Strengthened Narcotics Law: Enforcement, Treatment and Penalties
The UAE has amended the Federal Decree-Law on Combating Narcotic Drugs and Psychotropic Substances, introducing both tougher enforcement measures and expanded rehabilitation capacity.
Key reforms include:
- Appointment of the Emirates Drug Establishment as the competent authority for regulating medical narcotics
- Replacement of the Ministry of Interior with the National Anti-Narcotics Authority for enforcement oversight
- Expansion of rehabilitation services, allowing federal and private healthcare facilities to establish specialised treatment units, subject to Cabinet regulation
- Significantly increased penalties for unauthorised prescribing or dispensing of narcotic substances:Minimum five years’ imprisonment
- Fines of not less than AED 50,000
- Mandatory deportation of foreign nationals convicted of narcotics offences following completion of sentence, subject to limited family-based exceptions
- These reforms reflect a dual approach of deterrence and treatment, strengthening both enforcement and public health outcomes.
Child Welfare Law Expanded: Custody and Safeguards
Under Federal Decree-Law No. (12) of 2025, the UAE amended provisions governing children of unknown parentage, reinforcing child protection mechanisms.
Notable changes:
- Reaffirmation of the best interests of the child as the guiding legal principle
- Expansion of custody eligibility to: Qualified families residing in the UAE (via joint applications)
- Eligible women aged 30 or above, financially capable of supporting a child
- Introduction of monitoring systems, corrective plans, and removal mechanisms where custody conditions are breached
- The amendments reflect a more inclusive, structured, and safeguarded approach to child welfare.
Tougher Penalties for Sexual Offences and Exploitation of Minors
Amendments to the Crimes and Penalties Law significantly strengthen protections for minors and expand judicial precautionary powers.
Key provisions:
- Any individual aged 18 or above engaging in sexual activity with a minor faces: Minimum 10 years’ imprisonment
- Fines of not less than AED 100,000
- Consent is not legally recognised unless the victim has completed 16 years of age
- Courts may impose post-sentence precautionary measures, including medical, psychological, and social assessments
- Increased penalties for incitement, solicitation, or facilitation of prostitution, particularly where minors are involved
- These reforms align UAE criminal law with stringent international child-protection standards.
Civil Justice Reform: Introduction of Inheritance Courts
Amendments to the Civil Procedures Code introduce specialised inheritance courts, enhancing judicial efficiency and clarity in succession matters.
Highlights:
- Inheritance courts may be established directly by: The President of the Federal Judiciary Council, or
The head of a local judicial authority - Expanded appeal rights and stricter evidentiary standards
- Extension of Court of Cassation appeal rights to decisions issued by Courts of Appeal
- Empowerment of the Attorney-General to file appeals independently
These changes are particularly relevant for high-value estates, cross-border families, and succession planning.
Organ Transplant Law Expanded to Non-Human Organs
The UAE amended its organ transplantation law to regulate the use of non-human organs and tissues, including animal-derived and manufactured organs.
Key safeguards include:
- Strict medical, ethical, and technical approval requirements
- Mandatory licensing and committee oversight
- Creation of a national transplant database
- Heavy penalties for violations:Fines ranging from AED 100,000 to AED 2 million
- Potential imprisonment
- Cabinet authority to regulate domestic and cross-border transfers
- The reforms support medical innovation while ensuring rigorous ethical oversight.
Introduction of Tiered Sugar Tax (Effective 1 January 2026)
The Ministry of Finance issued Cabinet Decision No. 197 of 2025, introducing a tiered volumetric tax on sweetened beverages.
Tax structure:
- 5–8g sugar per 100ml: AED 0.79 per litre
- 8g+ sugar per 100ml: AED 1.09 per litre
- Drinks with less than 5g sugar per 100ml or artificial sweeteners only are exempt
The measure supports public health objectives and will impact manufacturers, importers, distributors, and retailers.
New Veterinary Law Enhances Food Safety and Animal Health
A new Federal Decree-Law on veterinary medical products establishes a unified regulatory framework covering:
- Development and manufacturing
- Licensing, import and export
- Prescribing, storage, and disposal
- Prohibition of counterfeit and expired products
- Regulation of restricted veterinary substances
- Fast-track approvals for innovative treatments
- Affected entities are granted up to one year to regularise compliance, subject to Cabinet extensions.
Reform of the Emirates Union of Chambers of Commerce and Industry
Amendments to Federal Law No. (22) of 2000 restructure the Emirates Union of Chambers of Commerce and Industry.
Structural changes include:
- Abolition of the General Assembly
- Designation of the Board of Directors as the supreme authority
- Expansion of board strategic and operational powers
- Formal definition of the Chairman’s responsibilities
- The reforms aim to improve institutional efficiency and private-sector representation.
Major Amendments to the Commercial Companies Law
The UAE introduced significant reforms to the Commercial Companies Law, enhancing flexibility and investor protection.
Key developments:
- Introduction of multi-class share structures
- Formal recognition of non-profit companies
- Ability for private joint-stock companies to raise capital via private subscriptions
- Statutory recognition of tag-along and drag-along rights
- Stricter valuation rules for non-cash capital contributions
- Streamlined company relocation across emirates and free zones
These changes materially enhance the UAE’s appeal for venture capital, private equity, and family offices.
VAT Law Amendments Effective 1 January 2026
Under Federal Decree-Law No. (16) of 2025, the UAE has introduced important VAT reforms.
Key changes:
- Removal of the self-invoicing requirement under the reverse-charge mechanism
- Introduction of a five-year time limit to reclaim excess refundable VAT
- Enhanced powers for the Federal Tax Authority to deny input VAT deductions linked to tax evasion or abusive arrangements
- The reforms are designed to improve administrative efficiency, compliance, and enforcement.
Knightsbridge Group Advisory
These legislative reforms represent one of the most comprehensive federal law updates in recent years, with direct implications for:
- Corporate structuring and governance
- Tax planning and compliance
- Healthcare, pharmaceuticals, and food safety
- Family law, inheritance, and succession planning
- Criminal liability and regulatory enforcement
Knightsbridge Group continues to advise clients on navigating regulatory change in the UAE, ensuring compliance while leveraging new legal frameworks to support business growth, asset protection, and long-term planning.
Clients are encouraged to seek tailored advice to assess how these changes impact their operations, investments, or personal circumstances.
This article is provided for general information purposes only and does not constitute legal or tax advice. Laws and regulations are subject to further executive regulation and interpretation.
