The following comparative legal guide, published Global Legal Group looks at 2022 UAE TMT Laws & Regulations.
1. Overview
1.1 Please describe the: (a) telecoms, including internet; and (b) audio-visual media distribution sectors in your jurisdiction, in particular by reference to each sector's: (i) annual revenue; and (ii) 3–5 most significant market participants.
There are only two telecom providers in the UAE, which are: the Etisalat Group; and the Emirates Integrated Telecommunications Company ("EITC"), each operating under the brand name Etisalat and Du, respectively.
Additionally, in 2017, EITC introduced the Virgin Mobile UAE brand into the region, operating as a subsidiary service provider.
There are several audio-visual distribution channels in the UAE which include the two telecom providers mentioned above as well as private cable companies and over-the-top ("OTT") providers.
1.2 List the most important legislation which applies to the: (a) telecoms, including internet; and (b) audio-visual media distribution sectors in your jurisdiction and any significant legislation on the horizon such as the regulation of online harms or artificial intelligence (please list the draft legislation and policy papers).
The following legislations are of note:
- UAE Federal Law No. 15 of 1980 regarding printing and publishing (the "PPL").
- UAE Federal Law No. 3 of 1987 (the "UAE Penal Code").
- UAE Federal Law No. 3 of 2002 regarding the organisation of the telecommunications sector as amended (the "UAE Telecoms Law").
- UAE Federal Law No. 5 of 2012 on combatting Information Technology Crimes as amended by UAE Federal Law No. 12 of 2016 and UAE Federal Decree No. 2 of 2018 (the "Cyber-Crime Law").
- UAE Federal Law No. 11 of 2016 on the regulation and powers of the National Media Council (the "NMC Law").
- NMC Board Resolution No. 30 of 2017 (the "Media Content Regulation").
- NMC Electronic Media Activity Regulation of 2018 (the "EMR").
1.3 List the government ministries, regulators, other agencies and major industry self-regulatory bodies which have a role in the regulation of the: (a) telecoms, including internet; and (b) audio-visual media distribution sectors in your jurisdiction.
The main telecoms regulator in the UAE is the Telecomm-unications Regulatory Authority ("TRA") which was created pursuant to the UAE Telecoms Law. The National Media Council regulates audio-visual media in the UAE.
1.4 In relation to the: (a) telecoms, including internet; and (b) audio-visual media distribution sectors: (i) have they been liberalised?; and (ii) are they open to foreign investment including in relation to the supply of telecoms equipment? Are there any upper limits?
The telecoms industry remains closed and limited to the two entities mentioned in question 1.1. The audio-visual media sector has several local and foreign entities licensed in the UAE providing traditional media services as well as OTT media providers.
2. Telecoms
General
2.1 Is your jurisdiction a member of the World Trade Organisation? Has your jurisdiction made commitments under the GATS regarding telecommunications and has your jurisdiction adopted and implemented the telecoms reference paper?
Yes, the UAE is a member of the World Trade Organisation ("WTO"). The UAE has not made any commitments under the GATS regarding telecommunications.
2.2 How is the provision of telecoms (or electronic communications) networks and services regulated?
The TRA is the sole telecoms regulator in the UAE as set out in question 1.3. The TRA regularly issues new legislations as part of their regulatory framework which governs several ancillary areas related to the provision of telecom services.
2.3 Who are the regulatory and competition law authorities in your jurisdiction? How are their roles differentiated? Are they independent from the government?
The UAE took steps to provide a competition law framework with the passing of UAE Federal Law No. 4 of 2012 (the "UAE Competition Law") which was followed by its implementing regulations through Resolution No. 37 of 2014.
The telecoms industry is left out of the remit of the UAE Competition Law as we continue to see a duopoly as explained in question 1.1 above.
2.4 Are decisions of the national regulatory authority able to be appealed? If so, to which court or body, and on what basis?
The TRA makes the decisions regarding the regulation of the telecoms industry as a stand-alone body, and as the sole regulator in this industry.
Entities can choose to appeal any decisions taken against specific corporate entities before the TRA; however, there is no formal process of appeal and this does not take place before any court of law but before whichever committee has been specifically set-up at the TRA for said purpose.
Licences and Authorisations
2.5 What types of general and individual authorisations are used in your jurisdiction?
The TRA is responsible for issuing authorisations in the UAE, whether these are an individual licence or a class licence. The TRA distinguishes these two types of licences as follows:
- Individual Licence: These are issued for services which require the usage of scarce resources of spectrum and numbers and are issued for a period of 10 years.
- Class Licence: These are issued where there is no need to use scarce resources and where, due to lack of importance or significance to the public, regulatory oversight may not be required. Class licences are also issued for a period of 10 years.
2.6 Please summarise the main requirements of your jurisdiction's general authorisation.
An application for an individual or a class licence will require an applicant to fill out an application form requesting standard information regarding the entity including (a) incorporation documents, (b) a chart showing all shareholders of the applicant, (c) a network diagram of the services/facilities that wish to be offered, (d) a business plan, and (e) details of key management personnel.
In order to make an application, an entity must be incorporated in the UAE pursuant to UAE Federal Law No. 2 of 2015 (the "UAE Companies Law"). An entity must also comply with Article 28 of the UAE Telecoms Law which states that a licence will only be provided to an entity that has been established by a decision of the TRA Board. Lastly, the entity's shareholding must fall in line with any applicable resolution issued by the TRA.
2.7 In relation to individual authorisations, please identify their subject matter, duration and ability to be transferred or traded. Are there restrictions on the change of control of the licensee?
Please see our answer to question 2.6.
2.8 Are there any particular licences or other requirements (for example, in relation to emergency services) in relation to VoIP services?
As stated in question 1.1, there are currently only two authorised telco providers in the UAE which are allowed to provide their own VoIP services and have created stand-alone phone applications for this purpose. The TRA have banned all other providers of VoIP services from entering the UAE market.
In March 2020, the TRA issued an exceptional relaxation of the ban stated above and allowed several VoIP applications to be used within the UAE until further notice and in order to support the distance learning and working from home in light of the COVID-19 pandemic.
Public and Private Works
2.9 Are there specific legal or administrative provisions dealing with access and/or securing or enforcing rights to public and private land in order to install telecommunications infrastructure?
The telecommunications infrastructure is owned by one of the two authorised telco providers which are licensed by the TRA and therefore access to public or private land is not an issue.
Access and Interconnection
2.10 How is wholesale interconnection and access mandated? How are wholesale interconnection or access disputes resolved?
The TRA has the requisite powers to provide access as well as to conduct ex post investigations and issue ex ante regulation where required.
2.11 Which operators are required to publish their standard interconnection contracts and/or prices?
As there are only two authorised telco providers in the UAE, there is no open publishing of interconnection contracts as information is limited to the two entities that are eligible for interconnection.
2.12 Looking at fixed, mobile and other services, are charges for interconnection (e.g. switched services) and/or network access (e.g. wholesale leased lines) subject to price or cost regulation and, if so, how?
The TRA will only step in to regulate price or cost where there is any disagreement between the two authorised telco providers. Where there is need for the TRA to be a part of the process, consultation procedures take place which can be attended by all stakeholders.
2.13 Are any operators subject to: (a) accounting separation; (b) functional separation; and/or (c) legal separation?
There is no such separation imposed in the UAE.
2.14 Describe the regulation applicable to high-speed broadband networks. On what terms are passive infrastructure (ducts and poles), copper networks, cable TV and/or fibre networks required to be made available? Are there any incentives or 'regulatory holidays'?
This is not applicable in the UAE.
Price and Consumer Regulation
2.15 Are retail price controls imposed on any operator in relation to fixed, mobile, or other services?
This is not applicable in the UAE.
2.16 Is the provision of electronic communications services to consumers subject to any special rules (such as universal service) and if so, in what principal respects?
The TRA has issued certain directives to be followed under the most recent version of the consumer protection regulations (the "CPR") issued in March 2019 covering among other things, required items to be included in a contract and required information that a customer must be aware of when entering into a contract. The most recent version of the CPR includes the TRA's Consumer Dispute Procedures as well as renewed guidelines regarding advertising practices of licensees.
Numbering
2.17 How are telephone numbers and network identifying codes allocated and by whom?
The TRA allocates telephone numbers and network identifying codes and these are provided to the two authorised telco providers. The telco providers will then allocate the telephone numbers to users as they approach them for their services.
It should be noted that the TRA reserves the right to remove access to any specific numbers and remains the only authority able to allocate telephone numbers in the UAE.
2.18 Are there any special rules which govern the use of telephone numbers?
There are no specific rules governing the use of telephone numbers. The TRA has the authority to remove allocated telephone numbers from a licensee in the event of non-use and can choose whether to make these available in the future.
2.19 Are there any special rules relating to dynamic calling line identification presentation?
This is not applicable in the UAE.
2.20 Are there any obligations requiring number portability?
When the second telco provider was licensed by the TRA in 2008, number portability had long been spoken about and was finally announced in 2013. As of today's date, users of both telco providers can retain their numbers while switching between the two providers.
3. Radio Spectrum
3.1 What authority regulates spectrum use?
The TRA regulates spectrum use.
3.2 How is the use of radio spectrum authorised in your jurisdiction? What procedures are used to allocate spectrum between candidates – i.e. spectrum auctions, comparative 'beauty parades', etc.?
The TRA is the sole entity authorised to allocate radio spectrum in the UAE. A candidate will need to apply for a frequency spectrum authorisation in accordance with Article 50 of the UAE Telecoms Law. The TRA has put together the National Spectrum Plan, the National Table of Frequency Allocation and Radiocommunication Policy which gives the framework for all radio communication services in the UAE. The TRA is responsible for assigning the frequency spectrum to any applicant.
3.3 Can the use of spectrum be made licence-exempt? If so, under what conditions? Are there penalties for the unauthorised use of spectrum? If so, what are they?
This is not possible in the UAE.
3.4 If licence or other authorisation fees are payable for the use of radio frequency spectrum, how are these applied and calculated?
Fees related to the use of radio frequency spectrum are communicated to each applicant on a case-by-case basis and are not publicly available.
3.5 What happens to spectrum licences if there is a change of control of the licensee?
Any change of control must ensure that it abides by the TRA guidelines for shareholding restrictions as set out in the UAE Telecoms Law.
3.6 Are spectrum licences able to be assigned, traded or sub-licensed and, if so, on what conditions?
This is possible; however, it will require the approval of the TRA Board which is provided on a discretionary basis.
4. Cyber-security, Interception, Encryption and Data Retention
4.1 Describe the legal framework for cybersecurity.
The core right to privacy and confidentiality of information and trade secrets is codified in the UAE Penal Code. In order to keep up with new means of technology, the Cyber Crime Law was passed in 2012 and subsequently amended in 2016 to cover all types of cyber crime that may occur in the UAE.
The TRA views cybersecurity as a crucial element to providing a robust and efficient telecommunication infrastructure and launched the National Cybersecurity Strategy in June 2019. The aim of the National Cybersecurity Strategy is to ensure the country's preparedness in the event of a cyberattack both at the regulatory and policy levels as well as at the commercial and individual level.
4.2 Describe the legal framework (including listing relevant legislation) which governs the ability of the state (police, security services, etc.) to obtain access to private communications.
The right to privacy is enshrined in the UAE Constitution and thus is an important element of an individual's right in the UAE. The Cyber Crime Law sets out clear penalties in the event where an individual unlawfully obtains access to private communications.
4.3 Summarise the rules which require market participants to maintain call interception (wire-tap) capabilities. Does this cover: (i) traditional telephone calls; (ii) VoIP calls; (iii) emails; and (iv) any other forms of communications?
There are no such rules applicable.
4.4 How does the state intercept communications for a particular individual?
This is not applicable in the UAE.
4.5 Describe the rules governing the use of encryption and the circumstances when encryption keys need to be provided to the state.
This is not applicable in the UAE.
4.6 Are there any specific cybersecurity requirements on telecoms or cloud providers? (If so, please list the relevant legislation.)
The CPR sets out that telecom providers are obligated to take any and all reasonable measures that may be required to protect the privacy of the consumers and must ensure the safety of any information stored on their servers regarding their consumers. Telecom providers are also obligated, through the CPR, to use service providers that abide by the same standards issued by the TRA and remain responsible for any unlawful usage of consumer data by third-party suppliers.
4.7 What data are telecoms or internet infrastructure operators obliged to retain and for how long?
This is not applicable in the UAE.
5. Distribution of Audio-Visual Media
5.1 How is the distribution of audio-visual media regulated in your jurisdiction?
While the PPL and the Penal Code had long been the text of law referred to when ascertaining permitted audio-visual media content, the NMC Law established the NMC as the sole regulator of audio-visual media in the UAE. The NMC has regularly enacted regulations to improve and refine the active regulations in the country.
Most recently, through the Media Content Regulation and the ESR, it has provided a clear distinction with regards to the usage of media content in printed and digital formats as well as providing a clear platform to protect IPR.
5.2 Is content regulation (including advertising, as well as editorial) different for content broadcast via traditional distribution platforms as opposed to content delivered over the internet or other platforms? Please describe the main differences.
While long assumed that the electronic platforms were required to follow the standards set by the PPL and the Penal Code, the ESR removed any doubt surrounding this point and it is now clear that content regulation remains the same no matter the platform utilised.
5.3 Describe the different types of licences for the distribution of audio-visual media and their key obligations.
Answer not available at time of going to press.
5.4 Are licences assignable? If not, what rules apply? Are there restrictions on change of control of the licensee?
This is possible; however, it will require the approval of the NMC which is provided on a discretionary basis.
6. Internet Infrastructure
6.1 How have the courts interpreted and applied any defences (e.g. 'mere conduit' or 'common carrier') available to protect telecommunications operators and/or internet service providers from liability for content carried over their networks?
This is not applicable in the UAE.
6.2 Are telecommunications operators and/or internet service providers under any obligations (i.e. to provide information, inform customers, disconnect customers) to assist content owners whose rights may be infringed by means of file-sharing or other activities?
This is not applicable in the UAE.
6.3 Are there any 'net neutrality' requirements? Are telecommunications operators and/or internet service providers able to differentially charge and/or block different types of traffic over their networks?
The UAE does not have any specific net neutrality requirements. As mentioned in question 2.8, VoIP services have long been blocked until a temporary reprieve in March 2020 due to the COVID-19 pandemic.
6.4 Are telecommunications operators and/or internet service providers under any obligations to block access to certain sites or content? Are consumer VPN services regulated or blocked?
The TRA is responsible for regulating the content available on any webpages or websites. Simultaneously, the TRA also imposes a requirement on the telecom providers to filter the content that passes through their network and they remain responsible to block/remove access and/or report to the TRA any such instance of unlawful content.
Content is deemed unlawful if it violates public policy or values as imposed under UAE law. The TRA has provided a non-exhaustive list as to what is considered blocked content which includes morally and commercially illegal activities as well as activities that are deemed against the benefit of the State.
Proxy servers and VPNs remain prohibited where their purpose is to access prohibited content. The TRA has clarified that VPNs are permissible where their use is not to access prohibited content.
This content was originally published for ICLG.com and can be downloaded here: ICLG: UAE TMT Laws & Regulations 2022
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
