Sarah Malik is the founder of SOL International Ltd, a boutique legal consultancy specialising in dispute resolution, private client, tech, fashion, sport, and entertainment law. She is a UK qualified Barrister, who was awarded ‘Litigator of The Year’ at the first GCC Women in Law Awards. She undertakes international commercial arbitration as Counsel and practices commercial litigation in the DIFC and ADGM Courts. She is also a Fellow of the Chartered Institute of Arbitrators (CIArb), sits as Arbitrator and is a visiting lecturer at Middlesex University, Dubai. Her work includes cross-border advice and litigation.

HAS AI, TECHNOLOGY OR AUTOMATION STARTED TO IMPACT YOUR FIRM, OR CLIENTS IN ANY WAY?

There is now no escaping AI, and awareness and knowledge of it is spreading. As a result our clients are wanting to know easier, more cost effective and time efficient ways of doing things which involve AI, tech and automation. We are encouraging them to become familiar with tech and AI that is relevant to their business sector and to work with it rather than against it.|

WHAT IS NEW AT YOUR FIRM AND WHAT ARE YOUR PLANS FOR 2024?

Fashion, sports, and entertainment work is now fully part of our work. We have been appointed as Founding Committee members of the Fashion Law Arabia Council. This council aims to further a strategic vision of promoting legal knowledge and trends in the fashion and luxury industries in the GCC and globally. Sport, fashion, and entertainment are huge areas in the Middle East generally and we see them as areas that will only grow in importance. We also have collaborated with a Saudi Law Firm who specialises in Sport, Fashion, and Entertainment Law as we see the trajectory for these markets in Saudi Arabia as a positive one. In addition, we are involved in some exciting projects for 2024. We have also taken on a new trainee and plan on expanding our firm at both a junior and more senior level.

WHAT DISPUTE/LITIGATION TRENDS HAVE YOU NOTICED?

As Dubai has opened up with new visa options the ability to work in the region and allowed for novel forms of working, we expect to see more disputes in this area in due course. In addition, we expect to see an increase in the number of tech, cyber, ESG, and energy disputes in the region. With COP28 being held in Dubai in 2023 and all of the efforts being made to make changes in the energy sector in the region, we also expect to see this emerging area of law developing and increasing in importance.

WHICH NEW LEGISLATION/REGULATIONS HAVE HAD THE BIGGEST IMPACT ON YOU AND YOUR CLIENTS?

Employment and commercial changes have had a significant impact on our clients this year, including the introduction of a new Corporate Income Tax regime and various amendments to employment law in the UAE. The new UAE Labour Law (Federal Decree- Law No. 33/2021) which was introduced in February 2022, required all employees and companies outside the DIFC and ADGM to bring in employment law changes, for their employees, including employment contract changes by 1 February 2023. This was a very challenging deadline and the UAE government have now extended this deadline to 31 December 2023. However, the effects of this new legislation will only be seen in 2024, as and when the law settles into the legal landscape. Another significant area in the UAE has been the new Emiratisation quotas were established on 1 January, 2023, and require a 2% annual increase.

in the number of UAE nationals employed by certain companies. Companies impacted by this change are now implementing this requirement in their own workforces.

The full impact will only be seen once these provisions are fully implemented but this is a change which is already impacting the thinking and actions of UAE employers.

Another significant change came in on 30 June 2023, when all private sector employees in the UAE, excluding those in freezones, were required to register with the national unemployment insurance scheme. This change has led companies to take a look at their termination strategies which will now affect an employees’ ability to claim these unemployment benefits.

Another major change has been the introduction of Corporate Income Tax with Federal Decree-Law No. 47/2022. This has been a major change to the legal landscape in the UAE for businesses. This law came into effect from 1 June 2023, which gave companies a six month period to assess the application of the rules, model cash flow implications, consider the exemption regimes, and develop internal processes and procedures for managing compliance.

WHICH PRACTICE AREAS DO YOU EXPECT TO GROW OR CHANGE MOST IN THE NEXT 12 MONTHS?

ESG, Energy Disputes, Crypto Disputes, Data Privacy and Protection are the areas we are seeing the most change in the UAE. We also expect, real estate and construction disputes to continue to rise. There has also been a significant increase in insurance disputes from 26% in 2022 to 35% during 2023. This is another trend we would expect to continue.

In 2022 and 2023, the UAE courts continued upholding agreements to arbitrate. It is evident too that the use of ADR methods such as arbitration and mediation are becoming more popular in the UAE. We are likely to see this trend increasing, and these dispute resolution methods being increasingly adopted as a means other than litigation.

In the future we expect mediation will play an even more significant role in resolving disputes given, new mediation rules that have been published by DIAC and the trajectory in the UAE courts of utilising mediation. We are also waiting to see if the UAE will become a signatory to the Singapore Convention on Mediation.

WHAT ADVICE WOULD YOU GIVE TO UAE BUSINESSES CONSIDERING AN INCREASE IN TECHNOLOGY IN THEIR OPERATIONS?

It is vital to understand the tech available, and to understand how it will assist you and your business. There are so many different options available with varying degrees of effectiveness. With the rapid growth and interest in technology, businesses must understand that incorporating the use of technology into a workplace will only increase productivity as it will assist employees complete tasks in a more time efficient way. My advice would be to consult those who are aware of the use of technology and of its use in your sector if you are in doubt.