Participating in the resurgence of the greatest economy on earth while pursuing a credible opportunity to secure permanent residency status for you and your immediate family seems a double-win. The economic growth it generates while providing entry to entrepreneurial immigrants with substantial resources of their own would certainly seem to be good for America as well.
Feb 16, 2018 2:50 PMWith possible changes to US immigration law on the horizon, aspiring immigrants to the Land of Liberty may have a feeling of uncertainty at present. A tightening of legal immigration may be part of a deal in Washington, DC designed to address illegal immigration.It is impossible at the time of this writing to know exactly how immigration law will change, or if it will actually change at all. But, we do know of one immigration law that already meets the requirements of the US President, as publicly expressed during negotiations thus far, with a program that uses merit-based criteria and which provides economic growth: the law authorizing the issuance of EB-5 Visas to Foreign Investors.Under the law, Foreign Investors who invest a minimum amount of capital in such a way as to create and/ or maintain ten or more US jobs have the opportunity to apply for a Green Card through the facility of the EB-5 Visa program. The minimum level of capital the Foreign Investor has to commit is determined by the classification of the targeted region of the investment itself.
Participating in the resurgence of the greatest economy on earth while pursuing a credible opportunity to secure permanent residency status for you and your immediate family seems a double-win. The economic growth it generates while providing entry to entrepreneurial immigrants with substantial resources of their own would certainly seem to be good for America as well.If you are interested in investing in the US economy (either directly or through a reputable Approved Regional Processing Center) and seeking a Green Card, contact JHI today for more information on the EB-5 (Investor) Visa program -- firstname.lastname@example.orgWith offices in New York, NY & Jeddah, Saudi Arabia; and, additional on-the-ground resources available in the UAE, India and Singapore, JHI is in an ideal position to be of assistance and we will be happy to help.
Dec 19, 2017 6:30 PMThe Law Firm of JASON HUF INTERNATIONAL, pc (JHI) will close the doors of its New York HQ Office for the "High Holidays" of Christmas and New Year's Day starting Thursday, December 21, 2017 at 5:00pm.JHI will resume regular business hours on Tuesday, January 2, 2018. As usual, office visits in 2018 will be by Appointment Only.During the Holiday Season, the Jeddah, Saudi Arabia office and the Khalil Khazinar Law Firm will remain open. In the event of an urgent matter arising during the High Holidays, Mr. Huf can be reached directly by e-mail.From everyone at JHI, Merry Christmas!! And best wishes for a happy, healthy and prosperous New Year!
Dec 14, 2017 6:28 PMCommensurate with its Gulf Cooperation Council (GCC) obligations, the United Arab Emirates (UAE) will fully-implement the Federal-level imposition of a Value Added Tax (VAT) of 5% on most goods and services, and associated registration and reporting requirements, along with Excise Taxes on certain goods (50% on "fizzy drinks" & 100% on energy drinks and tobacco products), effective January 1, 2018.
Some industries are exempt from responsibility for VAT by statute, such as certain transportation services and basic healthcare providers. Real estate transactions within the first three years (thus far) of the law's enforcement are also exempt from VAT in the UAE.
Companies doing business in any of the Emirates who are not in an exempted industry and whose turnover exceeds the statutory threshold (AED 375,000 over a period of 12 months) were required to register for VAT by December 4, 2017, or face a penalty. In future, companies whose turnover does not yet exceed the statutory threshold will have to become compliant within one month of achieveing such turnover during a 12 month period. Companies who are not yet required to register and report for VAT may apply to do so voluntarily, provided their 12 month turnover exceeds AED 175,500. If a company anticipates exceeding the mandatory threshold in the future, then voluntary registration may be advisable so that a future 30 day deadline will not present potential difficulties.
Initial estimates are that approximately 350,000 companies will have registered for VAT in the UAE by the statutorily stipulated date. An exact figure is not yet available.
Reporting/ filing of returns will be performed on a quarterly basis. This may precipitate retaining Registered Tax Agents (and, JHI recommends that reporting companies retain such professional services).Naturally, being a new law, regulations, clarifications and other factors affecting implementation of and compliance with the new laws (UAE Federal Laws 7, 8 & 13 of 2017) remain subject to change at this stage. The UAE Ministry of Finance provides this page to provide basic information, timely updates and a starting point for researching and tracking the new tax regime:https://www.mof.gov.ae/En/budget/Pages/VATQuestions.aspx
One issue that begs for near-term clarification is the question of taxability of Free Zone entities. At the time of this writing, the responsibility for actual payment of VAT by entities established in Free Zones, including "Financial Free Zones" (such as the Dubai International Financial Centre, or DIFC; or, the Abu Dhabi Global Market, or ADGM), remains somewhat unclear. For example, following current guidance from the Federal Tax Authority (FTA), the agency with primary responsibility for the enforcement of VAT, such entities should be registered for VAT if their turnover exceeds the mandatory threshold. On the other hand, by Emiri decree (issued under a recent Constitutional provision), a 50 Year Tax Holiday has been established for the ADGM (measured from the effective date of the underlying law).
The UAE Cabinet has not yet issued its decision identifying any "Designated Zone" (wherein established entities may receive at least some partial or limited form of exemption from VAT) as the law empowers it to do, and the issue of responsibility for payment by companies in Financial Free Zones involves something of a Constitutional question. However, as stated above, it is hoped that additional clarifications may be issued by the relevant authorities in the near future. It is also worth noting that the FTA's determinations/ decisions can be challenged through the courts, provided there is a credible legal basis for such a challenge.
Being a brand new area of law, such gray areas are to be expected. The drafters of the new laws concerning VAT certainly seem to have expected this, as certain mechanisms - such as the ability to challenge FTA policy decisions in court - are built into the new tax regime to ensure transparency and fairness (important factors in any healthy business environment) as and when important issues are sorted.
Thinking more globally, one wonders what this may do to the famously business-friendly reputation the UAE has enjoyed for decades. After all, "the (tax-free) UAE is the Place to Be" in the Gulf region. JHI believes that the imposition of the VAT, in and of itself, will not severly impact the UAE's positive business environment.
The imposition of VAT is a GCC-wide program, agreed upon by the member states. The level of tax will be 5% across the board, and goods and services exempt from the tax will be similar almost to the point of being mirrored from jurisdiction to jurisdiction. Compliance steps and associated costs should be roughly equal in each of the member states. And, the timing of full VAT implementation in the member states should coincide (the Kingdom of Saudi Arabia, for example, is also introducing its new VAT in January of 2018). So, this should not significantly reduce the attractiveness of the UAE for investors, nor does it seem likely to impact the UAE's role as a gateway into the other GCC economies (such as Saudi Arabia - the largest economy in the GCC).
As a GCC member state, the UAE has agreed, and is obligated, to impose VAT. With recent fluctuations in the price of oil and the recent military build-up, in addition to the maintenance of basic services, additional revenues are needed to keep the national debt at a sustainable level.
The broadening of the UAE's economy in recent years has provided an opportune situation wherein the imposition of VAT (as opposed to other taxes and/ or fees) makes sense. On paper, it seems the best available method of helping to keep the UAE's fiscal ship steady. Although it will contribute an additional layer of expense onto the costs of living and doing business in the UAE, the UAE enforces no other tax and the compliance costs associated with the UAE's regulatory environment are among the least burdensome in the world. As to the pre-VAT cost of living and doing business in the UAE (such as real estate, some services and many goods), much of this is due to high demand brought about by a decades-long strong international interest in participating in the UAE market.
Further, the UAE, with a low-cost regulatory environment and a mere 5% VAT, seems poised to remain the gateway to one of the fastest growing regional economies in the world. JHI believes that for businesses who view the GCC as an attractive area for investment, the UAE will continue to flourish as a "starting-off" or set-up point for such investment, and at a time when the economies of the GCC may be poised for potentially explosive growth during a revolutionary time of profound reforms throughout the region, particularly in Kingdom of Saudi Arabia.
JHI will continue to monitor the situation, and track legal developments concerning the implementation of the VAT, in the UAE and throughout the GCC.(Mr. Huf gratefully acknowledges the contributions to this brief note by his good friend Sreekumar Radikrishnan of Goodwins Law Corporation's Abu Dhabi office. Mr. Huf calls Prof. Radhakrishnan his "top Go-To guy" in the UAE - especially on new tax matters: http://www.goodwinslaw.ae/about-us/our-team/sreekumar-radhakrishnan/
This website and its contents - taken in whole or in part - are a law firm advertisement. As with all other entries in the blog section of JHI's website, this article is intended to contribute to public discussion and is published for and distributed to a rather general audience. This article is not legal advice and should not be mistaken for such.
In the event legal advice is needed on the subject of VAT in the UAE, Mr. Huf & JHI will be happy to introduce and refer any such client to Prof. Radhakrishnan & Goodwins for his personal attention.
Finally, Mr. Huf also wishes to make clear that any opinions expressed herein are solely those of Jason Huf & JHI.)
Oct 12, 2017 2:05 PM
By R. Jason Huf
When recollecting the uses of my spare time as I sat down to pen my previously promised piece on fully utilizing the summer months to achieve Work-Life Balance goals, I realized that a simple "How I Spent My Summer Vacation" article would be insufficient. During the summer, indeed throught 2017 thus far, I seemed to gravitate to leisure activities that were relaxing and - sometimes - valuable beyond taking a mere breather for myself.
So, I have instead decided to include something in this writing about how time taken to relax, though not billable, can still be valuable - to ourselves and others. Indirectly, a more relaxed you is likely to be of greater help to your client. But, beyond that, there are activites that are relaxing, interesting AND enriching to your profession and society more broadly.
After all, a desire to influence and shepherd positive change is at least part of the motivation that drove us - and still drives us - along our respective career paths, isn't it?
I have always been public-service minded. This is reflected in my legal practice, wherein certain investments, projects and other client matters have over time and in the aggregate served as a small piece of a small piece of the large, complicated puzzle of establishing a foundation for economic and social reform in Saudi Arabia and the larger Middle East (parenthetically, I am pleased to see that today's reforms are more sweeping and are being enacted much more quickly than I had anticipated, or even hoped).
Accordingly, I often find "relaxation" and satisfaction when I can make time for pursuits that have some intrinsic (but, not necessarily obvious) value to the larger world around me. Take, for example, a presentation hosted by Oxford University's North American office on Manar al-Athar and its efforts to catalogue ancient sites in the war-torn Levant so that they can be preserved or (in the event they have already been or are going to be destroyed by insidious groups like Daesh) restored after the shooting finally stops. When "endangered" cultures become lost civilizations, it degrades the whole of humanity. I encourage you to give this group's efforts a fair look. And, hey, wine was served...
(Sometimes, to your surprise, you may get to meet fabulous people like the one pictued here. Also pictured, standing next to this fabulous person, is a member of the Hashemite Royal Family... )
(Attorney Disclaimer: NOT an endorsement of JHI by HRH!)
Whatever your line of work, your position as a professional provides you with access. In addition to being present at the above-referenced presentation, I'm rather excited to say that I have accepted an invitation to join the New York City Bar Associations's Committee on Middle Eastern & North African Affairs (MENA Committee). Then again, the MENA Committee has a pretty robust agenda, so I may end up regretting this...
Kidding aside, there aren't too many bar association committees in New York, Pennsylvania or New Jersey (the jurisdictions where I am admitted to practice) that specifically focus on subject matter so closely aligned to my practice, so in addition to being recognized for my work after so many years in the field, I am actually looking forward to the (non-billable) work ahead.
Now, I'm not saying that all of your spare time needs to be "meaningful", only that the added element of being satisfyingly productive in some measure may add to the value of your relaxing uses of the downttime you manage to carve out of your busy schedule. Different people have different interests and run at different speeds. I may be someone who has yet to take a real "vacation" at any point in my life, but I do not dispute the notion that relaxation for relaxation's sake is absolutely fine.
For those of you who have the discipline to make the effort to force yourself to take a vacation, more power to you. For the rest of us its enough of an endeavor to find forms of refreshment that are somewhat more limited in scope. But, no worries - it ain't that tough. Really!
Again, Pennsylvania is one of the jurisdictions in which I am admitted to practice. On occassion, I travel to Philadelphia on business. When I know I'm to make the short drive into Philly, well, being a long-time Philadelphia Phillies fan (and, you cannot be a Phillies fan without being a an of baseball period - trust me on that one) I like to catch an evening game when they are playing at home. Why not? I'm a phan, its the thinking man's sport, Citizens Bank Park is a great ballpark and I love Dollar Dog Day.
Also, this past year, the NFL Draft was hosted there (great event, and Philly did a fantastic job of hosting); and, the Philadelphia Orchestra celebrated the works of Mozart not very long ago - as part of that celebration, there was an opportunity to see a showing of the film "Amadeus" (one of my favorites), with the orchestra providing a live sound track.
(NFL Draft - Philadelphia, Pa.)
Some things can be done spur of the moment, without planning, and can be done by almost anyone, especially in New York. Catching the recent solar eclipse without special glasses was easily done by using my phone - I perched it over my shoulder and recorded a brief video. Anyone who could walk to Battery Park (or any open space where the sun was at least partially blocked by the moon that afternoon) could have done the same thing. Many did.
https://www.youtube.com/watch?v=SpdAcRPtZ8Y (As you can see, the Firm's YouTube Channel is still in the "experimental" stage)
When I lived in Jeddah, Saudi Arabia years ago, I took up snorkeling on the weekends and fell in love with the Red Sea and the coral reef beneath its surface. Some folks encouraged me to take up diving, but diving is a great deal of work. If what I do for recreation is more work that what I do for a living, I have something of a philosophical problem with that...
My dog can be a great deal of work (and, don't get a dog unless you are honestly ready, willing and able to do all of the work associated with sharing your home with a dog), but she is without question the exception to the above-referenced rule. When it comes to time well-spent, I am hard-pressed to think of anything more rewarding and relaxing than walking my dog.
Sometimes, I'll just call it an early day at the office and go out. Its New York, man - hit the town. Fridays tend to be ideal: the Middle East is closed on Fridays and the West is in the process of shutting down for the weekend, with businesses in London generally closing by 12:00 noon, US Eastern time (though, I must be mindful of places in other time zones, such as Houston, Texas, which is an hour behind New York). And, naturally, your employees won't mind being able to knock off a little early before the weekend, or will they...
("Seriously, you can leave... ")
In any event, I find that making time for yourself and your favorite people (or, pets) is not impossible - it really boils down to time management. I have also found that taking the occasional, but regular, breather won't kill the bottom line, can make you better at your job and (depending on the activity at hand) may even have the potential to make the world a better place. And, I feel like a million dirhams.
(This is what a million dirhams looks like... )
So, even with the cold winds of winter coming, ready to whistle through the concrete canyons of downtown Manhattan (and I hate winter) - I'm going to continue to make time for me. Since returning to the United States several years ago, I have ordinarily gone into hybernation every winter (absent JHI's Annual Informal Holiday Gathering), but not this year.
Why work so hard in the first place? I don't live to work, I work to live (and, my work is pretty darned good anyway, if I do say so myself). So, I'll work as hard as I play, and play as hard as I work. Maybe you should, too? Whether its rubbing elbows with royalty from an ancient noble line, or having a beer or two with your cheeseburger during an extra-long lunch. Hey, whatever floats your boat.
The bottom line is this: You have an epic and fabulous career, so Live an EPIC and Fabulous Life. There is no point to doing anything else.
I decided against supplying the entire list of extra-curricular activites because if I did you'd still be reading this instead of engaging in your own leisure pursuits (if reading this little blog is one of your leisure pursuits, well, I'm flattered).
Oh, and we all have to get some work in once and a while, too. OK, now back to the grind... : )
– Jason Huf
Thursday, October 12, 2017
New York, NY
Aug 31, 2017 5:51 PMJHI wishes our many friends in the Muslim world a happy Eid Al Adha holiday. To those able to perform Hajj rites, congratulations. We would also like to advise clients and friends who do not observe this holiday to expect delays in certain services due to office closures - particularly banks and government offices - throughout the Middle East region during the holiday, which is scheduled to begin at sundown on Friday, September 1, 2017.In the United States, to all those who labor, have a happy Labor Day weekend. JHI will keep its doors closed until Tuesday, September 5. In the case of urgent matters, Mr. Huf will be available remotely during the weekend, including Monday, September 4.
JHI ordinarily issues bills for professional services rendered during the previous month on the first business day of the following month. However, for only the second time in the Firm's history thus far, we will issue August's invoices on the second business day of the month (in this instance, September 5).
[ Never Forget: Liberty ALWAYS Rises ]
Per Firm custom, at 5:00pm on Thursday, September 7, JHI's NYC HQ will close again, this time in observance of the anniversary of the September 11th terrorist attacks on our country. We will reopen our doors on Tuesday, September 12.On September 11, we honor and remember those loved ones and fellow countrymen lost to sudden and senseless evil. But, there is never a day wherein we forget.
The best way to honor them, especially in New York - the greatest city in the world, is to LIVE (in every sense of the word). To that end, coming soon, we will publish Mr. Huf's report on a productive and enjoyable summer (well, really, a very good year thus far it seems) as part of our Work-Life Balance series. This will be followed by a note on the famously "tax-free" United Arab Emirates' imposition of a tax scheme, including a Value Added Tax and certain Excise Taxes. We also plan, in the very near future, to introduce JHI's new Youtube channel; and, provide on update on EB-5 (Investor) Visas & legal services related to applications for such.
(Another day at the office... Exploring the Boundaries of Your Business)
Watch this space. In the meantime, whatever you are celebrating and/ or observing over the next two weeks as summer comes to a close, we hope that it is meaningful and that you and your families enjoy it.
Aug 8, 2017 7:01 PM
By R. Jason Huf
Some of you may have obtained entry to the "Monastery" (as I've taken to calling my office) as and when business has required. However, for most of those reading this, I realize that I'm letting you in on a little secret: the advertised address of JHI's NYC HQ office is just a mail stop associated with a shared space & services operation on the 6th floor of good old 11 Broadway. To maintain my strict "No Pop-Ins" Policy, the exact location of the Firm Headquarters Office/ Monastery's actual physical presence is kept confidential, and that confidence is only breached when necessary.
Being able to advertise the mail stop as the office address, and the convenience of renting conference room space by the hour on the 6th floor, both enable me to concentrate on my work with minimal interruption. In addition to this "buffer", availing myself of the shared services when certain tasks need to be performed rather efficiently assists me with keeping costs down, which in turn contributes to my ability to maintaining hourly rates that are very competitive.
(As an old boss of mine used to say, "This is not the Fish Market"; but, with our competitive rates and innovative price structures, there may not be much need for you to bargain when seeking high-quality, world-class International Legal Services that your company can afford)
Perhaps most fundamentally to those of you (still) reading this piece, JHI can make available to your company the seamless provision of professional services spanning just about the entire legal prism, without having to figure massive overhead costs into our hourly rates (or more innovative billing arrangements). The outfit that runs the 6th floor operation only caters to attorneys, and many of these attorneys elect to house their firms and solo practices in physical office space on the site. Irrespective of the level of their arrangement, all who participate in some form or another are listed in a directory and, over time, some of us get to know each other reasonably well.
These attorneys practice in virtually every area of the law, and possess a variety of experience levels. In short, I have at my fingertips a storehouse of legal minds to draw upon, from commercial real estate specialists, to business litigators, to tax professionals - even a very smart fellow who focuses on energy trading. And, like myself, they tend to maintain a relatively unburdensome level of overhead costs, which in turn, permits them to be reasonable with their fees as well.
A few people still tend to think of my practice as rather narrow, until I dispell them of that illusion - JHI is a Commercial, Corporate, Energy & Banking law firm and we perform a wide range of services for clients hailing from a broad variety of industries. We just happen to have extensive experience in the Middle East, which may occassionally give rise to some folks instinctively thinking of JHI as a boutique servicing a particular "specialty" area. However, JHI's capabilities are even broader than I previously reasoned:
Between the NYC HQ, our Jeddah, Saudi Arabia Office, additional reources in the UAE (Abu Dhabi & Dubai) and access to Singapore and various major cities in India, JHI as a Brand is known as a capable provider of professional services in the Middle East and South Asia, ranging from company formation to arbitration, for those who have invested - or are looking to invest - in those regions in the world.
What JHI is not (yet) necessarily known for is our ability to assist businesses based in the Middle East and elsewhere with their expansion into the US "mega-market". Whether you are an individual foreign investor entering through the EB-5 Visa process, or a family-owned conglomerate of businesses looking to invest in US real estate, or a publicly traded company in Riyadh entering a joint venture, or a participant in the new US public-private partnerships designed to reform the nation's infrastructure, JHI is well-placed to help get you started as well as protect your US-side business interests down the road.
We have access to an entire network of intellectual assets encompassing a variety of practice areas ordinarily comanded only by big law firms, without having to factor "big firm" overhead into our fees. So, when investing from West to East, or East to West, consider the cost-effective but powerful option of contacting JHI for your legal needs.
Feel the difference and put our NYC HQ and affiliated Community of Attorneys to work for you in concert with our Jeddah office and/ or resources in the UAE, India & Singapore (wherever you're from!) as we help you and your company Explore the Boundaries of Your Business.
– Jason Huf
Wednesday, August 8, 2017
New York, NY
Jun 23, 2017 11:40 AMJHI wishes our many friends in the Muslim world a happy Eid al-Fitr. We hope you enjoy the celebration of the spiritual, intellectual and human growth you and your families achieved during the month of Ramadan.We would also like to advise clients and friends who do not observe this holiday to expect office closures throughout the Middle East region, including JHI resources in Saudi Arabia & the United Arab Emirates, during the holiday.
Jun 9, 2017 1:34 PMSaudi Arabia's (KSA) new Companies Law of 2015 came into effect on May 2, 2016. At JHI, we wished to see the new law in practice and how it would be enforced by Saudi authorities before commenting. In the meantime, much has already been written about the new law and we need not cover the same ground here.Of particular interest to clients and potential clients of JHI is, we believe, the law's provision of the option of Sole Proprietorships (or "Single-Shareholder" companies), and how applications for the licensing and registration of such by foreign investors are treated by the Ministry of Commerce and Investment and the Saudi Arabian General Investment Authority (SAGIA).As a general matter, the new law provides that SAGIA may continue to impose additionally stringent incorporation requirements on companies being established with the backing of foreign investors. While the process of approving incorporation applications has been somewhat streamlined at SAGIA, a certain level of uncertainty, especially at the beginning stages of such an application, remains.When considering establishing or reforming an entity in the KSA, JHI feels that if a foreign investor has a trustworthy local partner/ agent (or "sponsor") then, for the time being, it may remain prudent to make use of such local parties when doing business in the Kingdom. In addition to possibly enjoying a smoother approval process, one might avoid any potential bureaucratic pushback by some recalcitrant officials who may still be resistant to the Vision 2030 reforms more generally.The relationship with one's local sponsor can be further clarified via a side letter to the sponsorship agreement. Such sideletters have been enforced by Saudi courts with increasing regularity. And, JHI hopes that the provision for Single-Shareholder companies in the new Companies Law is not seen by the local judiciary as a rationale for reversing this trend.We will have more to say about the execution and enforement of the new Companies Law and other reforms as events (rapidly) progress. Speaking of events, recent news indicates a very real likelihood of a shift in the direction of investment capital flowing between the Untied States and the Kingdom of Saudi Arabia.Where the Riyals of the Sovereign Wealth Fund go, other Saudi-based investment capital tends to follow. With that in mind, JHI is seriously considering offering the shepherding of EB-5 (Investor) Visa applications to the menu of professional services our firm offers to incoming companies that invest in the United States, particularly New York, Pennsylvania and/ or New Jersey, where Mr. Huf is admitted to bar. JHI will have more to say on this in the near future as well.
May 26, 2017 1:15 PMIn the United States, we set aside one day to remember those who have fallen in war, defending our freedoms. But, there isn't a single day wherein we forget. We hope that you and yours enjoy the holiday weekend, and that we all take a little time to say a prayer of rememberance and gratitude for our fallen heroes and their families this Memorial Day.
We all die, the only variables are where, when and how - and, sometimes, why. They may be gone, but our war dead are never lost. These soldiers, sailors, airmen & marines are forever in our hearts.
To all of our friends around the world who observe the Holy Month of Ramadan, we at JHI hope that you and your families enjoy a meaningful period of dedication to fasting, reflection and prayer during this period of tremendous changes throughout the Middle East. May your loved ones take this holiday as an opportunity grow closer to each other, your neighbors, the less fortunate and the whole of humanity.We wish you good health in the year ahead. Ramadan Mubarak!
Feb 9, 2017 7:12 PM
Near the close of 2016, while the West was focused on the High Holidays, a new American President and the NFL Post-Season that would culminate in a historic Super Bowl LI, the government of Saudi Arabia (KSA) leapt into the 21st Century - literally.
Under the direction of Deputy Crown Prince Mohammed bin Salman, with the full support of his father King Salman, the Saudi Government officially abandoned the Hijri Calendar (the Islamic, lunar calendar which begins with the Prophet Mohammed's trek from Mecca to Medina and the establishment of the first-ever Islamic state), and has adpoted the "Gregorian" calendar (named after Pope Gregory XIII, the solar calendar predominantly used as the civil calendar in the West and elsewhere, which begins one week following the Roman church's, and the day of the Eastern Orthodox churches', traditionally espoused birth of Jesus Christ; the civil calendar used in the West arbitrarily measures months as being either 28/29, 30 or 31 days in length).
Initially functioning as a budget cutting measure, with government employees receiving the same monthly salaries while working an additional eleven (11) days of the year, its the eternal questions of "what next?" that holds the world's attention as those with commercial ties to the KSA wait the other shoe(s) to drop. What are the other consequences, both intended and unintended, of the Saudi government's adherence to this new calendar? How, if at all, will this impact governance and/ or commerce in the Kingdom?
Saudi Arabia is, and was founded to be, an Islamic state. Its Constitution is the Quran. The change from a calendar that is dear to their faith and which honors the pilgrimage of their holiest and most revered prophet, to a calendar created by a Roman military dictator and revised by a Catholic Pontiff is, in and of itself, revolutionary.
For now, its impact is seen strictly as a government austerity measure. Nonetheless, and predictably, the more conservative elements of Saudi society, including the clerics with whom the King shares and exercises power, are resisting this particular change. They presently appear to center their resistance around their concern that the masses will not adhere as faithfully as they have in the past to the holy month of Ramadan (which, like all months in the Hijri calendar, is measured by the lunar cycle).JHI is confident that good muslims will adhere to Ramadan, just as good christians adhere to Easter, the date of which is determined by the advent of the Jewish observance of the Passover holiday (the Jewish calendar measures months by lunar cycles, occasionally adding a month to make up the discrepancy in days between 12 lunar months and one solar year; thus, while Passover - and the subsequent Christian Easter - are celebrated on the same days of year, every year, on the Jewish calendar, they are celebrated at different times of the year on the civil, or "Gregorian", calendar).
Neverless, acquiescence to the Saudi government's new calendar will not occur overnight. As conservative elements tend to dominate the judiciary, and are well-ensconced in the various levels of the bureaucracy in the KSA, JHI feels that for the time being it remains prudent to continue to use language referencing the "Gregorian" calendar as controlling in the boilerplate of contracts and other documents pertaining to business in the Kindgdom of Saudi Arabia - including and especially those documents related to participation in government projects, whether as a contractor or sub-contractor.
JHI will continue to follow the evolution of this particular change, and other developments related to the Vision 2030 reforms, as the Deputy Crown Prince pulls his country into the 21st Century - both metaphorically and literally.