Extensive Reforms in the UAE Commercial Legislations and Regulatory System
During these immediate past two years UAE witnessed a wide range of reforms, modifications, amendments in the country’s legal and regulatory framework aiming to bolster economic, investment and commercial prospects. The reforms intend to keep the momentum of the developmental achievements of the country and to reflect its impending aspirations. Over 40 laws are included in the changes, which together represent the largest legal reform in the young nation’s 50-year history. The repealing/amendments aim to develop the legislative and regulatory structure in various sectors, including investment, trade, industry, as well as commercial company, regulation and protection of industrial property, copyright, trademarks, commercial register, electronic transactions, trust services, factoring and residency. The new legislative changes came after intensive coordination at both the local and federal levels and adopting global best practices in the global legal system.
Here are some of the earlier laws and their revised versions:
| Revised Laws | Annulled/Amended Laws | Significant Reform |
| Federal Decree Law No. 46 of 2021 on Electronic Transactions and Trust Services | Federal Law No. 1 of 2006 on Electronic Commerce and Transactions. | Keeping pace with technological development and enhance ongoing digital transformation. The law gives digital signatures the same weight as a handwritten signature, a step that obviates the need for personal presence to seal transactions. |
| Federal Law No. 11 of 2021 on the Regulation and Protection of Industrial Property Rights | Federal Law No. 17 of 2002 on Regulation and Protection of Industrial Property of Patents, Industrial Drawings and Designs | Dedicated to patents, industrial designs, integrated circuits, non-disclosure agreements and utility certificates. It applies across the UAE (including free zones). |
| Federal Decree Law No. 38 of 2021 on Copyrights And Neigbouring Rights | Federal Law No. 7 of 2002 on Copyright | The amendments offer special benefits for people of determination to enhance their benefit and participation in this vital sector. |
| Federal Decree Law No. 36 of 2021 on Trademarks | Federal Law No. 37 of 1992 on Trademarks | The amendments offer protection to three-dimensional trademarks, holograms, sound trademarks such as musical tones associated with a company and that distinguish its products, and smell trademarks such as creating a distinctive scent for the company or brand. The updates also include registering geographical names of trademarks or products. |
| Federal Decree Law No. 37 of 2021 on the Commercial Register | Federal Law No. 5 of 1975 on the Commercial Register | Allowing local authorities in each emirate to retain the right to establish and manage their commercial records, including registration, data monitoring and change. |
| Federal Decre Law No. 32 of 2021 on Commercial Companies | Federal Law No. 2 of 2015 on Commercial Companies | The law allows investors and entrepreneurs to establish and fully own onshore companies in all sectors, excluding a small number of reserved “strategic activities”. |
| Federal Decree Law No. 25 of 2022 – UAE Industrial Law | Federal Law No. 1 of 1979 – Industrial Law | The law strengthens the UAE’s position as an industrial global hub that attracts quality investments through incentives and enablers, including the National In-Country Value program (ICV), Industry 4.0 and Technology Transformation Program. |
| Federal Law No. 42 of 2022 – UAE Civil Code | Federal Law No. 11 of 1992 – UAE Civil Code | Whilst the new law does not overhaul civil procedure in the UAE, it introduces some significant changes. In particular the New Law provides for a change to service outside the jurisdiction; a confirmation that cheques are “enforceable instruments” and changes in relation to appeals, including the manner in which the Court of Appeal will deal with appeals before it and changes to the period for appeals to the Court of Cassation. |
| Federal Decree Law No. 50 of 2022 –the Commercial Transactions Law | Federal Law No. 18 of 1993 – the Commercial Transactions Law | The new law adopts advanced and flexible legislative mechanisms and keeps pace with the modern reality of real and virtual businesses. |
| Federal Decree Law No. 35 of 2021 on Bankruptcy | Replaces the Federal Law No. 9 of 2016 – Bankruptcy Law | This amendment seeks to clarify when a debtor’s directors and managers can be held personally liable for the company’s debts if they cannot be repaid. |
| Federal Decree Law No. 18 of 2022 (Amended Decree Law) relating to Value Added Tax | Federal Decree Law No. 8 of 2017 relating to Value Added Tax | Amended Decree Law to allow the FTA an additional four years to undertake an audit provided that it has issued a notice for audit or assessment before the expiration of the general statute of limitations of five years. |
| Federal Decree Law No. 33 of 2021 on Regulation of Employment Relationship | Federal Law No. 8 of 1980 – UAE Labour Law | The new Law abolished unlimited term contracts and replaced with fixed – term contracts. |
| Federal Law No. 3 of 2022 on Commercial Agencies | Federal Law No. 18 of 1981 – Commercial Agency Law | The New Commercial Agency Law adopts a more balanced approach between principal and agent such as i) the type of companies which can act as a registered commercial agent has been expanded; ii) the reasons for which a principal can terminate a registered commercial agency agreement have been expanded in certain circumstances; and iii) parties can agree to resolve agency disputes through arbitration, an option which was not permissible under the old Commercial Agency Law. |
