News
No NOC, No BAN Period, Qatar’s Sponsor System ‘Kafala’ Officially ‘Abolished’
Qatar has completed the preparation for the regulations of the law regulating the entry and exit of expatriates and it will come into effect from 13 December this year.
The changes are anticipated to improve the work environment through efficiency on one hand, and on the other, it is expected to end the illegal practice of visa selling and prevent bogus companies from misusing the visa laws.
If all goes well, the changes should also overhaul the image of Qatar’s labour market in the eyes of international media and rights organisations.
Among the changes, the new law abolishes the current two-year ban imposed on expatriates who want to come back to the country on a new visa. The current situation requires a no-objection certificate (NOC) from the previous employer for a former resident to take up a new job in Qatar.
The new legislation, however, will replace the sponsorship system and make the employment and stay of expats entirely contract-based, with the contract signed by a foreign worker before landing here, once the new law is in place.
In addition, employment contracts of all expatriate workers presently in the country will be replaced with new contracts.
In other words, all expatriate workers will have to sign new contracts with their employers in compliance with the provisions of the new law (No 21 of 2015).
Brigadier Mohamed Ahmed al-Atiq, assistant-director general of the Department of Border, Passport and Expatriates Affairs, explained the salient features of the new law: “Since the new law abolishes kafala (sponsorship system), a person who had previously worked in Qatar would not have to seek the approval of his former sponsor if he is recruited by a new employer.
“A foreign worker who has got a new contract to work in Qatar can come back even the next day, provided he has met the other requirements like visa,” he said.
This contract will form the basis of the understanding between a foreign worker and his employer, with the contract signed for two or five years’ duration. Both parties will be obliged to follow its clauses that will contain terms and conditions.
Once the new law is in effect, the exit permit system whereby a foreign worker needs written permission from his sponsor to travel overseas will also end and only to inform the employer of departure would be required.
If a foreign worker is fired as a punitive measure and did not appeal his dismissal or his plea was rejected by a court, he shall not be permitted to come back to Qatar before the passage of four years, according to Article 26 of the new law.
In addition, an expatriate worker deported upon a court verdict cannot come back without the approval of the Minister of Interior.
According to the new law, expatriate workers can change jobs either after the expiry of their contracts or after five years of service with their employer in the case of open-ended contracts, so long as they obtain governmental permission.
To change jobs before the contract expires, the new law specifies that the expatriate worker has to get the approval of the employer, as well as the relevant government entities.
The new law also enables expatriates to apply for exit permits themselves through the approved channels of the Ministry of Interior, without the employer’s permission. Should the request be granted, it would be issued within three working days.
In cases of emergency and the mutual agreement of both the worker and the employer, the exit permit will be granted immediately.
According to new law, no approval from former employer is required if he is recruited by a new employer. An expat can also move to another sponsor with the approval of MOI and MOLSA if the sponsor is dead or the company no longer exists.
Things you need to know about new law kafala changes:
- New law would be implemented by this year 2016.
2. New law will make employment and stay of expatiates entirely contract-based.
3. Two-year ban on a new work visa will no longer be applicable.
4. No approval from former employer required if recruited by a new employer.
5. Worker who has a new contract to work in Qatar can come back even on the next day.
6. Exit permit will not be required for travel
7. To leave Qatar, the employee needs to inform his employer three days before and apply through Metrash 2 system.
8. All presently employed expatriate workers will have present contracts replaced with new contracts by the end of this year.
9. The signing date of the fresh employment contract will be the date from when the contract will commence.
10. Employment contract has to approved by the Ministry of Labour and Social Affairs.
11. Closed contracts shall not exceed a period of five years.
12. Employees with open-ended contracts can move to another employer after spending a minimum of five years with the first employer.
13. Workers with fixed job contracts can change their work and sign new contracts if they wish so at the end of the contract period without any NOC but approval from the Ministry of Interior and the Ministry of Labour and Social Affairs.
14. An expat can also move to another sponsor with the approval of MOI and MOLSA if the sponsor is dead or the company no longer exists.
15. $13,731 (QAR50,000) fine and jail terms of up to three years for recruiters who allow their employees to work for other parties without prior official approval.
16. $2,746 (QAR10,000) to $6,865 (QAR25,000) fine for keeping passport of expatriate employee.
Article appeared first on constructionweekonline.com
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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