UAE Introduces 10 Major Law Changes Reshaping Tax, Business and Justice

The UAE has rolled out a sweeping legislative overhaul with the issuance of 10 new Federal Decree-Laws, introducing wide-ranging reforms across taxation, business regulation, justice, public health, child welfare, trade and social protection. The changes, announced in recent weeks, underscore the country’s commitment to modernising its legal framework, strengthening governance, and aligning national laws with international standards.

Among the key reforms are significant amendments to the narcotics law, which introduce tougher penalties and expanded rehabilitation options. The updated legislation strengthens regulatory oversight, allows federal and private health facilities to establish specialised treatment units, and increases penalties for unauthorised dispensing of narcotic drugs. Foreign nationals convicted of narcotics offences will be deported after completing their sentences, subject to limited family-related exceptions.

Child welfare laws have also been amended through Federal Decree-Law No. (12) of 2025, expanding custody options for children of unknown parentage. The law prioritises the best interests of the child, allowing custody to be granted to eligible families or financially capable women over the age of 30 residing in the UAE, alongside enhanced monitoring and safeguarding mechanisms.

Protections for minors have been strengthened through amendments to the Crimes and Penalties Law. The changes impose harsher penalties for sexual offences involving minors, increase punishment for prostitution-related crimes, and grant courts broader powers to impose precautionary measures, including psychological and social evaluations of convicted offenders.

In the justice sector, amendments to the Civil Procedures Code introduce specialised inheritance courts aimed at improving judicial efficiency. The reforms expand appeal rights, strengthen expert evidence procedures, and empower the Attorney-General to file appeals independently to safeguard public interest.

Healthcare legislation has also evolved, with amendments to the organ transplant law now regulating non-human organs, including animal and manufactured organs. Strict licensing, oversight and record-keeping requirements have been introduced, alongside severe penalties for violations and the creation of a national transplant database.

On the taxation front, the UAE has announced a tiered sugar tax effective January 1, 2026. Sweetened beverages will be taxed based on sugar content, while low-sugar and artificially sweetened drinks will be exempt. In addition, new VAT amendments coming into force on the same date will streamline compliance, limit VAT refund claims to five years, and give authorities greater power to combat tax evasion.

Business and trade reforms feature prominently in the legislative package. Changes to the Commercial Companies Law introduce multi-class shares, non-profit companies, private-market fundraising, and easier relocation of businesses across emirates and free zones. Governance reforms have also reshaped the Emirates Union of Chambers of Commerce and Industry, enhancing strategic oversight and operational efficiency.

Further strengthening food safety and public health, the UAE has enacted a new veterinary law regulating veterinary medical products and establishments, aligned with international standards and designed to curb counterfeit and unsafe products.

Together, these 10 Federal Decree-Laws represent one of the most comprehensive legal updates in recent years, reinforcing the UAE’s position as a forward-looking jurisdiction focused on economic growth, social protection, and robust regulatory governance.