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.
Dec 19, 2016 2:36 PM
During the last week of September, immediately following the opening of the United Nations (UN) General Assembly in New York, a series of seminars, workshops and interactive displays collectively coined "A Day in Riyadh" was showcased at the UN. This week-long "Riyadh Day" was sponsored by the High Commission for the Development of Arriyadh (Riyadh), and particularly featured the ongoing work of the Arriyadh (Riyadh) Development Authority (ADA). As a Representative (Observer) for a Non-Governmental Organization (NGO) to the UN, and an attorney with an office in Saudi Arabia, Mr. Huf, Principal of JHI, was pleased and excited to attend.
Focused on the capital city of Saudi Arabia (KSA, or the Kingdom) and the governate (province) of Riyadh, the series of presentations covered subjects relevant to the economy, culture, commerce and development of the entire Kingdom, and the Arab and Islamic worlds more generally.
Of particular interest to those who follow this space will be the planned reformation of Riyadh's transportation system which, if fully executed, may be the single-largest public works project on earth during the period of construction. However, we will list all of the subjects covered by the panel presentations at the UN between September 27 - 30, to provide a broad look at the planned continued development of Riyadh (one of the chief purposes of the conference) which, in turn, may give us a better view of the Kingdom-wide social and economic reforms known as Saudi Arabia's "Vision 2030".
9/27 "Riyadh: Planning for People" - the overall City Plan (by 2030) moving forward, including details on Riyadh's new "Smart City" initiative.
9/28 "Riyadh: A Sustainable & People-Friendly City" - details concerning the Sustainable Development of Riyadh.
9/29 "Riyadh: On the Move" - The King Abdulaziz Project for Riyadh Public Transport.
9/30 "Riyadh: Development of Civilization and Social Partnership" - Plans for the continued social, economic and intellectual development of the city's population in line with Islamic principles and the traditions of Arabia, particularly youth and especially young women, empowering them to take a more active role in the growth of the city and the future of the Kingdom as a whole.
(Jason Huf and Dr. Sana Alorf. Dr. Sana is extraordinary, but not unique. She is a medical doctor working in Riyadh who also participates in many charitable and civic endeavors. She volunteered, along with many other young Saudis, to travel to New York and talk about their culture, heritage and way of life in side bars at the exhibition. Many ladies are taking up professions [including and increasingly fields such as law, medicine and science], starting businesses and participating in life outside their homes in the Kingdom. Dr. Sana has a wealth of information that dispells many of the illusions concerning Saudi society and highlights the progress Saudi women have made - and continue to make.)
The public transortation project, scheduled for completion in 2018, is a massive affair that could revolutionize life in Riyadh. In addition to a new bus service, the project includes the construction of a commuter railway (Riyadh Metro) with six lines, dozens of stations, a main terminal for each line, and services areas at each stop, including large-scale shopping complexes at each of the main terminals. Anticipating use by roughly 3.6 million residents daily, over 3,000 transport stands will be constructed to accomodate waiting commuters.
With billions of Saudi Riyals being invested into the project, and given the rather brief time frame, this will generate a labor boom in the capital for qualified Saudis and expatriates. Mr. Huf asked Eng. Hassan Al Musa, Deputy Director of the Transport Planning Department of the High Commission for the Development of Riyadh, if resources had been allocated to process what should be a substantial spike in Visa applications. Potential contractors and subcontractors will be interested to know that the Deputy Director responded that his office is in touch with the Ministry of Labor on a regular basis as they set up for this contingency. So long as employers comply with their filing requirements, he said, there should be no delays in the project caused by a labor shortage brought about by paperwork backlogs.
(Eng. Hassan Al Musa and Jason Huf. Mr. Huf found him to be capable, earnest and modest. Although entrusted with day-to-day management of a massive public works project that progresses under a tight schedule, he always gives credit to others, refering to his "Army" of dedicated public servants. "That makes you a General", responded Mr. Huf, who later added, "Eng. Hassan is a nice guy".)
In addition to the lifestyle transformation and relief of traffic congestion that will take place once this project is complete, young Saudis who are lacking in resources such as cars of their own will be able to much more easily venture beyond the confines of their own neighborhoods to look for satisfying work and important educational opportunities. And, everyone who lives in Riyadh should enjoy the benefit of cleaner air arising from fewer cars on the highways.
The entire program provided a window through which one could sample Saudi Arabia's Vision 2030, the rapid modernization and other wide-ranging reforms ordered by King Salman and spearheaded by Deputy Crown Prince Mohammed bin Salman, with the aim of guiding a modern but authentically Islamic Saudi Arabia that remains true to its people's history and traditions into a future "Post-Oil" economy.
These reforms include the KSA's Sustainable Development program, which closely follows the UN's Sustainable Development Goals while keeping in conformity with Kingdom's Islamic principles; increased opportunities for youth & women; and, Saudi Arabia's nuclear power program.
At JHI, we have offered our own modest suggestions for the shaping of such sweeping reforms, with an emphasis on attracting increased Foreign Direct Investment in the Saudi market.
With an incoming US Administration that seems keen on utilizing America's energy resources; and, (if feasible) working with Russia to defeat ISIS (which, in addition to commiting henious atrocities, has been fighting forces led directly or indirectly by the Iranians), some may see such investment from the West as slow in coming, and the KSA's reception of it to be less-than-enthusiastic.
Seen by some as signalling potential push-back against the further development of US energy resources and other recent or possible future policy changes, Prince Alaweed bin Talal of Kingdom Holding Company (Saudi Arabia's soverign investment apparatus) suggested selling holdings previously classified "not sellable" (such as shares in Citi Group and US Treasury bonds), which would be a divorce from Saudi Arabia's long-standing policy of having "buy-ins" in important American economic institutions and, thus, the American economy - effectively giving the US a stake in the KSA's existence and continued success.
Noises concerning such potential push-back seem unlikely to stem the increased exploitation of US energy resources (another dip in the price of oil, for example, would seem more likely to give pause to an increase in US production). And, the US-Saudi alliance of over seven decades, while fraying a bit over the last several years, should remain rather tightly tethered: after ISIS is destroyed, a check on Iranian ambition will have been eliminated, and the US and the KSA will more clearly and simply share strong interests in containing Iran and managing increasingly complicated relationships with Russia.
In fact, the strong relationships the KSA enjoys with the West, the interest Western countries have in seeing the continued modernization of Arab states, and Western companies' keen eye to continue - and, possibly increase - their investments in the Gulf region were reinforced recently by UK Prime Minister Theresa May in her mid-December visit to the Gulf Cooperation Council summit in Bahrain.
Pending changes to the Kingdom's commercial and corporate laws, which continue to be rolled out, and given at least one or two geopolitical uncertainties, JHI presently and on the whole views it likely that the environment for Foreign Investors will become even more attractive as the Vision 2030 reforms are implemented in the KSA. As to the Great Social & Economic Reformation of the Kingdom known as "Saudi Arabia's Vision 2030", Mr. Huf doesn't think its on par with the Maji Restoration (the radical transformation experienced in Japan during the late 19th century), but he does see it as the most significant series of reforms in the history of the KSA since the reign of King Faisal (perhaps in the Kingdom's entire history - we'll see) and the most positive collection of developments to take place in the Arab world thus far in this new, turbulent 21st century - and, he certainly viewed the exhibition at the UN positively.
Oct 12, 2016 2:38 PMBy R. Jason Huf
You know why you went to law school in the first place: You wanted to help people, change the world, "make a difference", be part of the solution... to whatever. Yeah, and you wanted to live a glorious, fabulous lifestyle at the top of the heap, respected by society and basking in financial comfort. What, no? Liar.When you finally graduated and passed the bar exam, your new professional qualification represented to you - at long last - the Keys to the Kingdom!
OK, so how's that workin' out for ya?
Now that I'm exactly one week into my latest attempt to quit smoking, and as the cold wind howls off the waters of the South Seaport and into the concrete canyons of Downtown Manhattan's Financial District, signaling the evaporation of yet another summer, I reasoned that penning my previously-promised piece on Work/ Life Balance would be timely.
(The cold wind cometh... )
You've devoted the first "better" half of your life to developing, well, a better life for you and yours.
Late nights at the office during the beginning of your career - part of the drill. No biggie.
More late nights managing junior fee earners once you become more seasoned - part of the drill, and "almost there". No biggie.
You're now a partner or solo practitioner and the near-constant focus is on client development; or a GC who is a company's responsible officer with a hand in everything from strategic decisions to managing the costs of outside counsel while demonstrating value for those costs; "sigh" - part of the drill, once the rain comes in steady, or I make it to the board of directors, its smooth sailing. No biggie.
Then... You've made it! Finally!! You're also 60 years old. Its over... Where did the time go and what was it for? It doesn't matter. Bye-bye. Oh yeah, and: No Biggie.
(No, my office doesn't look like this, either... )
Time is the one resource we can never obtain more of - only less. Every day. Whether we actually make good (or, any) use of it or not.
And, particularly with lawyers, once we become good at something in our field - whatever your practice areas - those things tend to become routine. Eventually, routine becomes routine. We go through the motions, the excitement of "changing the world" goes away, and its the same old same old that one cannot get away from for even the smallest amount of time, because we've got to do that billable work so we can pay those bills. Joy.
("Seriously, I went to law school for this?")
I worked for years to build my reputation as "Mr. Middle East". However, there are no more revolutionary Shari'ah-compliant financing products to help invent, no more reforms to educational systems in different parts of Arabia. Doing client work that, in some small way, may someday help to generate a broad-based, self-sustaining middle class in the Middle East is more or less over with. Moving forward, whatever happens there is pretty much already in the cards. All too often, I arrive home at 1:00am or so, pet my dog, and think of something along the lines of "Another fast food franchise on Hamdan Street... " or "Another oil refinery in the middle of some dusty nowhere... " followed by the usual "Yay. Who cares."
That's not good. A steady supply of "Bread and Butter" is nice to have, but when its all you have, things can get pretty damned dull. When we get to the point when our work day is up to 16 or even 20 hours a day some days, 5 or 6 days per week, and we no longer care about what we're doing, much less have a passion for it, then this invariably leads to the most dreaded word in the legal lexicon. The "B Word"...BURNOUT!!!
Like many in our profession, I've always been something of a minor league insomniac, so why not work late into the night, anyway? I've done some of my best thinking at 10:00pm. Of course, this means I won't be able to decompress to the point where I can sleep until 3:00am, and that's not good when you have to wake up at 6:00am.
Professional and personal dissatisfaction, as well as chronic exhaustion and "no life syndrome", are common among lawyers. And, there's no way out: you've already invested too much into your career, and your life (or, mere existence, such as it may be) is already half over anyway.
Not necessarily! The good news is, if you're good at your job, your success partially stems from your possession of excellent time management skills and your adept ability to prioritize tasks. Put those skills to work and carve out some free time - make "having a life" one of those tasks which you prioritize on a regular (well OK - semi-regular) basis.
(R&R - fit in in!)
We are in the business of being effective counselors who help our clients, be they individual or corporate clients. If you're not being good to yourself, its only a matter of time before you're not being as good as you could and should be for your clients.
I began this summer thinking it was time for "Mr. Middle East" to make full use of his time and status (OK, "Mr. Middle East" may not be lofty to the point of august, but it is kind of snazzy... ). And, then, I proceeded to more or less waste my entire summer. So, what's one summer? No biggie.... Wrong. Its a "biggie". Given my visceral dislike of winter, its effectively the waste of an entire year. Enjoying anything in the cold, wet, sharp, biting wind of the winter months takes considerable effort - and, anything that requires so much effort to "enjoy" is, definitionally, unenjoyable.
At my age, a year's worth of waste is waste I can ill-afford. I will never permit that to happen again - and, neither should you.
Necessary late nights will happen. That cannot be helped. But, working late for the mere sake of making "valuable" use of your waking hours misses the real value of time.
You - and your clients - can withstand you taking an evening, or even an entire day, off. Working from home once in a while isn't the end of the world, either. Trimming that commute time off of your schedule can make a heck of a difference, and technology makes working from home easier than ever.
In managing your time and prioritizing your tasks to make room for an actual "life", don't just take advantage of good weather as and when the seasons of the year allow, but make the most of the location where you are based: whether you've planted your flag in New York, Philadelphia, London, Jeddah, Abu Dhabi, Tampa, Florida or Ashville, North Carolina, you live in one of the great cities of the world - make the most of it. Its practically a sin if you don't!
In New York, where I chose to locate JHI's HQ, I am a subway ride from some of the most exciting entertainment on earth, and walking distance from several quick, pleasant distractions.
(The World-Famous ROCKETTES!!)
Whether its taking a few hours one evening to enjoy the spectacle of the world's greatest precision dance troupe at work, or a stroll through battery park after your afternoon nap, a brief refresher could actually increase the quality or your work while not severly limiting the amount of time available for work.
In addition to a bit of exercise, a proper diet doesn't hurt, either...
Taking an obscenely long lunch at a comfortable, but not too over-priced, local eatery may be just the ticket when looking for R&R opportunities that will make your thoughts sharper, more clear and faster but more thorough. You won't be able to send your client the bill, but perhaps you should given the subsequent improvement in your performance that results from taking a nice, relaxing breather...
("I wonder if they still serve those off-menu parmesean fries... ")
You can also combine business with pleasure. For example, in line with my loathing for winter, during the bitter months of January and/ or February, I am considering taking a tour of the Middle East and South Asia where the weather will be perfect at that time of year, to visit the Jeddah, KSA office as well as possible expansion points for JHI in the jurisdictions/ markets of the United Arab Emirates (Abu Dhabi & Dubai), Singapore and India.
Well, I gotta go - I've always wanted to date a Rockette and that's not going to happen by itself, nor will I be able to make it happen while sitting within the four walls of my office.
For now, remember: being good to others first requires that you be good to yourself. Although its easier said than done, "Don't Live to Work, Work to Live" - get back to living the life you intended to live when you started this journey. It comes down to good time management and shrewd prioritization. If you have run out of professional challenges, perhaps find one or two new challenges in your travels. And, there is one more thing that anyone can do, everyone should do more often, it doesn't cost you anything or require additional time, and if you do it more often, it can make a world of difference:
- Jason Huf
Tuesday, October 11, 2016
New York, NY
Jason Huf International, pc
"Exploring the Boundaries of Your Business."