Establishing an International Campus or Program in the UAE ... Point Documents/… · Establishing...
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Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and Labour Law Considerations Wednesday, September 9, 2015
Transcript of Establishing an International Campus or Program in the UAE ... Point Documents/… · Establishing...
Establishing an International Campus or Program in the UAE and Qatar: Corporate, Regulatory, Immigration, and
Labour Law Considerations
Wednesday, September 9, 2015
Ross Barfoot Clyde & Co Abu Dhabi, UAE [email protected] Samantha Ellaby Clyde & Co Dubai, UAE [email protected]
Speakers
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Context: GCC
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Legal Structures
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Choosing an Appropriate Structure
Expensive Time consuming Do you have resources and mindset? Local knowledge? PropCo partner?
Self establishment
NYU/INSEAD/Paris Sorbonne Identifying suitable sponsor Costs and other resources Tie in with wider Government aims
Sponsored entry
Due diligence on JV partner Alignment with JV partner Operational issues Brand protection
Joint Venture
Due diligence on owner Protection of standards and reputation Ability to exit if things go wrong Common K-12 and HE model Brand protection
Licensing model
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Typical Structures – Licensing Model
Foreign Provider
Investor
OpCo PropCo Management Agreement Licence Agreement
MOU Preconstruction Agreement
Lease
International Middle East
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Typical Structures – OpCo/PropCo Model
Foreign Provider Investor
OpCo PropCo/ Landlord
MOU Preconstruction Agreement
Lease
Campus Land
Premises
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Typical Structures - Branch
Foreign Provider
Landlord OpCo as Branch Office
Lease
UAE Local Agent
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Typical Structures - LLC
Foreign Provider (49%)
Landlord OpCo as LLC Lease
National 51% Shareholder
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Typical Structures - JV
Foreign Provider Investor
OpCo PropCo/ Landlord
JV Agreement
Lease
Campus Land
Premises
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Dealing with Local Partners / Investors
Different perspectives
Non confrontational relationship – co-operative
Aligned interests
Collaboration
Recognise “issues” early New to education sector? MOU
Troubleshooting
What will the local partner contribute?
Don’t underestimate the value you bring
Land?
Value
Academic quality Profit motive Financial vs Academic control Time involved
Realistic Expectations
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Generalised Regulatory Process
Preliminary Application
• Academic Plan • Curriculum
Preliminary Approval
• Land allocation • Design • Construction
OpCo Incorporation
Pre-Opening Inspection
• After construction • Before campus
opens • Temporary Licence
Post-Opening Inspection
• 1-2 years after • Education Licence
Preliminary Application
Commercial Licence
Application Inspection Commercial
Licence Education Licence
Application Education Licence
Relevant Education Regulator (KHDA/ADEC/MOHESR/MOSA/ACTVET/SEC) Commercial Licensing Authority (eg Onshore or Free Zone Authority) Approval Civil Defence Health Authority Food Control Authority
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Employment Issues
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Top 10 Things you need to know about Employment and Immigration in the UAE and Qatar
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1. UAE and Qatar are Unique
Seventh highest GDP per capita 17% local population
UAE
Highest GDP per capita in the world Around 10% local population
Qatar
Unique position = Strict immigration rules Nationalisation policies
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2. Immigration
Visa Requirements
• Mandatory for all visiting and/or working
in the UAE and Qatar
• Various visas available depending on:
o Length of stay
o Place of work
o Activity
• Business visas
o Limited purposes
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3. Contracts of Employment
Contract with local entity
• Prescribed form • Supplementary company
contract • Includes international
“secondees” • Fixed Term / Limited Term
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4. Labour Laws
Mandatory application
Effect of supplementary contract terms
Specific laws and regulations for education sector
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5. End of Service Gratuity
End of Service Benefit due upon termination
Statutory formula based on length of service and basic salary
Reduced / not applicable in certain circumstances
Interaction with pension
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6. Fixed-Term Contracts
• Requirement for teachers in private sector
• Implications o Terminate upon expiry o Compensation for early
termination
Fixed term contracts
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7. Trade Unions
Legal Status of Trade Unions
• UAE: o Illegal o Consequences: arrest, deportation
• Qatar: o Allowed under Labour Law o Worker’s committees or Joint
Committees
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8. Cultural Matters
Importance of sensitivity to local rules
• Co-habitation
• Dress code
• Religious sensitivity (e.g. Ramadan)
• Considerations: o Employment contract benefits o Accommodation o Policies
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9. Nationalities
• Order of preference for employment o UAE Labour Law – nationals, other
Arabs, others o Qatar Labour Law – nationals, others o Nationalisation
• Visa considerations o Certain nationalities may face issues o Policy is often unofficial and subject to
change
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10. Social Media
• Restrictions on what can and cannot be said o Cybercrime laws o Defamation o Insult to individuals or religion
• Examples o Insulting colleague over Whatsapp o Arrest of US employee for posting
derogatory statements on Facebook regarding employer
• Steps for employers o Policies o Monitoring (with consent)
Please Contact our Speakers for More Information
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Ross Barfoot Clyde & Co Abu Dhabi, UAE [email protected] Samantha Ellaby Clyde & Co Dubai, UAE [email protected]
Rebecca Ford Clyde & Co Dubai, UAE [email protected] Emma Higham Clyde & Co Doha, Qatar [email protected]
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