New Federal Laws Bring Major Changes to UAE Capital Markets.
The UAE has introduced a significant overhaul of its capital markets framework through the issuance of Federal Decree – Law No. 32 of 2025 on the Capital Market Authority and Federal Decree – Law No. 33 of 2025 relating to the Regulation of Capital Markets (together, the “New Capital Markets Laws”).
Key Takeaways:
- The New Capital Markets Laws repeal in their entirety the provisions contained in Federal Law No. 4 of 2000 concerning the Emirates Securities and Commodities Authority and Market.
- The Securities and Commodities Authority (“SCA”) has been reconstituted as the Capital Market Authority (“CMA”) with expanded legal, financial, and administrative powers.
- The CMA is granted enhanced supervisory and enforcement powers, including proactive supervision, early intervention mechanisms, and increased administrative penalties, which may extend up to ten times the profit gained or loss avoided.
- The new law introduces a unified statutory prospectus liability regime applicable to all issuers, whether incorporated onshore or in a financial free zone.
- The laws codify the ability of issuers to delay disclosure of inside information where immediate disclosure would cause serious harm to legitimate interest.
- The new framework will enter into force on 01.01.2026.
The UAE Government issues a Federal Decree Law Promulgating the Civil Transactions Law
The UAE Government has issued a new Federal Decree Law No. 25 of 2025 to restructure and modernise the nation’s Civil Transactions Law, with the aim of establishing a comprehensive and integrated legal framework which will take effect from 01.06.2026.
Key Takeaways:
- A key reform is the reduction of the age of majority from 21 lunar years to 18 Gregorian years, granting individuals aged 18 and above full civil legal capacity to enter contracts, manage assets and assume legal obligations.
- The law introduces clearer provisions governing contracts, including pre-contractual disclosures, sale contracts and protections in cases of latent defects, helping reduce disputes and legal uncertainty.
- The law expands the scope of judicial reasoning and grants broader discretion when referring to the principles of Islamic Sharia in cases where an applicable legislative provision is absent.
- The new provisions are introduced to enhance legal capacity and protect free will in acts and contracts.
- 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.
- The Law also establishes a modern regime for professional companies, regulates ownership, naming, liability. It introduces independent regulation of “mudaraba contracts” outside the scope of company law.
UAE Enacts Child Digital Safety Law.
The UAE introduced a Child Digital Safety Law – Federal Decree Law No. 26 of 2025, effective 01.01.2026, marking a major step in protecting children online.
Key Takeaways:
- The law creates a structured regime aimed at protecting children from digital risks, harmful content, and online exploitation. It applies to digital platforms, ISPs and caregivers with responsibilities outlined for each group.
- Parents and guardians are legally obligated to monitor and manage their children’s online activities, use parental control tools, and prevent exposure to inappropriate digital content.
- The law introduces a graduated penalty system for breaches, with fines starting from modest amounts for minor violations and escalating up to AED 1 million for severe negligence or repeated failures to protect children online.
- Child Digital Safety Council will be established chaired by the Minister of Family as an advisory and coordinating body aimed at achieving integration between federal and local entities and the private sector regarding efforts to ensure children’s digital safety.
- Platforms operating in or targeting users in the UAE must implement age-verification systems, content moderation, privacy protections, and enhanced child safety controls, including reporting mechanisms for harmful content.
UAE Increases Minimum Wage for Emiratis to AED 6000.
The UAE Ministry of Human Resources and Emiratisation (“MoHRE”) has announced a new statutory minimum wage for Emirati nationals employed in the private sector, effective 01.01.2026.
Key Takeaways:
- The minimum monthly salary for Emirati employees in the UAE private sector is set at AED 6,000, up from AED 5,000.
- The requirement applies to all new, renewed, and amended work permits for Emiratis.
- Employers have until 30.06.2026 to adjust the salaries and contracts of Emirati employees hired before 2026 to meet the AED 6,000 threshold.
- From 01.07.2026, non-compliance may result in measures such as excluding underpaid Emiratis from Emiratisation quota calculations and restrictions on issuing new work permits for the establishment until compliance is achieved.
- The Nafis programme and other incentives are available to support compliance and Emirati talent acquisition.
