formula E Diriyah E-Prix early next year. These types of events are not only a boost for the sporting industry, but also for the country’s economy as a whole.

 

Savvy Games Group Strategy

In September 2022, Saudi Crown Prince Mohammed bin Salman announced the government’s goal of becoming a global hub of games and esports, with the launch of the Savvy Games Group Strategy. This ambitious plan includes a focus on developing the local games industry, as well as supporting Saudi Arabian gamers to compete at an international level. As part of the plan, the government will establish 250 games companies in the country by 2030, creating over 39,000 jobs. In total, government investment in this strategy is expected to reach SAR 142 billion by 2030.

 

Next World Event

The Saudi Esports Federation just hosted the inaugural Next World Forum in September 2022. It was a two-day event that saw a number of prominent Esports industry speakers gather to discuss the future of the sector. Among them were Grant Johnson, the chairman and CEO of Canada’s Esports Entertainment Group and Chester King, the vice president of the Global Esports Federation. The forum was a huge success, with over 1,000 people in attendance from across the globe.

 

What Does the Future Hold?

The sporting industry in Saudi Arabia is still in its early stages of development. However, the sector is growing at a rapid pace and the government is fully supportive of its growth. This is evident in the many developments that have taken place in recent years, including the increase in major sporting events, the arrival of esports and the active promotion of women as both sports spectators and competitors.

 

In addition to this, the Saudi government is keen to develop the country’s sports tourism industry as part of its move to diversify the nation’s economic activity. With the government’s continued support, it is likely that the sector will continue to grow in popularity and size, welcoming a new era of sports in Saudi Arabia.

Managing Construction Disputes in Saudi Arabia

The construction industry in Saudi Arabia has experienced significant growth in recent years, with numerous infrastructure projects and real estate developments underway across the Kingdom. From tourist attractions to transport projects, the Kingdom is undergoing a transformation fuelled by rapid infrastructure development.

While this trend presents significant opportunities for investors and developers, it has also given rise to its fair share of challenges, including construction disputes. These disputes can occur due to a variety of reasons and can often lead to costly and time-consuming legal proceedings.

Effective management of construction disputes is therefore crucial for the success of any construction project in Saudi Arabia. This article will provide an overview of common types of construction disputes in the Kingdom and examine the available dispute resolution methods.

Common Types of Construction Disputes in Saudi Arabia

It’s an unfortunate reality of the construction industry that disputes are a frequent occurrence. However, the root cause of many of these disputes can be narrowed down to several common issues. Here are the main types of construction disputes, which commonly arise in Saudi Arabia.

  • Design Faults and Errors. These types of disputes may arise when the construction design does not meet local regulations or when the design fails to match the specifications agreed upon in the contract.
  • Delay Claims and Disputes. Delays can be triggered by a range of issues, such as adverse weather conditions, modifications to the scope of work, or the late delivery of equipment or materials. This can impact the timeline of a project and lead to claims for compensation or other remedies.
  • Scope of Work Disagreements. Disagreements about the scope of work can lead to disputes during the completion of construction projects. These disputes can occur when relevant parties disagree over the interpretation of the contract, or when there is unclear contract language, or an unexpected change in the scope of work.
  • Payment and Billing Disputes. Disagreements over payment are common in Saudi Arabia’s construction industry, with contractors and subcontractors sometimes coming into conflict over compensation for unpaid work or additional work that was not included in the original contract.
  • Contractual Obligation Disputes. Finally, contractors and developers may disagree about the terms of a contract, such as payment schedules or other contractual obligations, leading to costly and time-consuming disputes.

Dispute Resolution Methods in Saudi Arabia

When construction disputes arise in Saudi Arabia, there are a variety of dispute resolution methods available for the parties involved to resolve their disagreements. These methods can include litigation in the courts or alternative dispute resolution (ADR) methods, such as mediation, arbitration, and expert determination. Here’s a brief overview of each of these dispute resolution methods:

  • Litigation in the Courts. The most traditional method of resolving disputes is through litigation in the courts. The dispute is presented before a judge, who decides on the outcome of the case. Litigation can be a time-consuming and expensive process and may not always result in a favourable outcome for all parties.
  • Mediation is an ADR method in which a neutral third party, the mediator, assists the parties in reaching a mutually acceptable solution. Mediation is voluntary and confidential and can often result in a faster and more cost-effective resolution to the dispute.
  • Arbitration is another ADR method in which a neutral third party – the arbitrator – listens to both sides of the dispute and renders a binding decision. Arbitration can be faster and less expensive than litigation, but it can also result in a limited ability to appeal.
  • Expert Determination. Expert determination is an ADR method in which an independent expert is appointed to determine the outcome of a dispute. The expert’s decision is binding, and the process is often faster and less formal than other ADR methods.

Resolve and Prevent Disputes for a Stronger Construction Industry

Construction disputes in Saudi Arabia can be costly and disruptive for all parties involved, delaying the completion of projects, and causing financial losses. However, construction disputes in the Kingdom are an unfortunate but common reality for stakeholders within the industry. By understanding the common types of construction disputes, stakeholders can take proactive steps to mitigate the risk of disputes occurring in the first place.

Additionally, by utilising the appropriate dispute resolution methods available, such as mediation or arbitration, stakeholders can resolve disputes more efficiently and effectively than through traditional litigation. If you need help with a construction dispute in Saudi Arabia, it is best to seek legal advice from a qualified expert who can guide you through the process and help you reach a resolution.

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