UNITED ARAB EMIRATES Trends and Developments Contributed by: Yasser Omar and Laryssa Perkins, Hadef & Partners LLC
preparations to ensure system readiness and avoid disruptions. Mandatory ESG: The Climate Change Law In a defining legislative move, the UAE enacted Fed - eral Decree-Law No (11) of 2024 on the Reduction of Climate Change Effects, effective 30 May 2025. This is the nation’s first legally binding climate action framework and shifts consideration of environment, social and governance (ESG) themes from a voluntary endeavour to a mandatory obligation for all entities, including public and private companies in both main - land and free zones. Key requirements include: • Measurement and Reporting: Businesses must regularly measure, document, and report their greenhouse gas (GHG) emissions through a new platform managed by the Ministry of Climate Change and Environment (MOCCAE). • Emissions Reduction: Entities are legally obligated to implement measures to reduce emissions, such as improving energy efficiency or using clean energy. Based on a proposal from the MOCCAE, the Cabinet will set annual, sector-based reduction targets. • Record-Keeping: Emissions data and records must be retained for at least five years. Entities have a one-year grace period until 30 May 2026 to ensure full compliance. Non-compliance will attract significant penalties ranging from AED50,000 to AED2 million. Modernising Family Law: The New Personal Status Law of 2025 In a landmark social and legal reform, Federal Decree Law No (41) of 2024 on Personal Status came into force on 15 April 2025. This new law replaced the previous 2005 legislation and introduced sweep - ing changes to family matters for both citizens and expatriates. The reforms aim to align family law with modern societal values while enhancing personal autonomy and fairness.
Key amendments include: • Governing Law: Non-nationals can choose the law governing their personal status matters, including marriage and divorce; however, if no such choice is made, UAE law will apply by default. • Marriage Provisions: The minimum legal age for marriage is now firmly set at 18 for both men and women. Significantly, non-Muslim women may marry without a guardian’s consent if permitted by their home country’s law, and couples can choose the legal framework that governs their marriage. • Divorce Reforms: The law streamlines divorce pro - ceedings by reducing the arbitration period from 90 to 60 days. It also introduces new grounds for divorce, such as substance abuse, certain medical conditions, and family abandonment, with shorter notice periods. • Child Custody Rights: Custody rights have been extended until the child reaches 18 for both boys and girls, a significant change from the previous age limits that differed by gender. Children aged 15 and above are now granted the right to choose which parent to live with, subject to the court’s assessment of their best interests. Either parent can choose to travel with a child for up to 60 days per year without the other parent’s consent, with the court’s authorisation. Conclusion The UAE’s 2025 legislative overhaul marks a decisive step toward creating a modern, resilient, and globally competitive legal framework. These reforms form part of a broader strategy to strengthen financial integrity, embrace technological innovation, and embed sus - tainability at the core of economic activity. Whether it is adapting to the expanded licensing regime under the New CBUAE Law, meeting stringent AML obli - gations, preparing for e-invoicing, or aligning with mandatory ESG requirements, the coming year will demand strategic planning and operational readiness. As the UAE positions itself for its next FATF evalua - tion and deepens its integration with global standards, those who act early will not only mitigate risk but may also be able to unlock new opportunities in a rapidly evolving market.
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