Welcome to the United Arab Emirates page of our Global Employee Equity at a glance series. To view other countries in this series, please visit our Global Employee Equity at a glance page.
Stock Option Plans: Employment
Labor Concerns
There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.
Communications
Although there is no requirement to do so, it is recommended that the Plan documents be translated.
Governmental filings must be made in Arabic.
Electronic execution of award agreements by employees is generally acceptable.
Stock Option Plans: Regulatory
Securities Compliance
Neither the grant nor the exercise of Options is likely to trigger any prospectus requirements.
Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.
Foreign Exchange
There are no foreign exchange restrictions applicable to the Plan.
Data Protection
Employee consent for the processing and transfer of personal data is a recommended method of compliance with existing data privacy requirements. Generally, an employer must register data processing activities (to the extent such registry exists in the relevant local authority).
Stock Option Plans: Tax
Employee Tax Treatment
An employee is not subject to tax in relation to the Plan.
Social Security Contributions
Social security contributions are not due from either the Subsidiary or the employee.
Tax-Favored Program
There is no tax-favored program applicable to Stock option plans.
Withholding and Reporting
The Subsidiary has no withholding or reporting obligations.
Employer Tax Treatment
A deduction is not applicable.
Restricted Stock and RSUs: Employment
Labor Concerns
There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.
Communications
Although there is no requirement to do so, it is recommended that the Plan documents be translated.
Governmental filings must be made in Arabic.
Electronic execution of award agreements by employees is generally acceptable.
Restricted Stock and RSUs: Regulatory
Securities Compliance
Neither the grant nor the vesting of Restricted Stock or RSUs is likely to trigger any prospectus requirements.
Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.
Foreign Exchange
There are no foreign exchange restrictions applicable to the Plan.
Data Protection
Employee consent for the processing and transfer of personal data is a recommended method of compliance with existing data privacy requirements. Generally, an employer must register data processing activities (to the extent such registry exists in the relevant local authority).
Restricted Stock and RSUs: Tax
Employee Tax Treatment
An employee is not subject to tax in relation to the Plan.
Social Security Contributions
Social security contributions are not due from either the Subsidiary or the employee.
Tax-Favored Program
There is no tax-favored program applicable to restricted stock or RSU plans.
Withholding and Reporting
The Subsidiary has no withholding or reporting obligations.
Employer Tax Treatment
A deduction is not applicable.
Employee Stock Purchase Plans: Employment
Labor Concerns
There is a risk of employees claiming that they are entitled to compensation for loss of rights under the Plan where the Plan is amended or discontinued or where their employment is terminated.
Communications
Although there is no requirement to do so, it is recommended that the Plan documents be translated.
Governmental filings must be made in Arabic.
Electronic execution of award agreements by employees is generally acceptable.
Employee Stock Purchase Plans: Regulatory
Securities Compliance
Neither the grant nor the exercise of purchase rights will trigger any prospectus requirements.
Certain restrictions may apply if the Subsidiary is incorporated or registered in the Dubai International Financial Centre.
Foreign Exchange
There are no foreign exchange restrictions applicable to the Plan.
Data Protection
Employee consent for the processing and transfer of personal data is a recommended method of compliance with existing data privacy requirements. Generally, an employer must register data processing activities (to the extent such registry exists in the relevant local authority).
Employee Stock Purchase Plans: Tax
Employee Tax Treatment
An employee is not subject to tax in relation to the Plan.
Social Security Contributions
Social security contributions are not due from either the Subsidiary or the employee.
Tax-Favored Program
There is no tax-favored program applicable to employee Stock purchase plans.
Withholding and Reporting
The Subsidiary has no withholding or reporting obligations.
Employer Tax Treatment
A deduction is not applicable.
