UAE Law and Practice Contributed by: Amir Alkhaja, Gerry Rogers, Daria Selivanova and Danila Kriuchkov, Habib Al Mulla & Partners
9. Looking Forward 9.1 Upcoming Legal Reforms
free zone conditions and implementation of the Pillar Two global minimum tax. Competition Law A major reform occurred with Federal Law 36 of 2023 (effective early 2024) which updates the competition regime. Looking forward, business - es should be prepared for more active antitrust enforcement. The Ministry of Economy is establishing a new Competition Regulation Committee, per the new law, to oversee compliance. More merger reviews are anticipated, and possibly the first penalties for cartels or abuse of dominance in coming years as the Ministry flexes its enhanced powers. Intellectual Property The UAE overhauled its IP laws in 2021, and the focus now is on implementation. This includes setting up the Patent Grievance Committee, dig - itising patent procedures and possibly joining international systems like the Patent Prosecution Highway. In trade marks and copyright, enforce - ment is expected to improve, with new mecha - nisms such as collective rights management and deeper co-operation with customs. The UAE may also join additional WIPO treaties. As digital and AI sectors grow, further clarity on software, data and trade secrets is likely, alongside expansion of specialised IP courts and judicial training. Data Protection and Tech Laws In 2025–2026 the UAE Data Office may become more active, issuing further guidance, perhaps conducting audits of companies’ compliance. Clarifications on cross-border data transfers are anticipated (eg, a list of countries deemed ade - quate for personal data export may be released, simplifying compliance).
The UAE’s legal landscape is dynamic, and sev - eral significant reforms are on the horizon across the fields discussed, as the country continues to modernise its business environment. Foreign Investment and Corporate Law Having removed most foreign ownership restric - tions, the UAE will likely focus on fine-tuning this liberalised regime. Clearer foreign investment screening procedures may be seen for the few strategic sectors that remain sensitive. The UAE is also crafting a new federal investment law to streamline all recent changes, however, no major new restrictions are expected, rather, the trend is continued openness. Efforts to attract targeted FDI in sectors like clean energy, technology and manufacturing can be expected, through incentives rather than Following the 2022 labour law overhaul, the UAE’s employment framework is largely sta - bilised, though further refinements could take place to address further work models. Legislative updates may further address paterni - ty leave, currently limited to five days, and refine rules around flexible work, gig economy roles and platform workers. Tax Law The corporate tax regime is brand new (effective mid-2023 for many businesses), so 2025–2026 will see the issuance of detailed executive regu - lations and clarifications. Businesses can expect a stream of guidance notes from the Federal Tax Authority on complex areas like transfer pricing, ownership limits. Employment Law
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