UAE introduces 10 major laws reshaping tax, business and justice

The UAE has, in recent weeks, issued new state laws that introduce major changes to the exchange across tax, business law, justice, public health, child welfare, trade and social protection.
The revision of the law reflects the country’s ongoing efforts to modernize its legal environment, strengthen governance, improve public safety and harmonize regulatory systems with international standards.
From updated narcotics and pornographic laws to changes in VAT rules and donations, find out more about the new laws in the UAE.
The UAE is revising the narcotics law with tougher penalties and expanded it again
The UAE has issued amendments to the Federal law by including narcotic drugs and psychotropic substances, strengthening enforcement, expanding regulatory powers and revitalizing regulatory oversight and revitalizing regulatory oversight.
Key changes name the Emirates drug establishment as the competent authority to control medical products and take the references of the Ministry of Interior and the National Anti-Narcotics Authority.
The law expands the power of rehabilitation by allowing public and private health institutions to establish special lead units, according to regulations issued by the Cabinet.
Penalties have increased for pharmacies and doctors who distribute or prescribe narcotic drugs without valid authorization, with imprisonment of less than five years and a fine of less than aed50,000 ($13,612).
Foreign nationals convicted of narcotics must be deported after serving their sentence, according to family-related views.

UAE amends child protection law to expand custody options
The UAE issued a Federal Domee order
The law also has the best interests of the child as the guiding principle and allows for the recruitment of eligible families residing in the UAE, subject to joint applications, age requirements and administrative criteria.
Maintenance can also be granted to an eligible UAE resident woman who has completed 30 years of age and is financially capable of supporting a child.
The amendments established screening procedures, correctional programs and safeguards, including the removal of a child from custody where conditions have been violated.

UAE toughens penalties for child sex offenses and prostitution
Amendments to the criminal and penal laws strengthen the protection of children and increase the potential for genuine employment.
The courts may call for the investigation of the case of medical, psychological and social analysis and enforce the security measures in the background where the risk of danger continues.
Any person aged 18 or over who is involved in a site with a person under the age of 18 is imprisoned for up to ten years and a fine of not less than AED100,000 ($27,225), even if consent will be suspected.
Consent is not considered unless the victim is over 16 years of age.
Penalties have increased for encouraging or soliciting prostitution, with Harsher penalties where children are involved.
The UAE introduces probate courts under the Justice underhaul civil justice system
The UAE has issued amendments to the Code of Civil Procedure, introducing probate courts and strengthening judicial efficiency.
Probate courts can now be established directly by decision of the President of the Judicial Council or the head of local authorities.
The Law expands the rights to file appeals, strengthens the procedures of technical evidence, increases the standards of accepting appeals, and extends the right to file appeals before the court of cassation enters the decisions issued by the decisions issued by the appeal decisions.
The Attorney General is empowered to file appeals independently, even where parties have not exercised their right of appeal.

The UAE has amended its illegal transplant law to regulate non-human organs
Amendments to the Federal Act on Organ Transplantation expanded the law to include non-human organs and tissues, including animals and artificial organs.
Transplants may pass under strict medical conditions, licensing requirements and committee approval.
Violations can result in imprisonment and fines ranging from less than AED100,000 ($27,225) to no more than AED2M ($544,500).
The national database will record all transfers of non-human organs, and the UAE Cabinet is authorized to control the Preparfers materfers and other countries.

The UAE is introducing a sugar tax that will kick in from January 1, 2026
The Ministry of Finance issued Cabinet Decision No. 197 of 2025, introducing a tiemetric volumetric tax on sugary livestock effective January 1, 2026.
Drinks that contain:
- 5-8 grams of sugar per 100ml will be taxed at AED0.79 per liter
- 8 grams or more per 100ml will be taxed at AED1.09 per liter
Drinks with less than five grams of sugar per 100ml per 100ml, or containing only artificial sweeteners, are excluded.

UAE introduces new animal law to strengthen food safety
The new royal law regulates medicinal and veterinary products, creating a unified regulatory framework in line with international standards.
The law covers the development, manufacture, licensing, importation, exportation, ordering, and disposal of veterinary medicinal products.
It bans legal documents and out-of-date products, regulates banned substances, and introduces a fast-track approval process for new veterinary treatments.
Businesses have up to one year from the transaction to correct their situation, according to the Cabinet extension.

UAE Reforms Emirates Union of Chambers of Commerce and Industry
UAE ASULD LEDERAL Law No. (22) of 2000, renamed the body the Emirates Union of Commerce and Industry.
The General Assembly is abolished, and the Board of Directors becomes the supreme authority, with extensible and operational powers.
The responsibilities of the Chairman are legally defined, strengthening the management and operation of the institutions.

The UAE is introducing major changes to corporate law
Amendment of the laws of commercial companies to introduce multi-Class shares, Raising money in the private market and the transfer of business of all the Emirates and free zones.
The law introduces non-profit companies, allows separate Admateated share rights, empowers joint venture companies to increase capital through private subscription, and -orfses Tag-and rights to drag and drag and rights.
Stricter benchmarks are introduced through non-monetary contributions.

UAE announces new VAT rules effective January 1, 2026
The Ministry of Finance issued an order of Federal law no. (16) of 2025, amending the VAT law effective January 1, 2026.
Key changes:
- Removal of the need to identify yourself under the backlash method
- The introduction of a five-year limit on the return of variable VAT
- The authority of the Federal tax authority to refuse tax reductions linked to tax arrangements
The amendments aim to strengthen consistency, transparency and administrative efficiency.



