UAE Law and Practice Contributed by: Amir Alkhaja, Gerry Rogers, Daria Selivanova and Danila Kriuchkov, Habib Al Mulla & Partners
Corporate Transparency Following global standards, the UAE introduced UBO rules in 2020; going forward, expect stricter enforcement of economic substance and anti- money laundering rules in the corporate sphere. The government might establish a public (or at least accessible to stakeholders) UBO registry to enhance transparency (this is speculated as the UAE responds to FATF recommendations after being removed from the “grey list”). Dispute Resolution and Legal Infrastructure The UAE is continuously upgrading its judicial infrastructure to be world-class. The civil pro - cedure law was updated in 2022. In addition, the trend of consolidating and modernising laws (new laws were seen in 2021 on evidence, civil procedures, etc) may continue: watch for a possible new Commercial Transactions Code to refine processes after a few years of use. In essence, the near future in the UAE will be about implementation and refinement of the major reforms done between 2018–2022: • in foreign investment and corporate spheres, no reversal of 100% ownership policy; • in taxation, fully embedding corporate tax with investor-friendly tweaks; and • in the labour market, balancing flexibility with Emirati workforce inclusion. The UAE government’s strategies (eg, UAE Cen - tennial 2071, UAE 2031 Vision) all point toward a more competitive, diversified economy. Legally, this translates to ongoing reforms to align with global standards. Further sector-specific regula - tions are expected to develop growth sectors.
Broader digital regulation is also anticipated: a federal virtual assets law may follow Dubai’s VARA framework, and AI governance may emerge via policy. Environmental and ESG Laws With the UAE hosting COP28 (in late 2023), there is momentum for environmental regulation. New climate-related laws or amendments might be seen, for example, mandates on reporting car - bon emissions for certain industries, incentives for renewable energy investments (the UAE already has initiatives, but legal frameworks for carbon trading or green finance could emerge). Extended Producer Responsibility (EPR) for waste might be instituted in the packaging/plas - tics sector (aligning with global trends). “Personal Law” for Expatriates Not directly business-related, but worth noting, the UAE in 2022 issued a new federal Personal Status Law for Non-Muslims (effective 2023) that modernises family law for expats (civil marriage, etc). The continued liberalisation in social laws (like recent changes allowing consensual cohab - itation, alcohol permission) improves the overall environment for expatriates and businesses. In future, the UAE might harmonise some civil laws across free zones and mainland to ensure clarity for foreign investors (DIFC has its own employment and data laws, which could be interestingly cross-influenced by federal law trends, though likely to remain separate juris - dictions).
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