May 17, 2018 11:05 AMTo 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 fasting, reflection and prayer. Those living and working in the Middle East, in particular, are experiencing historic - sometimes exciting, sometimes challenging - events that may well rapidly change the face of their entire region of the world. Looking ahead into the unknown can feel somewhat daunting. May your loved ones take the opportunity of this holiday to grow closer to each other, your neighbors, the less fortunate and the whole of humanity.We wish you good health & great prosperity in the year ahead. Ramadan Mubarak!
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 downtime 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!
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.
Sep 9, 2016 11:44 AMThis is one day of the year all of us set aside for remembering, but there is never a day when we forget.
As with dates officially deemed "National Holidays", JHI's New York HQ Office - per annual Firm tradition - will be closed for business this Monday, September 12, in observance of the 15th anniversary of September 11, 2001.Just as JHI is proud to perform work that may make some small contribution to what, some day, may be the development of a broad, self-sustaining middle class in the Middle East, JHI is honored to be a witness to the resurgence of downtown Manhattan. The Financial District's magnificent comeback is best symbolized by our neighboring Liberty Tower:
September 11 will be a day of remembrance and reflection for us all. JHI will resume offering high-quality professional services on Tuesday, September 13.JHI also wishes our many friends in the Muslim world a happy Eid Al Adha holiday. 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 Sunday, September 11.
Aug 23, 2016 5:50 PMYou are about to see a rapid-fire (for this space, anyway) succession of as yet unpublished updates covering a period from Spring 2016 to present. We will start with an initial discussion of Saudi Arabia’s “Vision 2030”, touted as the most sweeping series of reforms in the Kingdom’s history.In a nutshell, Saudi Arabia’s Vision 2030 is a collection of planned economic and social reforms designed to construct a “Post-Oil” Saudi Arabia, in line with globally-held concepts of Sustainable Development. King Salman has invested his son, Deputy Crown Prince Mohammed bin Salman, with broad, sweeping powers to enable him, his advisors and other subordinates to design and execute these reforms between now and the target date of 2030.Within the stated goals of weaning the Kingdom (KSA) off of being an Oil-based economy and becoming an industrialized state, with greater Foreign Direct Investment (FDI), full employment for working-aged males, improved access to high-quality education, greater rights for women and a more liberal social structure generally, two items are immediately obvious: we are seeing Riyadh’s intent to finalize the end the era wherein OPEC, the powerful cartel of oil-producing states, has been the world’s definitive maker of oil policy; and, a rapid and intense military build-up intended to strengthen a block of states that includes the KSA, Egypt and the smaller Gulf States determined to withstand growing Iranian and Russian influence in the Gulf region following continued declining US influence and interest there and in the greater Middle East.While JHI is not a policy think tank, we feel it is important to know the backdrop and overall purpose of any upcoming reforms.Our principle concern is FDI, and the impact any reforms may have on the attractiveness of FDI in the KSA. This program is still young, so specific laws and regulations impacting FDI are not yet in effect. For the time being, there is nothing set in concrete that a law firm can dissect for the benefit of its clients.Therefore, in our typical less-than-modest fashion, JHI offers some suggestions on how to make FDI in the KSA more attractive to potential investors:1. The Corporate Income Tax should continue to be (gradually) lowered, and personal income tax should remain zero. Although declining oil revenues and their impact on the national government’s budget needs to be addressed, increasing the number of companies investing in the KSA, rather than increasing the tax existing companies pay, seems the best way to address the current budget shortfalls giving rise to the KSA’s national debt.2. Saudization is seen, by and large, as a form of tax by potential foreign investors. The best way to address the employment crisis in the KSA is not by compelling investors to hire Saudi nationals, but by making the hiring of them more attractive. Foreign investors ordinarily love to avail themselves of a local workforce – after all, importing staff and finding housing for them is pretty darned expensive! Many such imported workers do not know the language or withstand the culture shock very well. Unfortunately, fairly or unfairly, the idea of hiring Saudis is generally considered unattractive, thus the current Saudization requirements. Rather than increase these requirements, education should be improved and made more accessible, and a sense of work ethic (rather than entitlement) needs to be instilled in the Kingdom’s youth. And, the world needs to actually KNOW of the existence of such an educated, hard-working labor pool – numbering in the millions, and proud of real accomplishment at the workplace. Do this, and Saudization will no longer be necessary at all.3. Make the process of obtaining a business license less burdensome and more efficient. Telling clients that it could take a minimum of six (6) months to obtain the necessary documentation before proceeding with business activity tends to be something of a turn-off for them. Additional agencies designed to steer and otherwise regulate foreign investment eases nothing and are simply additional "layers” of bureaucracy. Streamlining, rather than adding to, the process of licensing incoming businesses would be a productive step.4. Women’s rights, and human rights generally, should be broadened – and, can be without offending the Kingdom’s religious sensibilities or its historical traditions. It is much easier, on multiple levels, for a company to invest in a country whose culture is not the focus of controversial discussions centered around notions of equality and individual human dignity. Additionally, it is essential that people throughout the Kingdom feel some sense of “ownership” in their country and their respective futures (see, 2. above). They need to feel that their rights are being protected by their government, not denied. This isn’t a call for the overnight imposition of Jeffersonian democracy. Quite the contrary: JHI asserts that the keys to unlocking a more liberal social structure (without rocking the stability of the KSA) lay within the old tribal and other cultural traditions of the modern Kingdom.5. The labor market, and the regulation of such, should be loosened, and greater rights should be provided to foreign “unskilled” laborers and household staff. As above (see, 4.), this is a matter of conscious for many potential investors, as well as foreign professional staff who visit the KSA.6. Banking reform is a must. The KSA is one of the most – if not the most – “underbanked” markets on the face of the earth. While new banks and fresh capital and competition need to be allowed in, stronger regulation and monitoring needs to be in place, giving rise to stronger internal compliance programs. While banking needs to be more readily available in the KSA, companies and governments around the world also need to have more confidence in the country’s banks.7. For local and foreign companies alike, receivables can be something of a headache in the KSA. Its no secret that debt, and the collection of debt, can be problematic there. As the Kingdom undertakes judicial reform, it should continue to consider the importance of the confidence a company can have in the investment it makes in Saudi Arabia.8. One of the most crucial assets in play when investing in any country is a company’s intellectual property. Intellectual property protections and anti-piracy measures need to be greatly strengthened, and quickly. It is important for any company (say, you sell shampoo and find yourself competing with a counterfeit knock-off of your product – that’s not good), but when looking to attract high-tech industries, especially, it is absolutely fundamental that such companies have confidence that intellectual property worth hundreds of millions, perhaps billions, of US dollars will not be stolen from them and effectively rendered next to worthless overnight.These are eight basic principle points upon which JHI would like to see the building of any reform package affecting FDI in the KSA.JHI will track any concrete steps within this subject, and Mr. Huf hopes to learn more when “Riyadh Day” (its actually a week of symposiums, workshops and other such meetings), sponsored by the KSA’s High Commission for the Development of Riyadh, is held at the United Nations in New York at the end of September.
Jul 5, 2016 2:41 PMJHI 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, despite the challenges to peace and security during the Holy Month this year. We would also like to advise clients and friends who do not observe this holiday to expect office closures throughout the Middle East region during the holiday.JHI will continue its expansion in the region and hopes that, even as they mourn those lost this past week, the good people of Medina, Jeddah and elsewhere in the Kingdom celebrate God-given life and its highest pursuits.
In the United States, we celebrated the 240th anniversary of our Independence on July 4. These past several weeks have seen barbarity at its worst. With specific reference to the terrorist attack at Medina, we in the Land of Liberty, irrespective of faith, stand with and pray for the innocent victims of that atrocity. Everyone has a right to freedom from terror.
While the savage primitives of ISIS/IL are strongly suspected of coordinating the attack in Medina and other places throughout Saudi Arabia, no group as of the date of this writing has claimed responsibility and the motives of the suicide bomber in Medina are as yet unknown. It was nonetheless a murderous act of barbarity that the whole of the civilized world must reject. ANY "cause" served by the use of Terror as a tactic must, summarily, be deemed illegitimate.
Further, when terrorism is employed, the actors betray their so-called "cause" to be nothing more than a pretext for a war of conquest. This is the reality civilized people across the globe must face with the determination that any such enemy will be defeated and placed in history's rubbish pile, along with so many other would-be tyrants of the past.
Jun 6, 2016 11:28 AMTo all of our friends around the world who observe the Holy Month, we at JHI hope that you and your families enjoy a meaningful period of dedication to fasting, reflection and prayer during these historically challenging times. 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!
May 25, 2016 1:50 PM
By R. Jason Huf
Its been quite some time since JHI's last Note or Comment, but that doesn't mean that there hasn't been anything to write about. And, its certainly too much to write about all at once.
With Ramadan just around the corner, should the usual business cycle associated with the Holy Month and High Summer come about, I will make maximum use of the time and write more often:
April was a pretty busy month, inside the office and out. Saudi Arabia's "Vision 2030" was unveiled by Deputy Crown Prince Mohammed bin Salman on April 25. JHI will provide analysis of the KSA's plan for a "post-Oil" economy, and any changes to the laws of the Kingdom resulting therefrom. We will also continue to track legal developments elsewhere in the Gulf region.
Also, as UN Representative for an NGO, I enjoyed the opportunity of hearing United Nations (UN) Secretary-General Ban Ki-moon speak about the UN's Sustainable Development Treaty, the Sustainable Development Goals, and what the private sector (including the Legal Community) can do to help achieve those goals. This was followed by attending several open forums at the UN, and hosting a talk on 'Conflict Minerals' with an expert on the subject.
I also moderated two very successful Continuing Legal Education panels, one on the Foreign Corrupt Practices Act (FCPA) and the other an Ethics course on Attorney "Branding" for international practitioners.
Almost forgot! In March, I had the pleasure of hosting a New York State judge who discussed the Qatari Commercial Courts after returning from his experience teaching new, young Qatari lawyers in Doha.
More recently, after months of deliberations and conversations with colleagues and others I respect, I have come to a decision on JHI's future in the Middle East - and, beyond.
[ for some of the backstory, click here ---> ].
Further details concerning our expansion of capabilities and services, as well as the other topics outlined above, will be distributed in due course.
In the meantime, Happy Memorial Day -- enjoy the start of summer!
- Jason Huf
Wednesday, May 25, 2016
New York, NY
Mar 1, 2016 5:43 PMBy R. Jason Huf
It is with great pleasure, and not without some sense of humility, that I announce my appointment as Representative (Observer) to the United Nations (UN) by the New York County Lawyers' Association (NYCLA), a Non-Governmental Organization recognized by the UN.Observers have access to certain sessions and other events covering a wide range of topics, and I hope to put this exposure to the best possible use of NYCLA and the legal community as a whole. Naturally, my own focus will be on the Middle East and topics important to those involved in the region, from Womens' Rights (and, Human Rights generally) to Banking, Energy, International Corporate Governmence and Trade.
Of course, I am not a "One Man Army" -- I am working
with a terrific team of dedicated professionals, and I
expect great results as we report back to our
colleagues on issues of importance to international
legal practitioners and other concerned classes of
This is an opportunity - and, an honor - that I am
committed to making the most of as our civilization
marches ahead into an age of rapidly-changing times that
may require some thought be put into changing legal
constructs.And, hey, you can't beat Fun...- Jason Huf
It goes without saying that I will provide a report or two via this space as well. Thank you for your continued interest.
Tuesday, March 1, 2016
New York, NY
Dec 22, 2015 10:19 AMThe Law Firm of JASON HUF INTERNATIONAL, pc (JHI) will close the doors of its New York HQ Office for the Christmas and New Year Holidays starting today, December 22, 2015 at 5:00pm.
JHI will resume regular business hours on Monday, January 4, 2016. As usual, because of necessary and prudent building security measures, office visits in 2016 will be by Appointment Only.
During the Holiday Season, the Jeddah office and the Khalil Khazinar Law Firm will remain open. In the event of an urgent matter arising during the Holidays, Mr. Huf can be reached directly by e-mail.
From everyone at JHI, Merry Christmas!! And, best wishes for a happy and prosperous New Year!
Sep 18, 2015 11:13 AMJHI wishes our many friends in the Muslim world a happy Eid Al Adha holiday. 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 on the evening of Wednesday, September 23.
Sep 10, 2015 1:43 PMAs with dates officially deemed "National Holidays", JHI's New York HQ Office will be closed for business this Friday in observance of the anniversary of September 11, 2001.Just as JHI is proud to perform work that may make some small contribution to what, some day, may be the development of a broad, self-sustaining middle class in the Middle East, JHI is honored to be a witness to the resurgence of downtown Manhattan - it really is one of the truly great comeback stories of our age, as symbolized by the new neighboring Liberty Tower:September 11 will be a day of remembrance and reflection for us all. JHI will resume offering high-quality professional services on Monday, September 14.Liberty ALWAYS Rises. We will never forget, nor will we quit.
Jul 17, 2015 1:11 PMJHI 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 during the holiday.
Sep 8, 2014 4:09 PMJHI will be closed for business this Thursday in observance of the anniversary of September 11, 2001. Just as JHI is proud to do work that may some day contribute to the development of a broad, self-sustaining middle class in the Middle East, JHI is honored to be a witness to the resurgence of downtown Manhattan - it really is one of the truly great comeback stories of our age.
Thursday, September 11, will be a day of remembrance and reflection for us all. JHI will resume offering high-quality professional services on Friday, September 12.
Liberty ALWAYS Rises. We will never forget, nor will we quit.
Jul 28, 2014 2:48 PMJHI wishes our many friends in the Muslim world a happy Eid al-Fitr. We would also like to advise clients and friends who do not observe this holiday to expect delays in certain services, and possible disruptions of projected time frames, due to office closures throughout the Middle East region during the holiday.
Jul 18, 2014 4:10 PMUnless you are a fan of Battlestar Galactica, the word “Fracking” tends to have negative connotations. People don’t necessarily like it, even without quite knowing that to which the word refers.Fracking is the colloquial term for Hydraulic Fracturing (which may sound ever scarier), a mining process by which a fluid solution is applied at high pressure against fissures in subterranean rock formations to facilitate the yield of valuable materials (usually oil, gas or coal steam) that would ordinarily be uneconomical, or otherwise impracticable, to extract. This process has been in use for over sixty-five years, and over 1 million wells employing such a system have operated in the continental United States alone during that period.While Fracking is not new, the technologies involved in both the Fracking process and in oil and gas exploration have improved to the extent wherein there are new uses that generate higher yields. Perhaps the most discussed new developments as of late concern the Marcellus Shale natural gas deposits.Focusing specifically on Fracking as it applies to the Marcellus Shale, in very basic terms: a well is drilled into an extraction site, and the hydraulic fluid is applied at great pressure against cracks in subterranean sandstone formations, allowing for the injection of a proppant that facilitates the release of natural gas particles (mostly methane), which then fill the well thereby making such gas available for extraction. The fluid solution employed in the Hydraulic Fracturing process generally consists of water (90%), sands (9.5%) and certain chemicals (0.5%).The chemicals conventionally used in such a solution tend to include methanol, hydrochloric or acetic acid (to clean the initial fissure), citric acid (to prevent corrosion), salts, glutaraldehyde (a disinfectant against bacteria), water-soluble guar gum and other viscosity control agents, ethylene glycol (to prevent the occurrence of scaling inside the pipes) and friction reducers. These chemicals sometimes vary and are employed to prevent bacterial growth in the water within a wellbore, facilitate and maintain operation of the well, and to prevent or otherwise mitigate the corrosion of the well casing (such well casings typically consisting of a polymer gel or foam).Recycled “flowback” water, liquid propane, carbon dioxide and other gases may be used to reduce reliance on water for this process, as the technology continues to change.Most of the discussion about the recent proliferation of Hydraulic Fracturing in the Marcellus Shale region revolves around the potential environmental impact. In addition to voicing worries over the possibility of increased seismic activity (earthquakes), many are concerned with the potential for pollution: the use of certain known carcinogens in the Hydraulic Fracturing process and, particularly, contamination of groundwater by methane gas via leaks in the wells after such wells are in operation.There is some scientific debate still ongoing as to which is more susceptible to leakage: Fracked wells or conventional natural gas wells. Currently, radioactive tracers and, increasingly, geophones are used to monitor Hydraulically Fractured natural gas wells once established. Unfortunately, much of the research and discussion on issues involving Hydraulic Fracturing and the potential consequences to the environment and our health has been ideologically motivated and politically charged. Thus, when seeking accurate information to become better educated about these legitimate concerns, well, the waters are somewhat muddied.That’s disappointing, but should not discourage one from seeking more information (especially if you live in an area where Fracking is employed, or scheduled to be employed).The intention here is not to craft a scientific treatise or to present an academic paper. This little blog posting is not all-inclusive, but is merely intended to provide some basic facts on an often-mentioned, but little understood, word that has made its way into our vocabulary. JHI hopes it may well be a springboard for conducting your own research on the subject.Finally, this article certainly does not take any political opinion on the subject of Fracking – that can continue to be the domain of those who engage in politics for a living.
Jul 9, 2014 3:37 PMBetween the July 4 weekend and other summer holidays, high summer in the Middle East, the holy month of Ramadan, and some sort of soccer tournament, we find ourselves in the unusual position of having a little free time here at JHI.As such, watch THIS SPACE: In the coming weeks, JHI will post a brief article right here in our Notes & Comments section on Hydraulic Fracturing (colloquially referred to as “Fracking”).
Following Labor Day, JHI will publish a brief note on contracting with parties in Middle Eastern jurisdictions (in particular, Saudi Arabia (KSA) and the United Arab Emirates(UAE)); and, in a subsequent writing, JHI will share some thoughts on Arbitration Clauses when doing business internationally.
And, while there tends not to be many developments in the law anywhere in world during these summer months, JHI will continue to keep our eyes peeling concerning such developments as and when they affect Marcellus Shale Natural Gas, Charter Schools, Municipalities, Middle Eastern jurisdictions (particularly Gulf Cooperation Council jurisdictions), the law of Contracts, the laws of New York, New Jersey, Pennsylvania, the UAE (Abu Dhabi and Dubai) and the KSA, and business law generally.In the meantime, we would just like to wish all concerned a safe and happy summertime!
Jun 27, 2014 11:50 AMTo all of our friends around the world who observe the Holy Month, we at JHI hope that you and your families enjoy and gain value from the meaningful aspects of an entire month dedicated to prayer and fasting. May your loved ones grow closer to each other, and humanity generally, during this time. We wish you good health in the year ahead.Ramadan Mubarak!
- Jason Huf
Jun 5, 2014 12:33 PMJHI is pleased to announce that the Firm's Founder and Principal has been awarded the honor of serving as Co-Chairman of the New York County Lawyers' Association's (NYCLA) Foreign & International Law Committee, effective June 1, 2014."This is an exciting time for the Foreign & International Law Committee, and NYCLA generally. Jay (Safer) and Jacqueline (Wolff) have done a terrific job as Co-Chairs of the Committee over the last several years, and we have some pretty big shoes to fill. It is an honor to follow them, and I will do my level best."Continuing the tradition of hosting excellent guest speakers, and working with NYCLA to explore the offering of CLE programs designed for international practitioners, will be at the top of Mr. Huf's agenda.Mr. Huf assumes the Co-Chairmanship of NYCLA's Foreign & International Law Committee with his distinguished colleague, Ms. Clara Flebus. They will serve together for the 2014-17 term.
May 12, 2014 11:06 AMFrom time to time, a trial balloon is floated in one GCC jurisdiction or another concerning the imposition of a new tax, whether it be an individual income tax, corporate tax or a value added tax. The most recent of these is now floating over Dubai, which is still grappling with the residual effects of the 2008 crash while maintaining high levels of infrastructure spending.A prominent Emirati businessman based in Dubai publicly raised the idea of a corporate income tax in Dubai and voiced his general support for such an idea. This is easily to understand, given the depletion of Dubai's oil reserves, the reversal of 2008 and resulting cash crunch, and the Emirate's continued high level of spending. However, it would be somewhat akin to Killing the Goose that Laid the Golden Egg.Dubai rose up from the desert, transforming itself from a small trading post adjacent to Sharjah into the "City of Dreams", on the basis of its business-friendly laws, easy access to the oil-rich Gulf region, an unburdensome regulatory environment, quick access to financing and investment capital, and clever marketing revolving around the fact that the Emirate is Tax-Free.
While there are numerous government fees, paid annually, along with payments to sponsors, exceedingly high rental costs and other expenses one could say amount to a sort of taxation, companies and individual entrepreneurs from all over the world continue to flock to Dubai, drawn to the City of Dreams by the prospect of Tax-Free wealth. Imposition of a corporate income tax could threaten this influx and inspire existing businesses to relocate elsewhere in the Gulf. Even if such a tax were quickly repealled, reestablishing Dubai's image, carefully crafted and astutely marketed for many years, might be next to impossible. And, isn't the real "Dream" not quick wealth, but having a broad-based economy not entirely dependent upon oil in the very heart of the Gulf region?
If Dubai is the City of Dreams, the "Green Capital" of the United Arab Emirates, Abu Dhabi, has been the Emirate of Reality. With much of the UAE's energy resources, over half the country's population and land mass (much of it still undeveloped), and a very similar body of business law and regulations, and a robust banking industry, Abu Dhabi is also Tax-Free. Abu Dhabi may not be known for a miraculous boom of the sort that made Dubai famous, but it has enjoyed steady, broad growth that has withstood the 2008 crash.Today, and not accidentally, Abu Dhabi is a leading target for foreign direct investment. A corporate income tax in Dubai would not only enhance the relative attractiveness of Abu Dhabi to newcomers to the region, it might also encourage some of Dubai's existing businesses to take a two-hour drive and check out why the Emirate of Abu Dhabi is "green" in more ways than one.
Mar 6, 2014 1:38 PMThe government of the Kingdom of Saudi Arabia (KSA) recently announced its intention to establish training centers for judges. Such training centers will be administered by the KSA Ministry of Justice. This comes on the heels of King Abdullah's creation of 5,000 new judgeships in the KSA, and is accompanied by vocal opposition from the Kingdom's more traditional, conservative quarters.
For years, the commercial community in the KSA (both local and foreign) has expressed a need for greater transparency in Saudi courts. Procedurally and substantively, a perceived lack of predictability has resulted in a chilling effect on commerce in the KSA.
Arbitration clauses in contracts are of uncertain enforceability in the KSA, as senior judicial officials have, in the past, deemed such clauses to be "contrary to Shari'ah". Accordingly, irrespective of any arbitration clause in any business arrangement entered into, in the event of an irresolvable conflict between the parties one could reasonably expect such a dispute to be adjudicated before a Saudi court.
The uncertain enforceability of arbitration clauses and perceived unpredictability of the courts have combined to generate something of a chilling effect on investment in the KSA. Meanwhile, Gulf Cooperation Council (GCC) provisions that call for entities native to any GCC Member State to be treated as a local company by the governments of each of the other Member States have added to the investment boom in smaller Gulf countries such as Qatar and the United Arab Emirates: some companies enter those jurisdictions in the hope that, at some point, they might be able to access the much larger Saudi market without completely exposing their investment (or, their employees) to the Saudi legal system.
It is hoped by many in the commercial community that the addition of 5,000 new judges, uniformly trained in the enforcement of commercial and corporate law, will improve the overall business environment in the KSA by generating a greater sense of transparency and predictability in the courts.
The details are as yet unknown; and, conservative elements who view laws and their interpretation as coming from God, not precedent, statute or human beings generally, still have opportunities to oppose the establishment and effective administration of such training centers. JHI will continue to track such developments as they arise.
Feb 26, 2014 1:14 PMStories concerning the 2022 World Cup tournament seem to have taken all the oxygen out of news and information about Qatar. True, Doha is scheduled to be the first Arab state to host the world's largest soccer tournament, and this promises to generate something of an increase to the country's construction boom. But, there's more to this small, wealthy Gulf state than sports.Businesses, whether they be engineering firms, banks, energy companies, franchisors, purveyors of luxury items or manufacturers of fast-moving consumer goods, might be interested to know that Qatar is the world's third largest producer of natural gas and has a legal and regulatory enviroment wherein compliance is relatively inexpensive. With the highest GDP per capita in the world, Qatar's consumer base is awash in disposable wealth and opportunities abound.As a law firm, JHI takes particular notice of Qatar's bifurcated legal system. The civil courts there are completely separate from and independent of the Shari'ah courts, and the rest of the government generally. These separate courts that deal with matters relating to foreign commercial interests provide a level of transparancy and predictability for which Gulf-Arab jurisdictions, fairly or unfairly, do not always have a reputation. This, in turn, provides an additional layer of security to companies that expand into, or otherwise invest in, Qatar.Conduct your own economic survey and have accounting crunch the numbers and provide you with the tax implications of such a venture. Then, if satisfied (or, excited), contact an experienced law firm and ask them to provide you with a legal and regulatory survey.Take a look at Doha beyond the glamour of sports and see if you would like to Explore the Boundaries of Your Business.
Jan 8, 2014 2:21 PMJHI's New York HQ office is up and running for 2014 following the Holiday Season (and a burst of inclement weather). As we return from our Holiday, the United Arab Emirates has announced the observance of a Holiday of their own:
Government offices, banks and private enterprises will be closed for business on Sunday, January 12, 2014 in celebration of the birthday of the Prophet Mohammed. This should not impact international business to any great degree, as Sunday is not a workday in most other parts of the world as it is in the UAE and other GCC states.
We look forward to working on an exciting array of projects this year, and Mr. Huf plans to travel frequently throughout the Commonwealth of Pennsylvania on business related to the booming Marcellus Shale natural gas industry.
Speaking of travel, it is that time of the year when Mr. Huf begins booking public speaking appearances. Your next conference or guest lecture series will be discussed for the remainder of the year - Mr. Huf really is that dynamic and compelling. Contact JHI today to discuss subject matters he addresses and to schedule a date. Your next event will be a winner!
JHI hopes your 2014 is as interesting and prosperous as ours. Happy New Year!
Sep 10, 2013 4:34 PMJHI will be closed for business this Wednesday in observance of the anniversary of September 11, 2001. Just as JHI is proud to do work that may same day contribute to the development of a broad, self-sustaining middle class in the Middle East, JHI is honored to be a witness to the resurgence of downtown Manhattan - it really is one of the truly great comeback stories of our age.
Wednesday, September 11, will be a day of rememberance and reflection for us all. JHI will resume offering high-quality professional services on Thursday, September 12.
An additional note: JHI's website will go offline later this week for maintenance and revision. We apologize for any inconvenience this causes and are confident that you will appreciate the updates and other improvements.
Jason Huf International, pc
"Exploring the Boundaries of Your Business."