Business
UAE introduces 10 major law changes reshaping tax, business and justice
The UAE has, in recent weeks, issued a range of new Federal Decree-Laws introducing significant reforms across taxation, business regulation, justice, public health, child welfare, trade and social protection.
The legislative updates reflect the country’s ongoing efforts to modernise its legal framework, strengthen governance, enhance public safety and align regulatory systems with international standards.
From updated narcotics and sexual offences laws to changes to VAT and organ donation rules, find out more about the new laws in the UAE.
UAE updates narcotics law with tougher penalties and expanded rehabilitation
Key changes designate the Emirates Drug Establishment as the competent authority for regulating medical products and replace references to the Ministry of Interior with the National Anti-Narcotics Authority.
The law expands rehabilitation capacity by allowing federal and private health facilities to establish specialised treatment units, subject to Cabinet-issued regulations.
Penalties are increased for pharmacies and physicians dispensing or prescribing narcotic drugs without valid authorisation, with imprisonment of not less than five years and fines of not less than AED50,000 ($13,612).
Foreign nationals convicted of narcotics offences must be deported after completing their sentence, subject to defined family-related exceptions.
UAE amends child protection law to expand custody options
The law reaffirms the best interests of the child as the guiding principle and allows custody to be granted to eligible families residing in the UAE, subject to joint applications, age requirements and executive regulations.
Custody may also be granted to an eligible woman residing in the UAE who has completed 30 years of age and is financially capable of supporting the child.
The amendments establish monitoring mechanisms, corrective plans and safeguards, including the removal of a child from custody where conditions are breached.
UAE strengthens penalties for sexual offences involving minors and prostitution
Courts may subject convicted offenders to medical, psychological and social evaluations and impose post-sentence precautionary measures where criminal risk persists.
Any person aged 18 or above engaging in sexual activity with a person under 18 faces imprisonment of not less than ten years and a fine of not less than AED100,000 ($27,225), even where consent is alleged.
Consent is not recognised unless the victim has completed 16 years of age.
Penalties are also increased for incitement or solicitation to prostitution, with harsher penalties where minors are involved.
UAE introduces inheritance courts under civil justice overhaul
Inheritance courts may now be established directly by decision of the President of the Federal Judiciary Council or the head of the local judicial authority.
The law expands appeal rights, strengthens expert evidence procedures, raises admissibility standards for appeals, and extends the right of appeal before the Court of Cassation to include decisions issued by Courts of Appeal.
The Attorney-General is empowered to file appeals independently, even where parties have not exercised appeal rights.
UAE amends organ transplant law to regulate non-human organs
Transplants may proceed only under strict medical conditions, licensing requirements and committee approval.
Violations may result in imprisonment and fines ranging from not less than AED100,000 ($27,225) to not more than AED2m ($544,500).
A national database will record all non-human organ transplants, and the UAE Cabinet is authorised to regulate transfers domestically and internationally.
UAE introduces tiered sugar tax from January 1, 2026
Drinks containing:
- 5–8 grams of sugar per 100ml will be taxed at AED0.79 per litre
- 8 grams or more per 100ml will be taxed at AED1.09 per litre
Beverages with less than five grams of sugar per 100ml, or containing only artificial sweeteners, are exempt.
UAE introduces new veterinary law to strengthen food safety
The law covers development, manufacturing, licensing, import, export, prescribing, and disposal of veterinary medical products.
It prohibits counterfeit and expired products, regulates restricted substances, and introduces a fast-track approval process for innovative veterinary treatments.
Entities have up to one year from enactment to rectify their status, subject to Cabinet extension.
UAE reforms Emirates Union of Chambers of Commerce and Industry
The General Assembly is abolished, and the Board of Directors becomes the supreme authority, with expanded strategic and operational powers.
The Chairman’s responsibilities are formally defined, strengthening governance and institutional efficiency.
UAE introduces major changes to Commercial Companies Law
The law introduces non-profit companies, allows differentiated share rights, enables private joint-stock companies to raise capital through private subscriptions, and formalises tag-along and drag-along rights.
Stricter valuation standards are introduced for non-cash capital contributions.
UAE announces new VAT rules effective January 1, 2026
Key changes:
- Removal of the self-invoicing requirement under the reverse charge mechanism
- Introduction of a five-year limit to reclaim excess refundable VAT
- Authority for the Federal Tax Authority to deny input tax deductions linked to tax evasion arrangements
The amendments aim to strengthen compliance, transparency and administrative efficiency.
