Regulatory reform could transform MENA societies and economies
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The Middle East and North Africa region is striving for progress on all fronts and a key pathway to achieving that goal is through regulatory reform. In recent years, the trailblazing regulatory enhancements introduced by many of the region’s countries have highlighted a need for visionary and streamlined regulatory transformations that deliver incredible value to individuals, businesses and governments.
Regulatory reforms can create momentum in countries, contributing to several immediate advantages that are crucial for development. These include fostering economic growth by reducing the regulatory burdens on businesses, thereby facilitating global and local trade and investment, reducing corruption and increasing investor confidence. Laws detailing industry standards can spur innovation, entrepreneurship, productivity and job creation.
Public interests are safeguarded by many laws that pertain to consumer rights, criminal codes, public health and transportation and traffic safety. On the social front, revisions to laws pertaining to child rights, elderly rights, people with special needs, welfare benefits and family protection from domestic violence have boosted well-being levels. For instance, revisions to the UAE’s employment laws led to the deployment of a universal unemployment insurance scheme and the introduction of a 4.5-day working week that strives to balance economic growth with work-life balance. Additionally, local natural environments are preserved, enabling a healthy balance between economic growth and sustainability.
Many revised regulations have delivered exceptional benefits for countries. A prime example is the revision of immigration and citizenship laws in Saudi Arabia and the UAE to attract long-term foreign talents to live, invest and work locally. For instance, the Kingdom’s Premium Residency Visa offers foreign talents a pathway to permanent residency or limited-term residency without the assistance of a sponsor. The UAE’s Golden Visa is a long-term residency status that is valid for five to 10 years, with the option for renewal. It targets investors, entrepreneurs, skilled professionals, inventors, creative workers, outstanding students, pioneering humanitarian workers and front-line heroes who have demonstrated extraordinary efforts during crises. Furthermore, in 2021, the UAE government approved revisions to the Executive Regulation of the Citizenship and Passports Law, enabling certain groups of foreign nationals, along with their spouses and children, to attain Emirati citizenship.
Governments should consider a number of key areas when embarking on regulatory reform strategies. It is vitally important for governments to design a definitive legislative agenda to prioritize the laws that need to be introduced, revised or rescinded based on rigorous evidence-based sources to validate their value and feasibility. It is equally important to harmonize some regulations according to international treaties and standards.
Governments should consider a number of key areas when embarking on regulatory reform strategies.
Sara Al-Mulla
Evolving trends in the economic, technological and societal spheres are significantly influencing the development and adaptation of regulations in different industries and sectors, sparking the ideation of new regulatory avenues that protect public interests and ensure compliance to new norms. As such, it is important that central governments have dedicated units that monitor their emergence and adopt a proactive, preemptive and futuristic approach to regulatory interventions. For instance, the growing number of data breaches and abuses of personal data has spurred the enactment of stringent data protection laws in Saudi Arabia and the UAE.
Many governments have introduced regulatory impact assessments to measure the projected value and risks associated with introducing or revising regulations. Additionally, government agencies must conduct periodic reviews of existing regulations to identify any outdated, redundant or unnecessary articles. After enactment, government agencies are required to provide regular performance-based reports on the progress of the laws to promote accountability and assess success. Administrative legislative processes must also be simplified, expedited and streamlined.
Governments should enhance all training and qualifications programs pertaining to legal professions. Special attention must be paid to cultivating subject matter experts in specialized areas in order to cater to the evolving legal landscape, such as the economy, family, welfare, the environment, immigration, healthcare, technology and maritime. It is pivotal that legal professionals within government agencies are enrolled in regular training and capacity-building programs to improve their understanding of industries and evolving trends.
Engagement with stakeholders is key to soliciting insights and ideas that could shape the thinking behind regulations. It is vital that representatives of various levels of government, citizens, industries and experts are regularly invited to engage with regulators. Government agencies may conduct public consultations or surveys to gather feedback from individuals on proposed laws or regulatory changes, which can be done via online platforms, workshops or written submissions. Many governments have established so-called sandbox programs that enable businesses to test innovative products and services with limited regulatory constraints, such as the case study offered by the UAE’s Regulations Lab, which grants licenses to try out innovations using future technologies.
Meanwhile, introducing legal aid clinics can help individuals with limited financial resources to understand their legal rights and responsibilities on personal pressing matters, such as pension plans, disability support, wrongful dismissal, social housing, divorce or domestic violence. In the UAE, such legal clinics are offered by the Ministry of Justice, the Abu Dhabi Judicial Department, the Shoor legal advice program by Dubai Courts and the Legal Clinic program offered by the Community Development Authority in Dubai.
Governments should also make all laws available on online public portals with explanatory pages that explain legal terminology in a straight-forward manner. Public awareness campaigns leveraging various forms of media should educate the public about their rights and responsibilities across various regulatory spheres and inform them about significant legal changes. Moreover, integrating legal literacy programs within schools, universities and community centers could be another avenue for creating awareness among the public.
Regulatory reform is becoming an increasingly important pathway for governments to navigate evolving landscapes.
- Sara Al-Mulla is an Emirati civil servant with an interest in human development policy and children’s literature. She can be contacted at www.amorelicious.com.
