Cynthia Trench, Principal, Trench & Associates legal consultants | KT subscriber

This expat lawyer helped shape reforms

Cynthia Trench first arrived in the UAE in 1989, when Dubai was still a small town and what she admires the most is how the country has evolved. “This is a nation that actively chooses progress,” she said. “I have seen each decade bring visionary and practical reforms.”

For her, one of the prime examples of how the country’s willingness to listen, adapt, and codify change for the betterment of its diverse population came in 2013. She proposed an idea to DIFC in 2013. Two years later, the DIFC Wills & Probate Registry was born. “The leadership didn’t just listen; they acted,” she said. “By 2015, a new law and registry were created, giving non-Muslim expatriates a clear, Sharia-compliant path to estate planning. That’s not just legal reform—it’s a profound understanding of the people who live and invest here.”

She added that her “complete confidence” in the country came from witnessing the government’s willingness to draft new company procedures back in the early 1990s as well as their present-day embrace of fintech, sustainability and virtual assets. “The UAE consistently demonstrates that its future is built on agility, legal clarity and inclusion,” she said.

Her work has seen immense professional growth as well. In April 1996, she became a legal consultant licensed by the Rulers Court of Dubai- widely believed to be the first expatriate woman to do so. “That milestone didn’t happen in London, Hong Kong, or New York,” she said. “It happened here. I have never felt more accepted than in the UAE and that includes my home town, Hong Kong.”

She said that living in the UAE taught her the art of cultural fluency and quiet resilience. In the early 1990s, as one of the few foreign female lawyers in a male-dominated field, she also learnt that authority comes not from volume but from value.

Perhaps one of the most important thing UAE gave her was community. She has been on the board of local schools and currently serves the British Community Assistance Foundation and the Equestrian Foundation for People of Determination. “This country didn’t just host my business; it shaped my ethos of service,” she said. “Community in the UAE means shared responsibility and quiet action, not just in good times, but especially when the path forward is unclear. The UAE’s uniqueness is that it legislates for community while also allowing neighbourly bonds to flourish. In uncertainty, I have learned that you don’t need to look far for help here, it’s often standing right next to you, ready to act.”

Summary of article of Khaleej Times

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The UAE is set to amend its Civil Transactions Law, with proposed changes affecting legal age, contracts, compensation and expat assets.

Dubai: From June 1, the UAE will implement a new Civil Transactions Law, introducing significant updates to areas such as legal capacity, contracts, civil dealings, and the management of accounts held under guardianship.

Federal Decree-Law No. 25 of 2025 was issued and published in the Official Gazette in October 2025. One of the key changes under the law is the reduction of the age of majority from 21 to 18, granting full legal capacity once an individual reaches 18.

According to the UAE legislation platform, the law is designed to strengthen individuals’ rights to manage their own legal and financial affairs, while ensuring safeguards remain in place to prevent exploitation or harm.

Legal adulthood lowered to 18 instead of 21

One of the most notable changes is the reduction of the age of majority from 21 to 18. This means individuals will be considered fully legally capable at 18, rather than 21.

Ludmila Yamalova, Founder and Managing Partner of HPL Yamalova & Plewka FZCO Legal Consultancy, said the amendment aligns with recent legal developments across the UAE.

“By way of example, the UAE’s Traffic Law reduced the minimum driving age to 17, while the Commercial Transaction Law lowered the age threshold for engaging in trade from 21 to 18. This approach is further reflected in recent banking practices, where individuals aged 18 are generally permitted to open bank accounts independently,” she said.

Article (84)

1. Every person who has reached the age of majority, enjoying full mental capacity, and has not been interdicted shall have full legal capacity to exercise their civil rights.

2. A person reaches the age of majority upon completing eighteen (18) Gregorian years.

“By way of example, the new UAE Traffic Law reduced the minimum driving age to 17, while the Commercial Transaction Law lowered the age threshold for engaging in trade from 21 to 18. This approach is further reflected in recent banking practices, where individuals aged 18 are generally permitted to open bank accounts independently.” – Ludmila YamalovaFounder and Managing Partner of HPL Yamalova & Plewka FZCO Legal Consultancy

Minors may manage assets earlier with court approval

Another reported amendment relates to the age at which minors can receive court approval to manage personal or inherited assets.

According to commentary on the new law, this age could be reduced from 18 to 15, subject to strict conditions and judicial oversight.

“The commentary suggests that the new law reduces this age to 15, subject to specified conditions and judicial oversight. If confirmed, this change would align with the UAE’s wider legislative direction of extending legal capacity earlier, albeit under structured safeguards,” Yamalova explained.

If implemented, this would allow younger individuals limited financial autonomy under court supervision.

Contract registration may become a legal requirement

Another major development under discussion is the possible introduction of contract registration as a condition for legal validity.

While full details are still awaited, Yamalova noted that registration requirements already exist for certain types of contracts in the UAE.

“By way of context, certain contracts in the UAE already require registration to be legally recognised or enforceable. Examples include tenancy contracts through Ejari, property sale and purchase agreements registered with the Dubai Land Department, and employment contracts registered with the relevant labour authorities,” she said.

What happens to expat assets in the UAE when there are no heirs

The new law may also introduce clearer rules on how a foreigner’s assets in the UAE are handled when they pass away without a will and without any legal heirs.

“Under the current framework, such assets may ultimately revert to the state. If confirmed, the new law may set out more detailed mechanisms, conditions and options for handling such cases,” Yamalova said.

“Potentially, directing certain assets towards charitable endowments may be included as alternative outcomes, subject to legal requirements.”

According to the reported provisions, where there is no will and no heir claims, financial assets in the UAE would be placed into a charitable endowment under official oversight to ensure proper management and allocation.

New rules for pre-contract negotiations and disclosure

Ahmed Odeh, Managing Partner at MIO & Partners, said public information suggests the law may introduce clearer obligations around pre-contractual conduct, particularly disclosure during negotiations.

“If implemented as described, this would mark a shift from the traditional focus on post-contractual liability, and could have practical implications for how negotiations are conducted, particularly in commercial transactions where information asymmetry exists,” he said.

“It is understood that the limitation period for certain defect-related claims may be extended. If confirmed, this would represent a notable adjustment to the balance of rights and obligations between buyers and sellers.” – Ahmed Odeh ,Managing Partner at MIO & Partners

Stronger buyer protections and clearer rules on defects

The amendments are also expected to refine rules governing sale contracts, including sales by sample or model, protection for individuals with limited legal capacity in real estate transactions, and updated provisions on latent defects.

“It is understood that the limitation period for certain defect-related claims may be extended. If confirmed, this would represent a notable adjustment to the balance of rights and obligations between buyers and sellers,” Odeh said.

Under the proposed changes, buyers may be able to reject defective goods, accept them with a price reduction, or request a defect-free replacement, offering clearer legal backing when goods or property fail to meet expectations.

Compensation beyond blood money in injury and death cases

Another reported change is the potential to award compensation beyond traditional blood money or assessed compensation in cases involving death or injury.

This would apply where material or moral harm is not fully addressed by existing compensation mechanisms.

“If applied as indicated, this would reflect a move towards fuller compensation in serious injury and fatality cases, addressing issues that have previously arisen in practice,” Odeh said.

This article was originally published on January 12, 2026 and has been updated since.

Summary of article of Gulf News by Zainab Husain, Features Writer

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isitors to the UAE can now open digital bank accounts within minutes using a new ‘Tourist Identity’ initiative launched on Wednesday, authorities said.

The Central Bank of the UAE (CBUAE), in collaboration with the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) and Abu Dhabi Commercial Bank (ADCB), said the service allows non-resident visitors to open accounts instantly and securely through a fully digital process.

Powered by biometrics and facial recognition, ICP offers visitors a Tourist Identity as soon as they land in the UAE. The initiative links this digital identity system with ADCB’s mobile banking application, enabling visitors to open bank accounts within minutes and instantly access essential banking services, including digital debit cards.

Previously, non-residents and visitors could open certain UAE bank accounts, but the process was document-heavy. The new initiative shifts that process to an official digital identity-led model, allowing tourists to open an account within minutes.

Officials said the move is aimed at boosting financial inclusion and accelerating the country’s push towards a digital payments ecosystem, while reducing reliance on cash transactions.

Saif Humaid Al Dhaheri, Assistant Governor for Banking Operations and Support Services at the CBUAE, said the initiative connects visitors to the UAE’s national payment ecosystem, including the ‘Jaywan’ card scheme and the instant payment platform ‘Aani’.

“The initiative contributes to enhancing ease of doing business and delivering an integrated and secure banking experience for visitors from the moment they arrive in the UAE,” he said.

Major General Suhail Juma Al Khaili, Acting Director General of Citizenship at ICP, said the system enables multiple sectors to deliver services seamlessly to visitors using advanced identification technologies.

ADCB Group CEO Ala’a Eraiqat said the bank’s participation reflects a push to align banking innovation with the UAE’s tourism economy and enhance the country’s attractiveness as a global financial hub.

Summary of article of Khaleej Times by Sahim Salim

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This latest development reflects the UAE’s continued commitment to enhancing its real estate sector and making residency opportunities more accessible to a wider range of property owners.

What’s New?

• Single Property Owners
  Under the updated criteria, individuals who own a single property are now eligible to apply for the 2-year residence visa without any minimum property value requirement. This marks a significant shift from previous thresholds and opens the door for more investors to qualify.

• Multiple Property Owners
  For individuals who jointly own property, each owner must hold a minimum share valued at AED 400,000 or more to be eligible for the visa.

What This Means for Property Owners

This update significantly expands access to UAE residency through property ownership. By removing the minimum value requirement for sole owners and maintaining a reasonable threshold for co-owners, the UAE is making it easier for investors of varying capacities to benefit from long-term residency.

The revised framework is expected to encourage increased investment in the real estate market while providing greater flexibility and inclusivity for property owners.

Trench & Associates FZCO (c) 2026

The UAE Government has issued a new law regarding civil transactions, and reducing the age of majority from 21 lunar years to 18 Gregorian years.

The new law aims to establish a comprehensive and integrated legal framework — shifting the way civil transactions are regulating in the country.

The new law represents a pivotal legislative milestone. It is part of the national legislative trajectory focused on modernising the legal framework. It adopts a practical approach that simplifies the understanding of legal provisions, unifies legal references, and eliminates duplication with recently enacted special laws.

From a judicial perspective, the law expands the scope of judicial reasoning and grants courts broader discretion when referring to the principles of Islamic Sharia in cases where an applicable legislative provision is absent.

Where no statutory rule exists, either explicitly or implicitly, the judge may refer to the principles of Islamic Sharia and select the solution that best achieves justice and public interest in accordance with the circumstances of each case, without being bound by a specific school of jurisprudence or one single Sharia doctrine.

This approach strengthens the role of the judiciary in keeping pace with societal developments. Sharia principles can now also be applied in the absence of special legislation governing matters relating to persons of unknown parentage, missing persons, and absentees.

Proprietary rights

The law has reorganised the rules governing usufructuary construction rights. It now requires the contract to be registered with the competent authority. It also introduces provisions governing the obligations of the holder of such rights and allows the parties to determine the duration thereof.

Under this law, financial assets in the UAE which belong to a foreigner with no heirs shall be designated as a charitable endowment, subject to supervision by the competent authority to ensure proper management and allocation.

In addition, the new legislation introduced a new framework governing assignment, including the assignment of rights, and established provisions for the protection of possession through preventive actions aimed at halting new acts of encroachment before harm occurs.

Protecting free will

The law adopts clearer legal concepts and reinforces individual legal capacity, protecting free will in legal acts and contracts. This approach balances empowering individuals to manage their legal and financial affairs with safeguarding them against exploitation or harm.

Reduction of age of majority

A core reform concerns the age of majority, which has been reduced from 21 lunar years to 18 Gregorian years, aligning with prevailing comparative legal systems. This change unifies the legal age for full capacity, ensures consistency with other national legislation such as juvenile and labour laws, and harmonises civil and criminal responsibility standards.

In the same context, the law lowers the age at which a minor may seek judicial authorisation to manage their assets from 18 Hijri years to 15 Gregorian years, in support of entrepreneurship and youth participation in economic activity within a clear and stable legal framework.

Judicial assistance for those who require it

People who require assistance due to incapacity to express their will can now get a court-appointed judicial assistant to support them in acts serving their best interests.

Contractual negotiations

The new law has a framework governing pre-contractual negotiations. It imposes an obligation to disclose any fundamental information to ensure informed and conscious contractual decision making.

It also introduces the concept of a framework agreement to regulate recurring or long-term contractual relationships by predefining essential terms, reducing time and cost, and ensuring consistent legal reference for subsequent contracts.

Regarding contractual capacity, financial acts of a discerning minor involving both benefit and detriment are deemed voidable in the minor’s interest rather than suspended, granting the guardian the right to seek annulment within one year from knowledge, and allowing the minor to seek annulment within one year after reaching majority.

Additional blood money

The new law also permits the combination of blood money or assessed compensation with additional damages where death or injury results in material or moral harm not fully covered by blood money or assessed compensation.

Sale contracts

The law updates provisions governing sale contracts, including clearer regulation of sale by sample and by model, protection of persons lacking full capacity in cases of gross inadequacy in real estate sales, and enhanced rules governing latent defects.

Buyers are granted the option to reject the goods, accept them with price reduction, or allow the seller to provide a defect-free substitute. The limitation period for claims relating to latent defects has been extended from six months to one year from delivery, unless a longer guarantee is agreed.

Disputed rights

The law introduces detailed rules governing the sale of disputed rights, prohibiting acquisition by judges, prosecutors, court officials, and attorneys involved in the dispute, under penalty of nullity, to safeguard judicial integrity.

Corporate, non-profit companies

Corporate provisions were modernised to align the civil transactions law with commercial legislation. The law distinguishes between civil and commercial companies based on activity and legal form, permits single-person companies, regulates partner withdrawal, continuation of companies, and liquidation procedures, and enhances corporate stability.

A dedicated legal framework for nonprofit companies was introduced, requiring reinvestment of profits into the company’s objectives.

The law also establishes a modern regime for professional companies, regulates ownership, naming, liability, and introduces independent regulation of “mudaraba contracts” outside the scope of company law.

Employment contracts

Provisions governing contracts of works were updated to clarify responsibilities, regulate termination, address unforeseen circumstances affecting contractual equilibrium, and empower courts to restore balance through adjustment or termination.

Insurance

Insurance provisions were refined, including a comprehensive framework for takaful insurance. Rules governing guarantees were reorganised to protect guarantors and ensure equitable enforcement.

Here are the key provisions of the new federal decree law:

1. It is the largest federal law in the UAE and the primary reference for most federal legislation, establishing the general framework and foundational principles governing legal acts and contracts among members of society.
2. The new law is a comprehensive legislative update aligned with contemporary legislative developments. It enhances the efficiency of application through by adopting more precise and clearer legal concepts that reflect the reality of transactions. It also repeals provisions regulated under recent special laws, in line with legislative updates and to avoid duplication.
3. The age of majority has been reduced from 21 lunar years to 18 Gregorian years, unifying the legislative time reference and reducing practical challenges. This also amends the age at which a minor may seek authorisation to manage their assets from 18 Hijri years to 15 Gregorian years, in support of entrepreneurship and youth empowerment.
4. It introduces new provisions to enhance legal capacity and protect free will, alongside updated rules governing legal acts and contracts, reinforcing legal certainty and limiting disputes.
5. The new law grants judges broader discretion in jurisprudential reasoning when applying the principles of Sharia, to achieve justice without restriction to a single Sharia doctrine.
6. It introduces provisions governing pre contractual negotiations, obliging parties to disclose fundamental information to ensure informed contractual decisions, enhance trust, and reduce judicial disputes.

Summary of article of Khaleej Times by Supreeta Balasubramanian

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The new Civil Transactions Law forms part of a continuous national legislative trajectory focused on modernising the legal framework. It adopts a practical approach that simplifies the understanding of legal provisions, unifies legal references, and eliminates duplication with recently enacted special laws.

This approach enhances the efficiency of application, reduces procedural complexities, and contributes to building a more coherent and harmonious legislative system, in support of the federal government’s comprehensive development agenda founded on the rule of law.

From a judicial perspective, the law expands the scope of judicial reasoning and grants courts broader discretion when referring to the principles of Islamic Sharia in cases where an applicable legislative provision is absent.

Where no statutory rule exists, either explicitly or implicitly, the judge may refer to the principles of Islamic Sharia and select the solution that best achieves justice and public interest in accordance with the circumstances of each case, without being bound by a specific school of jurisprudence or one single Sharia doctrine.

This approach strengthens the role of the judiciary in keeping pace with societal developments and the evolving nature of modern transactions. The law also provides for the application of Sharia principles in the absence of special legislation governing matters relating to persons of unknown parentage, missing persons, and absentees.

The substantive amendments introduced by the new Decree Law aim to achieve legislative integration and reinforce coherence between general legal principles and special regulatory frameworks, ensuring clarity and stability in legal application.

The comprehensive review of the law took into account practical challenges faced by the judiciary, while respecting the competencies of local authorities in regulating certain matters, issuing licenses, and supervising activities related to civil transactions and local regulations within their respective jurisdictions. The Law affirms the continued applicability of such local legislation within the scope of each emirate’s authority, while preserving the unity and integrity of the federal legislative framework and ensuring harmonisation between federal and local roles.

To prevent duplication, provisions overlapping with other legislation were removed. With respect to proprietary rights, the law reorganised the rules governing usufructuary construction rights, requiring registration of the contract with the competent authority and providing for nullity in the absence of registration. It also introduced provisions governing the obligations of the holder of such rights and allowed the parties to determine the duration thereof. The Law further provides that financial assets located within the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment, subject to supervision by the competent authority to ensure proper management and allocation.

In addition, the new legislation introduced a new framework governing assignment, including the assignment of rights, and established provisions for the protection of possession through preventive actions aimed at halting new acts of encroachment before harm occurs.

The Law adopts clearer legal concepts aligned with contemporary transactional realities, reinforcing individual legal capacity and protecting free will in legal acts and contracts. This approach balances empowering individuals to manage their legal and financial affairs with safeguarding them against exploitation or harm.

A core reform concerns the age of majority, which has been reduced from twenty one lunar years to eighteen Gregorian years, aligning with prevailing comparative legal systems. This change unifies the legal age for full capacity, ensures consistency with other national legislation such as juvenile and labour laws, and harmonises civil and criminal responsibility standards, thereby enhancing legal clarity and coherence.

In the same context, the law lowers the age at which a minor may seek judicial authorisation to manage their assets from eighteen Hijri years to fifteen Gregorian years, in support of entrepreneurship and youth participation in economic activity within a clear and stable legal framework.

The Law introduces provisions addressing persons requiring assistance due to incapacity to express their will, empowering courts to appoint a judicial assistant to support such individuals in acts serving their best interests.

The new Decree Law establishes an advanced framework governing pre-contractual negotiations, imposing an obligation to disclose any fundamental information to ensure informed and conscious contractual decision making. This enhances trust between parties and reduces disputes before they arise.

It also introduces the concept of a framework agreement to regulate recurring or long-term contractual relationships by predefining essential terms, reducing time and cost, and ensuring consistent legal reference for subsequent contracts.

Regarding contractual capacity, financial acts of a discerning minor involving both benefit and detriment are deemed voidable in the minor’s interest rather than suspended, granting the guardian the right to seek annulment within one year from knowledge, and allowing the minor to seek annulment within one year after reaching majority.

The new Law also permits the combination of blood money or assessed compensation with additional damages where death or injury results in material or moral harm not fully covered by blood money or assessed compensation. This reform addresses practical judicial challenges and affirms the principle of full reparation.

The Law updates provisions governing sale contracts, including clearer regulation of sale by sample and by model, protection of persons lacking full capacity in cases of gross inadequacy in real estate sales, and enhanced rules governing latent defects.

Buyers are granted the option to reject the goods, accept them with price reduction, or allow the seller to provide a defect-free substitute. The limitation period for claims relating to latent defects has been extended from six months to one year from delivery, unless a longer guarantee is agreed.

The Law introduces detailed rules governing the sale of disputed rights, prohibiting acquisition by judges, prosecutors, court officials, and attorneys involved in the dispute, under penalty of nullity, to safeguard judicial integrity.

Corporate provisions were modernised to align the Civil Transactions Law with commercial legislation. The Law distinguishes between civil and commercial companies based on activity and legal form, permits single-person companies, regulates partner withdrawal, continuation of companies, and liquidation procedures, and enhances corporate stability.

A dedicated legal framework for nonprofit companies was introduced, requiring reinvestment of profits into the company’s objectives, thereby supporting sustainable development.

The Law also establishes a modern regime for professional companies, regulates ownership, naming, liability, and introduces independent regulation of “mudaraba contracts” outside the scope of company law.

Provisions governing contracts of works were updated to clarify responsibilities, regulate termination, address unforeseen circumstances affecting contractual equilibrium, and empower courts to restore balance through adjustment or termination.

Insurance provisions were refined, including a comprehensive framework for takaful insurance. Rules governing guarantees were reorganised to protect guarantors and ensure equitable enforcement.

The new Civil Transactions Law reflects a modern legislative approach that balances legal authenticity with contemporary needs, reinforces legal certainty and trust, supports individuals and institutions, and contributes to the sustainability of economic and social development in the State.

Summary of article of Emirates News Agency – WAM

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The Decree Laws also further alignment of the national regulatory ecosystem with the highest international standards and reinforce the independence of the Capital Market Authority and its role in safeguarding the soundness and stability of the capital markets sector and ensuring fair competition.

The two Federal Decree Laws aim to preserve the stability and integrity of the capital markets sector and define the core mandates of the Capital Market Authority, foremost among which are regulating licensed financial activities and issuers, supervising and overseeing them in accordance with international standards, issuing regulations and standards to ensure fair and effective financial practices, supporting principles of governance, monitoring and analysing system-related risks, and developing the global standing of the UAE capital markets sector as a financial centre with a strong international reputation.

The two Federal Decree Laws seek to enhance alignment with global best practices and compliance with the requirements of international organisations concerned with the financial sector, including the International Organization of Securities Commissions, the World Bank, the International Monetary Fund, and the recommendations of the Financial Action Task Force, among other requirements that contribute to improving international assessments. Additionally, the two Decree Laws support enhanced international cooperation, facilitate mutual recognition procedures, and enable the recognition of financial products across jurisdictions.

In the area of consumer protection and financial inclusion, the two Federal Decree Laws establish an integrated framework that obliges licensed persons to enable all community segments to access appropriate financial services, in line with digital transformation and financial technology developments, while supporting sustainability and leadership in financial activities and services.

The framework also provides for national awareness programmes in cooperation with the financial sector and civil society institutions, and affirms the continuation of established positive practices, particularly those related to aligning credit facilities with client income levels and protecting clients from irresponsible practices.

The Federal Decree Law concerning the Regulation of Capital Markets introduces proactive early intervention measures to address indicators of deterioration in the financial position of licensed persons, to ensure the financial stability of financial activities and services and protect clients.

These measures include activating recovery plans, imposing additional capital and liquidity requirements, adjusting strategies and administrative and operational structures, appointing temporary committees or placing licensed persons under direct administration, taking merger, acquisition, or liquidation measures when necessary, and applying special measures where a licensed person fails to rectify its position.

Pursuant to the Decree Law, the Capital Markets Authority, in its capacity as the resolution authority, plays a central role in managing financial crises through the dismissal and appointment of management, the appointment of a temporary administrator to manage the licensed person and its assets, capital restructuring, and the implementation of rescue measures to ensure the continuity of critical activities.

With regard to administrative sanctions, the Decree Laws provide for raising administrative fines in proportion to the gravity of violations and the size of transactions, and authorise the Authority to impose proportional fines of up to ten times the profit realised by the violator or the 10 times the value of the loss avoided.

It also allows for reconciliation with violators prior to the issuance of final judicial decisions and permits the publication of sanctions on the official website of the Capital Markets Authority, thereby enhancing transparency and market discipline.

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This also allows establishments that employed Emiratis prior to the specified date to adjust their salaries to meet the new minimum wage by 30th June 2026.

In a press statement, the Ministry clarified that the new minimum wage for Emiratis in the private sector applies to new citizen work permits, as well as those being renewed or amended starting from 1st January 2026.

Khalil Ibrahim Al Khouri, Under-Secretary of Labour Market & Emiratisation Operations at MoHRE, emphasised that the increased minimum wage for Emirati talent in the private sector falls within the framework of the Emiratisation strategy, which adopts a phased approach to raising the minimum wage of citizens in the private sector.

He explained that the strategy began with a minimum salary of AED4,000, followed by AED5,000, and now to AED6,000 per month, effective as of 2026. This gradual adjustment is designed to reflect prevailing market wages based on the nature of the job, and to allow private sector establishments sufficient time to implement these staggered salary increases.

He also called on establishments to amend the employment contracts of Emirati employees in line with the new minimum salary before the set deadline of 30th June 2026, noting that the minimum salary for all Emiratis working in the private sector must be AED6,000 by that date.

He added that several measures would be implemented against non-compliant establishments starting 1st July 2026, including disqualifying citizens whose salaries remain unadjusted from contributing to Emiratisation targets for establishments covered by relevant policies, as well as suspending new work permits for such establishments until salaries comply with the new minimum wage.

Al Khouri lauded private sector establishments for their unwavering commitment to Emiratisation targets and policies since their implementation, noting that this dedication has been significantly bolstered by the Nafis programme, and particularly its digital platform, which features a wide pool of qualified Emirati talent ready for available roles, in addition to the various incentives and benefits offered by the Ministry to establishments fulfilling their Emiratisation objectives.

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The UAE has issued a new Federal Decree-Law introducing major amendments to the Commercial Companies Law, marking the latest step in a broader 2025 reform programme aimed at strengthening the country’s position as a global business destination.

The new provisions modernise corporate structures, expand financing options, and create more flexible pathways for businesses operating across the UAE’s diverse jurisdictions. Together, these changes are designed to increase competitiveness, support innovation and attract new investment across both commercial and social sectors.

One of the most notable updates is the formal introduction of the non-profit company — an entirely new category within the UAE’s business landscape. Unlike traditional companies, non-profit entities must reinvest all net proceeds back into pursuing their stated objectives, rather than distributing earnings to shareholders or partners. By establishing this model in federal law, the UAE aims to provide a transparent and credible vehicle for social, cultural and developmental projects. It also opens the door for philanthropic organisations and mission-driven initiatives to operate with clearer governance and stronger legal protection.

The decree-law also expands how companies can structure their capital, allowing them to issue multiple classes of shares or stakes with different rights attached. These may include distinct voting rights, dividend priorities, redemption rules or liquidation preferences, as determined in the company’s founding documents. This aligns the UAE more closely with international financial centres and supports businesses involved in private equity, venture capital, family enterprise structuring and corporate reorganisations. For investors, this flexibility means more tailored arrangements and better alignment between financial contribution and decision-making power.

In a major shift for financing, private joint-stock companies may now raise capital through private subscriptions on licensed UAE financial markets. Previously, companies seeking such funding often had to convert into public joint-stock firms — or look abroad for private capital structures. The new provision allows companies to access institutional and qualified investors domestically while retaining the advantages of a private corporate form. It is expected to reduce reliance on offshore funding hubs and channel more investment activity into the UAE’s financial ecosystem.

Another key development is the regulation of how companies can relocate within the UAE or between onshore jurisdictions and financial free zones without losing their legal identity. The law sets out clear requirements for shifting a company’s registration from one emirate to another or between mainland regulators and free zone authorities. This clarity strengthens the mobility of businesses, improves dispute prevention and ensures that the rights of minority shareholders are protected during any move. For companies expanding or restructuring across the UAE, the ability to relocate without liquidating and reincorporating represents a significant operational advantage.

The decree-law also modernises the rules governing share transfers and shareholder agreements. It formally recognises mechanisms such as tag-along and drag-along rights — tools widely used internationally to manage the sale of shares and protect investors, especially in mergers and acquisitions. By embedding these tools within corporate law, the UAE reduces the need for complex side agreements and promotes consistency in handling shareholder exits, takeovers and internal reorganisations. It also establishes procedures for handling shares when a shareholder or partner dies, offering greater continuity for family-owned businesses, which form a core part of the UAE’s economic fabric.

Transparency is further enhanced through stricter controls on valuing in-kind contributions to capital. Any non-cash assets contributed to a company — whether equipment, real estate or intellectual property — must now be assessed by accredited valuers under clearly defined standards. These measures aim to prevent inflated valuations and ensure fairness for all partners and investors.

Sunil Ambalavelil, a prominent lawyer and CEO of Kaden Boriss, said while this decree-law is the most recent update, it forms part of a wider wave of reforms introduced throughout 2025 to modernise the UAE’s corporate environment. “Earlier changes this year clarified how the Commercial Companies Law applies across onshore jurisdictions, free zones and foreign companies operating in the country. Free zone entities maintain their own regulatory frameworks, but when they conduct activities on the mainland — through branches, representative offices or service operations — they must comply with federal requirements. This clarification provides multinationals and regional groups with greater certainty when structuring cross-border UAE operations.”

The 2025 amendments represent a significant leap in the evolution of UAE’s corporate landscape, setting the stage for a more fluid, competitive, and globally integrated business environment. What stands out is the enhanced mobility for free zone entities and the ease of corporate transformations in the UAE. For businesses, this means they can restructure, scale operations across emirates, access new markets, and streamline ownership structures with far greater ease. The amendments also strengthen shareholder rights by clarifying mechanisms for share transfers, and ensuring equitable treatment of stakeholders, creating a more transparent, secure, and balanced ownership framework for business owners in the UAE.

Other adjustments in 2025 strengthened governance and reduced operational bottlenecks. Provisions were introduced to prevent management gaps, such as rules that allow a manager’s resignation to take effect after 30 days if no action is taken, and measures that allow boards to continue operating for up to six months after their official term expires. Authorities also gained the ability to appoint directors in cases where shareholders cannot reach agreement, ensuring continuity in companies facing internal deadlock.

Additional updates expanded flexibility for raising capital and structuring ownership. Private joint-stock companies were granted the ability to conduct private placements, while LLCs were permitted to issue multiple share classes for the first time — an important step in aligning local companies with global investment practices. Rules around in-kind contributions were tightened through mandatory accredited valuations, balancing business flexibility with investor protection.

Ambalavelil said taken together, the latest decree-law and the broader 2025 reforms reflect a consistent strategy: to build a business environment that is globally competitive, legally transparent and adaptable to the needs of modern enterprises. “By introducing non-profit companies, enhancing capital structures, strengthening governance and enabling seamless corporate mobility, the UAE is positioning itself as a jurisdiction where businesses — from start-ups to multinational groups — can grow, innovate and operate with confidence in a fast-evolving global economy,” said Ambalavelil.

Summary of article by : Khaleej Times by Issac John

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Dubai has launched Free Zone Mainland Operating Permit to enable free zone companies to operate in Dubai’s mainland through a structured permit system.

“This move eases cross-jurisdiction operations, opening cost-effective, low-risk pathways for businesses to engage in domestic trading and secure government contracts, and fostering growth for small enterprises and multinationals alike,” Dubai’s Department of Economy and Tourism (DET) said on Wednesday.

In its initial phase, the new permit covers non-regulated activities including technology, consultancy, design, professional services, and trading, with plans to extend to regulated sectors.

The Free Zone Mainland Operating Permit is valid for six months at a cost of Dh5,000 renewable for the same fee every six months.

“Free zone companies engaging in mainland activities will be subject to 9% corporate tax on related revenues and must maintain separate financial records in line with Federal Tax Authority (FTA) requirements, promoting transparency and regulatory harmony. Moreover, businesses that avail this permit can use their existing staff in mainland operations, without the need to recruit new ones,” DET noted.

10,000 firms to benefit

By bridging free zone and mainland operations, DET noted, “The initiative is projected to boost cross-jurisdictional activity (in Dubai) by 15-20 per cent in the first year, benefitting over 10,000 active free zone firms and allowing companies to expand into local trading, integrate with domestic supply chains, and unlock access to government tenders and contracts worth billions annually — opportunities that were previously reserved for mainland-licensed entities.”

“We are enhancing ease of doing business while opening new avenues for growth, from domestic trading to government tenders,” said Ahmad Khalifa AlQaizi AlFalasi, CEO of Dubai Business Registration and Licensing Corporation (DBLC), adding: “This initiative cements Dubai’s position as a benchmark for regulatory innovation and further reinforces its commitment to progressive, business-friendly policies, driving job creation, entrepreneurship, and a competitive edge that attracts investors worldwide.”

How to apply

Eligible free zone companies holding a Dubai Unified Licence (DUL) can apply digitally via the Invest in Dubai (IID) platform. According to DET, the process is entirely online, ensuring efficiency for SMEs, startups, and incorporation agents seeking mainland access.

More details can be found on the Invest in Dubai website

Summary of article by : Khaleej Times by Angel Tesorero

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