UAE: New Stricter Traffic Laws to Enhance Road Safety

Khaleej Times, 2 April 2025: The UAE has brought into force new traffic laws on 29 March 2025 which impose severe penalties.

Federal Decree-Law No. 14/2024 On Traffic Regulation was issued on 30 September 2024 but came into force on 29 March 2025. It provides for stringent penalties for various traffic offences including imprisonment and fines up to Dh200,000. The law aims to address serious offences including jaywalking, driving under the influence, and driving without a proper licence. Road safety experts have welcomed the changes but state that there needs to be stricter enforcement and cultural shifts in the UAE to promote road safety.

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UAE: New Zakat Law Approved

Khaleej Times, 19/03/2025: The UAE has approved a new zakat draft law, imposing fines of up to Dh1 million and imprisonment for illegal collection.

The Federal National Council (FNC) has passed a comprehensive federal law regulating the collection, distribution, and management of zakat across the UAE. The decision, led by the Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, aims to enhance transparency and accountability in the administration of zakat funds. The new law governs all aspects of zakat processes, including the investment of surplus funds in line with Sharia principles, and applies to all individuals and entities engaged in zakat activities within the UAE, including those in free zones. Certain organisations may be exempted by the Cabinet, provided they meet registration and reporting requirements.

The law introduces strict penalties for violations. Collecting, receiving, or distributing zakat without authorisation is considered a crime against public funds, punishable by imprisonment, fines of up to Dh1 million, or both. Misuse of funds, unauthorised deductions, and submitting false documents may result in further fines and imprisonment. Authorised entities also face fines of up to Dh1 million for violations such as distributing zakat abroad without permits, failing to comply with regulations, or mismanaging investments. All entities must regularise their status within a year of the law’s enactment, with an option for extension.

A key feature of the law is the creation of the ‘National Zakat Platform,’ which is a unified digital system to monitor authorised entities, beneficiaries, and fund allocations. This platform aims to ensure zakat funds are distributed efficiently to rightful beneficiaries and managed transparently. The law also restricts zakat distribution outside the UAE to exceptional circumstances like natural disasters, requiring official approval through the platform.

The law maintains the religious integrity of zakat by requiring investment surplus to be used exclusively for zakat purposes, and bars deductions for managing authorities. After extensive debates, the FNC upheld the original provision allowing traditional zakat giving to relatives and acquaintances without the need for excessive administration.

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UAE: Pioneers Drone Air Navigation Certification

Gulf Today, 13 March 2025: The UAE General Civil Aviation Authority (GCAA) has launched the region’s first national regulation for certifying air navigation service providers for drones, known as CAR Airspace Part Uspace.

This groundbreaking regulation establishes a comprehensive framework for organisations aiming to offer air navigation services for unmanned aircraft, ensuring they comply with stringent operational and safety standards.

The regulation adopts a holistic approach, addressing all critical aspects of certifying drone air navigation service providers.

It includes contracting, training, quality assurance, safety, future planning, auditing, and certification.

The primary objective is to integrate drone operations seamlessly into the existing aviation ecosystem, ensuring a cohesive, efficient, and safe airspace through licensed entities specialising in drone air navigation services.

The Director-General of the GCAA has highlighted the importance of this milestone, noting that the regulation is a testament to the UAE’s commitment to safety, efficiency, and innovation in aviation.

As drone operations are projected to double soon, this proactive regulatory framework is poised to serve as a model for integrating drone and commercial aviation, reinforcing the UAE’s status as a regional aviation leader.

The Assistant Director-General of Aviation Safety Affairs has emphasised that the regulation is crucial for safely incorporating advanced drone technology into UAE airspace.

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UAE: Cabinet Approves Executive Regulations for Legal Professionals

Gulf Today, 12 March 2025: The UAE Cabinet has recently approved new executive regulations aimed at enhancing the legal profession and legal consultation sector within the country.

These regulations are designed to bolster the judicial system, improve the nation’s rule of law indicators, and ensure effective justice through partnership and integration.

Key aspects of the regulations include the criteria and procedures for lawyers transitioning from practicing before lower courts to the Federal Supreme Court.

They also outline the requirements for trainee lawyers, the responsibilities of supervising lawyers, and the licensing process for non-national lawyers practicing in the UAE.

Additionally, the regulations cover the registration and re-registration of legal researchers and advisors, as well as their powers and responsibilities.

The regulations further detail the establishment and management of law and legal consultation firms, including licensing, suspension, and liquidation processes.

They also address the equivalency of university qualifications for legal professionals.

Lawyers’ rights and duties, their relationship with clients, and fee structures are clearly defined.

The regulations also specify conditions under which lawyers may engage in commercial activities.

Confidentiality obligations for legal researchers, advisors, and representatives are emphasised, with exceptions only in cases of preventing crimes or when required by law.

The Cabinet has also approved a regulatory framework for professional law and legal consultancy firms, aiming to enhance the legal environment and regulate the practice of legal professions according to best practices.

This framework allows Emirati lawyers and legal consultants to establish professional companies, either individually or in partnership with international firms, provided certain conditions are met.

Permitted legal forms for professional companies include partnerships, limited liability companies, and one-person limited liability companies.

All partners must be licensed professionals, ensuring compliance to Federal Decree-Law No. 34/2022 and its executive regulations.

To obtain a professional company licence, applicants must be registered Emirati lawyers or legal advisors, have certified articles of association, and secure professional insurance to cover liability for errors, thereby protecting clients’ rights and fostering trust in the legal services offered.

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UAE: Approves Remote Work for Government Entities Outside the Emirates

Khaleej Times, 10 March 2025: The UAE has announced the approval of a remote work system for government entities, allowing employees to operate from outside the country.

While remote work has been a part of federal entities since 2017, this marks the first instance of extending the policy to employees based internationally.

The system is expected to enable the UAE to access specialised skills and knowledge from around the world, enhancing the execution of projects and studies for federal entities.

The relevant authorities will be responsible for identifying roles suitable for remote work from outside the UAE.

Additionally, the country will establish guidelines outlining the conditions and responsibilities for contracted employees.

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UAE: Streamlines Tax Dispute Process for Government Entities

A new Cabinet Decision has been issued by the UAE government, aiming to streamline the procedures for government entities involved in tax disputes.

The decision, known as Cabinet Decision No. 12/2025, was published on 14 February 2025 and will come into effect on 14 April 2025.

It provides a structured framework for federal and local government entities to manage objections and appeals related to VAT on transactions conducted in their sovereign capacity.

The decision outlines that government entities must submit objections to the Tax Disputes Resolution Committee (TDRC) within 40 working days of receiving a decision from the authority.

Notably, these entities are not required to settle VAT and administrative penalties before submitting an objection.

The TDRC is mandated to decide on objections within 20 working days, and its decision is final if the total tax due and administrative fines do not exceed AED 100,000.

In terms of appeals, government entities or the authority can appeal TDRC decisions to the federal courts within 40 working days.

However, it is mandatory for the government entity to settle the VAT disputed with the authority before submitting the appeal.

Administrative penalties must be settled once a final binding decision is issued by the federal court.

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UAE: Launches Real-Time Price Monitoring for Essential Commodities

Khaleej Times, 20 February 2025: The UAE’s Economy Ministry has launched a digital platform to monitor the prices of nine essential commodities in real-time.

This initiative is designed to prevent unjustified price increases and ensure that any changes are pre-approved by the ministry.

The platform, known as the “National Digital Platform for Monitoring the Movement of Basic Commodity Prices,” allows for real-time tracking and verification of price fluctuations, ensuring they remain within established limits.

It covers cooperatives, hypermarkets, and large stores, which represent over 90% of the domestic trade in basic consumer goods across the UAE.

The Ministry has mandated that prices for cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat cannot be increased without prior approval.

The platform uses advanced data collection and analysis tools to alert the Ministry’s control team and other relevant entities about any breaches of the price ceiling.

It also aims to detect monopolistic practices or price manipulation, featuring a map function to identify locations instantly.

This initiative is part of efforts to enhance regulatory oversight and ensure transparency in consumer goods pricing, thereby protecting consumers.

Inspections have been conducted at major hypermarkets to verify compliance with the new pricing policy, confirming that prices for the nine essential items are displayed according to guidelines.

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UAE: MoHRE Unveils New Guidelines for Optional Saving System for Employees

Gulf News, 24 February 2025: The Ministry of Human Resources and Emiratisation (MOHRE) has introduced an innovative optional savings system designed to replace the traditional end-of-service gratuity.

This system empowers employees to enhance their financial well-being by growing their savings through premier investment opportunities, thereby increasing the attractiveness of the UAE labour market.

The initiative, which includes the approval of four investment funds, aims to bolster employee financial security, attract global talent, and stimulate investment activity within the UAE.

Employers begin the registration process by selecting an approved investment fund and signing a subscription agreement.

They then appoint an administrative services intermediary to manage the necessary administrative tasks.

The intermediary is responsible for enrolling employees in the system and opening individual savings accounts.

Employers contribute both basic and any additional voluntary monthly savings, while employees have the option to make lump-sum contributions.

Upon termination of employment, the disbursement of employee savings is straightforward.

Employers notify MOHRE, and employees can choose to either receive their entitlements or continue investing in the system.

Employees also have the option to withdraw their funds, subject to the system’s payout periods, and for voluntary contributions, they may opt for partial or full withdrawal through the administrative intermediary.

Operating on a defined contribution basis, the system ensures that monthly contributions made by the employer are disbursed to the employee at the end of their service.

This initiative not only strengthens the UAE’s economic framework but also provides employees with the opportunity to grow their retirement savings through investment returns.

Skilled workers, in particular, can benefit from higher payouts by selecting high-yield investment options.

The system is accessible to private sector employers, free zone entities, and specific groups such as self-employed individuals, freelancers, non-citizen government employees, and UAE nationals working in both the public and private sectors.

Employers are required to calculate monthly contributions based on an employee’s continuous service period, starting from the date of employment rather than the registration date in the savings system.

Voluntary contributions are capped at 25% of an employee’s total salary.

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UAE: Launches Blue Visa

Khaleej Times, 12 February 2025: The UAE has initiated the first phase of the Blue Visa, unveiling the specifics of this ten-year residency permit at the World Governments Summit 2025.

This innovative visa is aimed at individuals who have significantly contributed to environmental protection and sustainability, both within the UAE and globally.

In this initial phase, twenty sustainability thought leaders and innovators will be awarded the Blue Visa, as announced by the Ministry of Climate Change and Environment and the Federal Authority for Identity, Citizenship, Customs and Ports Security (ICP).

The Blue Visa is designed to recognise and support those actively engaged in environmental action.

It is available to members of international organisations, global companies, associations, non-governmental organisations, as well as global award winners and distinguished activists and researchers in the field of environmental work.

This initiative is an extension of the UAE’s Golden and Green Residencies, which were introduced earlier to attract exceptional talent to the country.

To apply for the Blue Visa, interested sustainability advocates and experts can either apply directly to the ICP or be nominated by relevant authorities within the UAE.

The first phase of the application process is conducted electronically, allowing for the submission of applications through government agencies involved in sustainability sectors, following the procedures outlined on the ICP’s website.

The ICP ensures 24/7 access to the Blue Visa service for eligible individuals via its website and mobile application, complying to the approved terms and conditions.

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