United Arab Emirates

Revolutionizing Financial Recovery: The Impact of UAE's New Bankruptcy Law

A new law on financial restructuring and bankruptcy is primed to come into effect on 1 May 2024 in the UAE. Federal Law Decree No. (51) of 2023 repeals the previous bankruptcy law of 2016, which was widely seen as complex and rigid in the face of changing global trends and evolving economic factors. The new law aims to provide a more balanced and business-friendly framework for debtors and creditors, and to support the economic stability and far-reaching vision of the UAE.

This overhaul of the bankruptcy regime introduces several significant changes which we touch upon below. Our recently published article on the new law expands upon these changes further.

Preventive Settlement: Debtors will have a more user-friendly and flexible mechanism to negotiate settlement proposals with creditors under court supervision without the appointment of a trustee or the cessation of commercial activities.
Wider scope: Several key definitions, such as "related parties," "debtor's assets," "bankruptcy register," and more have been expanded and clarified. More significantly, the definition of "debtor's assets" is broadened to include all movable and immovable properties owned by the debtor globally. The law also introduces the concept of de facto companies' bankruptcy, treating partners of a de facto company similarly to partners in partnership companies.

Creditor's Rights and Remedies: The law updates the provisions related to set-off, referring to the provisions of Federal Decree Law No. 10 of 2018 on Netting. The law also allows the lifting, establishing, dissolving, selling, or replacing of security if necessary for preventive settlement or restructuring, with the agreement of the secured creditor. The law extends the court's power to declare debtor transactions non-enforceable against creditors to a wider timeframe, focusing on a six-month window preceding the date of cessation of payment. The law also introduces detailed provisions on post-bankruptcy settlements.
Debtor's Rights and Obligations: The law revises the conditions and constraints on debtor's actions during and after bankruptcy proceedings. It is no longer mandatory for debtors to initiate bankruptcy proceedings if the conditions under the law are met. The law extends the moratorium period and excludes certain claims from the moratorium. The law also allows exceptions for critical business operations and personal welfare for debtor's actions post-initiation of bankruptcy proceedings.

These new provisions enhance flexibility, transparency, and efficiency in addressing financial distress and insolvency, thereby improving business operations within the UAE. This development is in line with the UAE's ambition to distinguish itself as a premier business and innovation hub regionally and globally.

Jody Waugh
Managing Partner

Naief Yahia
Partner, Head of Litigation - Dubai

Court Procedures and Enforcement: The law enhances the powers of the Bankruptcy Court by allowing the court to retain experts and auditors, making court decisions immediately enforceable, and creating a specialized division called the Bankruptcy Unit to manage and oversee bankruptcy and restructuring cases. The law also allows secured creditors to enforce against secured assets through the Bankruptcy Court during bankruptcy proceedings.

These new provisions enhance flexibility, transparency, and efficiency in addressing financial distress and insolvency, thereby improving business operations within the UAE. This development is in line with the UAE's ambition to distinguish itself as a premier business and innovation hub regionally and globally. While we note that this change has elicited a mixed reaction within the legal community, this new legislation is certainly more consistent with top international norms and practices, and it ultimately promotes entrepreneurship, resilience, and sustainability, while contributing to economic diversification and growth.

Contact Partners:
Jody Waugh
Naief Yahia

Contributing Author:
Dina Assar

The initiative is driven by a desire to enhance Dubai's business environment, increase its global competitiveness, and align with its ambitious economic goals. Although the Common Law framework for Freezones Law's publication date is not yet determined, expectations are high for the plans to come to fruition during the course of 2024.

Hassan El Tahir
Partner,
Dispute Resolution

Evolving Legal Landscapes: Dubai's Initiative to Adopt DIFC Common Law in Free Zones

Dubai is considering the extension of the Dubai International Financial Centre's (“DIFC”) common law framework to other free zones within the emirate. This strategic move, highlighted in a recent government announcement, includes the launch of a public survey to assess the viability and interest in adopting the DIFC's legal model in selected free zones that currently adhere to UAE federal law.

The initiative is driven by a desire to enhance Dubai's business environment, increase its global competitiveness, and align with its ambitious economic goals. Although the Common Law framework for Freezones Law's publication date is not yet determined, expectations are high for the plans to come to fruition during the course of 2024.

Under the current legal framework in Dubai, unless a free zone company agrees to resolve its dispute through arbitration or through the DIFC Courts, all disputes will have to be referred to the on-shore Dubai Courts. The on-shore Dubai Courts operates under a civil law system and apply UAE laws by default.

The survey conducted by the Dubai Statistics Center reveals two potential methods being considered by the Dubai government for expanding the jurisdiction of the DIFC Courts and the application of DIFC laws across all free zones in Dubai: a hybrid system and a standalone system.

The First Option: Hybrid System

Applicability of UAE Federal Laws: In the free zones, UAE federal laws would predominantly apply, with an exception for contractual matters. Here, parties can opt for an alternative legal system.
Role of DIFC Courts: The DIFC Courts would adjudicate all civil and commercial disputes in the free zones, irrespective of the governing law.
Framework Details: While the DIFC Courts handle dispute resolution, UAE laws form the basis of these cases. DIFC laws, however, will preside over litigation procedures and evidentiary rules.
Jurisdiction and Law Application: The DIFC Courts will have automatic jurisdiction over entities in any Dubai free zone. They will primarily apply UAE law unless parties agree otherwise, making common law the law of the court.

The Second Option: Standalone System:

Complete DIFC Legal Framework: This system would implement the entire DIFC legal framework, including its laws and courts, across all free zones.
Operational Model: Companies in these zones would operate entirely under DIFC laws and regulations, covering various areas such as company law, bankruptcy, and employment, with the DIFC Courts resolving disputes.
Jurisdiction and Law Application: The DIFC Courts would use DIFC Laws by default for dispute resolution, essentially employing a common law approach for both the law of the court (lex fori) and the law of the land (lex loci).

Impact on Stakeholders:
Each option has its distinct advantages and challenges, which vary based on the perspective of the involved stakeholders. However, we can estimate the impact on the stakeholders to be the following:

Hybrid System:

Limited Changes for Businesses: The hybrid system involves minor alterations to the current legal regime, maintaining the primary application of UAE federal laws.
Potential for Increased Litigation Costs: The complexity of applying various laws may lead to higher litigation expenses.

Standalone System:

Advantages for Foreign Investors: It offers a familiar and predictable legal environment, aligning with common law principles and international standards.
Unified Legal Framework: It promises reduced regulatory fragmentation, offering a consistent legal structure.
Challenges in Implementation: Adopting a different legal system from the UAE may present practical and legal complexities, including coordination with UAE federal authorities and courts.

Dubai's recent government survey is a crucial step towards integrating a common law framework in its free zones, a move reflecting the city's dedication to enhancing its position as a global business leader.

By adopting common law in its over 40 free zones, Dubai seeks to offer a more consistent and adaptable legal environment, aligning with global standards and safeguarding individual rights. This strategic move is designed to enhance Dubai's business ecosystem, attract foreign investment, and foster a transparent, efficient legal framework, thereby strengthening its position in the global digital economy.

Contact Partner:
Hassan El Tahir

Contributing Author:
Dina Assar

Navigating the New Terrain: Insights into the UAE’s latest E-Commerce Legislation

The UAE has recently enacted a new e-commerce law that will have significant implications for the online market in the country. The new law aims to provide a comprehensive legal framework for e-commerce activities and enhance consumer protection and trust. It will regulate the relationship between buyers and sellers of goods sold through e-commerce transactions, combat piracy and false sites, protect the interests of the consumer, and protect intellectual property rights and other rights.

The term "E-commerce" is defined broadly to encompass more traditional e-commerce activities such as commercial transactions across websites, platforms and smart applications, as well as other forms of transactions by "Modern Technological Means". This term includes any technology used for e-commerce, be it electronic, digital, biometric, artificial intelligence or blockchain, or within technical environments, whether on electronic websites or smart applications. In this respect, the law is intended to be “technology neutral” and looking forward, future-proofing the UAE’s legal framework for e-commerce transactions.

This law is a significant and welcome development for the UAE and the e-commerce space and reflects the growing importance and potential of the online market in the country. It will support the growth of the online market and enhance the protection and trust of consumers and businesses while fostering innovation and encouraging competition.

Essam Al Tamimi
Chairman

David Yates
Partner, Head of Digital & Data

The aim of the law is to achieve the UAE's strategic direction regarding digital transformation, develop modern technology-based trade, attract investments and skills, and develop the legislative and regulatory environment regarding e-commerce in its broadest sense. The provisions governing contracts in the UAE Civil Code and Commercial Transactions law will still apply to e-Commerce transactions regulated by the new law, as will other laws and regulations dealing with e-signatures, electronic transactions, protection from piracy and data protection. The UAE Consumer Protection Law will also continue to apply to e-commerce operators registered within the UAE. Importantly, the new E-Commerce Law applies to foreign e-commerce operators from whom UAE residents procure goods and services.

Some of the key benefits of the new law for the e-commerce space are:

Consumer rights: The new law also strengthens the rights of consumers in e-commerce transactions. Consumers have the right to cancel or return orders within a specified period, to receive clear and accurate information about the products and services, to file complaints and seek compensation, and to access dispute resolution mechanisms. These rights will empower consumers and encourage them to shop online with confidence and convenience.

Data protection: The new law introduces new obligations and responsibilities for e-commerce providers in relation to data protection. E-commerce providers must ensure the security and confidentiality of personal data, inform consumers of their rights and obligations, and report any cyberattacks or breaches to the competent authorities. These obligations may require stakeholders to upgrade their systems, policies, and procedures to comply with the new law, but they will also enhance the reputation and credibility of e-commerce providers and increase consumer loyalty and satisfaction.
Licensing: The new law requires e-commerce providers to obtain a license from the Ministry of Economy to conduct e-commerce activities in the UAE. The new law does not specify the criteria or procedures for obtaining such a license, nor the penalties for non-compliance, but we expect that this will be clarified in the implementing cabinet resolutions that will take shape in 2024. The licensing requirement will create a level playing field for e-commerce providers and ensure that they meet the standards and regulations of the UAE. It will also create opportunities for foreign companies that operate online platforms or offer online services in the UAE, as they will be able to obtain a license and access the UAE market legally and transparently.

This law poses some challenges for e-commerce providers in relation to dispute resolution as it limits the validity of arbitration agreements in e-commerce transactions over AED 50,000. This means that arbitration may not be an option for resolving disputes arising from high-value online contracts, unless the parties agree to it in writing after the dispute arises. This could be problematic for e-commerce providers who prefer arbitration as a faster and more confidential alternative to litigation, or who wish to avoid a UAE court process. E-commerce providers should therefore review their contractual terms and conditions and consider whether they need to amend them to reflect the new law or to opt for other dispute resolution mechanisms.

This law is a significant and welcome development for the UAE and the e-commerce space and reflects the growing importance and potential of the online market in the country. It will provide a legal framework that will support the growth of the online market and enhance the protection and trust of consumers and businesses while fostering innovation and encouraging competition. E-commerce providers should be aware of the new law and its implications and take proactive steps to ensure their compliance in order to protect their interests and benefit from the opportunities. We will provide further insights as the anticipated implementing cabinet resolutions come into place in 2024.

Contact Partners:
Essam Al Tamimi
David Yates

Contributing Author:
Zane Anani

Navigating the Future: How the UAE's New Maritime Law Transforms Liability Rules and Wreck Management

The UAE has recently enacted a new Maritime Law (Federal Decree No. 43 of 2023), which will come into force on 29th March 2024 and introduce significant changes to the existing legal framework for maritime matters. The new law covers a wide range of topics, but this article will focus on two key areas: limitation of liability and limitation funds, and the law on wrecks and marine debris.

Limitation of Liability and Limitation Funds
The new law broadly mimics the provisions of the LLMC 1976 and 1996 Protocol, to which the UAE is a signatory.In terms of the categories of limitable claims, the claims excepted from limitation, the conduct barring limitation, and the general limits. However, there are some subtle but important differences with the Convention text which require careful attention.

One of the main differences is the provision for the constitution of a limitation fund in the new law. Previously, the UAE had not made provision for the constitution of a fund in accordance with its Convention commitments, and the Federal Transport Authority (now the Ministry of Energy & Infrastructure) had confirmed that it was the competent authority to constitute and manage a fund, although the legal framework was not in place.

The new law affirms a shift of authority to the UAE courts in this regard, and permits the person seeking to limit liability to establish a fund by the provision of a guarantee, having the effect of granting exclusive jurisdiction to the UAE court to adjudicate claims related to limitable debts and barring creditors from taking action against those funds or other assets.

However, the new law also imposes some additional requirements and discretion on the party seeking to constitute a fund and the court. Firstly, the party will have to submit a request to the court, rather than simply deposit cash or provide an acceptable guarantee as under the Convention. Secondly, the court will determine the type of guarantee it will accept, which may vary between courts or judges, but in time we expect that cash or a UAE/first class bank guarantee will become the acceptable practice. P&I Club LOUs may also emerge as an acceptable form of guarantee since the new law now recognises them as good security enabling the release of vessels under arrest.

The new Maritime Law in the UAE introduces significant changes to the existing legal framework for maritime matters, especially in the areas of limitation of liability and limitation funds, and the law on wrecks and marine debris. These changes will have implications for owners, insurers, creditors and other stakeholders involved in maritime disputes and operations in the UAE.

Omar Omar
Partner, Head of
Transport & Insurance

The Law on Wrecks and Marine Debris
The new law also adopts an expanded version of the UAE Cabinet Resolution No 71 of 2021 on Marine Wrecks and Violating Ships, which loosely incorporated aspects of the Nairobi International Convention on the Removal of Wrecks, 2007, but omitted several elements. The new law makes no reference to the procedure or liability for reporting wrecks; determination of hazards; locating or marking wrecks, as the Wreck Convention does. Instead, the new law focuses on the responsibility of the owner to remove the wreck within 60 days, and the powers of the authorities to take measures to remove the wreck and auction it to recover raising, removal and associated expenses.

However, the new law also significantly widens the definition of a "wreck" or "marine debris" to include not only sunken, stranded or adrift objects, but also vessels that harm the interests of the State from security, safety or environmental aspects; that anchor in places other than those designated or without permission; that fail to pay fees and expenses for towing, securing and mooring; that have expired insurance policies against marine damages and liabilities; that are not registered under the flag of a particular State, or that have forged registration documents; or that fall under any other case specified in the Implementing Regulations.

This is an interesting development that is expected to see many more ships that are not conventionally understood to constitute "wrecks" being caught within the definition. Owners will need to be more vigilant in order to avoid the risk of the authorities removing their vessel under these provisions. The new law does not specify whether the owner will receive a written warning before being treated as a wreck, as under the Cabinet Resolution, but we expect that owners will nonetheless be put on notice of falling within these provisions.

Conclusion
The new Maritime Law in the UAE introduces significant changes to the existing legal framework for maritime matters, especially in the areas of limitation of liability and limitation funds, and the law on wrecks and marine debris. These changes will have implications for owners, insurers, creditors and other stakeholders involved in maritime disputes and operations in the UAE. It is important to be aware of the new provisions and their differences with the previous regime and the international conventions, and to seek legal advice on how to protect your interests and rights under the new law.

Contact Partner:
Omar Omar

Contributing Author:
Adam Gray

Transforming Trusts: DIFC's Vision for Global Asset Protection

The proposed revisions to the DIFC's Trust Law underscore its commitment to bolster asset protection and address the complexities arising from the global nature of trust structures. The amendments seek to accommodate trusts holding interests in various jurisdictions, safeguard trusts from creditor claims and foreign judgments, and elucidate legal procedures and provisions for trusts.

A key modification involves allowing trusts to have severable terms governed by separate laws. This flexibility enables trusts to navigate diverse legal requirements across jurisdictions. For instance, a trust could incorporate terms related to jurisdictional requirements imposed by specific laws governing real estate or inheritance, providing greater adaptability and certainty in managing assets across borders.

Another notable change aims to heighten the difficulty for creditors challenging asset transfers to trusts by settlors. Creditors must now demonstrate that the settlor intended fraud and was insolvent during the transfer. The trust would be liable to pay creditors only up to the value of the settlor's interest in the trust property, discouraging baseless claims against trusts and reinforcing asset protection.

Furthermore, the DIFC proposes to elevate standards for recognizing and enforcing foreign judgments against trusts or their beneficiaries. If a foreign court issues a judgment against a trustee or protector, they must step down and be replaced, shielding trust assets from foreign legal actions that may not adhere to DIFC trust law or principles.

The amendments seek to accommodate trusts holding interests in various jurisdictions, safeguard trusts from creditor claims and foreign judgments, and elucidate legal procedures and provisions for trusts.

Richard Catling
Partner.
Corporate Commercial

Additionally, the DIFC proposes new provisions covering topics such as rights of protective and discretionary trusts, court powers to split or merge trusts, settlor-reserved powers, trustee duties regarding protector directions, and acceptance or rejection of trust-related directions by interested parties. These provisions address gaps and ambiguities in the current trust law, providing guidance and options for interested trust parties and the court in handling various trust issues.

Aligning the definition of "Relevant Percentage" in the Trust Law with the UBO Regulations is also proposed, setting the threshold for ownership and control at 25%. This alignment ensures consistency in the DIFC's regulatory framework, facilitating the identification and disclosure of ultimate beneficial owners of trusts and other entities.

Article 33 is to be reassessed in order to clarify that the establishment of a trust does not necessitate a written instrument, thereby affirming that the legal framework allows for resulting and constructive trusts. This stands in contrast to the stance taken by Federal law on trusts, which still does not acknowledge the establishment of trusts through verbal agreements or actions alone.

Additionally, Article 48 has undergone modification to strengthen safeguards for trust beneficiaries. The amendment specifies that a beneficiary's interest can only be terminated if the trust instrument explicitly allows it and the beneficiary challenges the trust or engages in behavior considered detrimental to the settlor or trust’s good administration. It may be that such provisions could be useful in protecting beneficiaries if the trust is challenged on grounds of non-compliance with Sharia Law.

Overall, these proposed changes aim to fortify the legal framework for trusts, enhancing flexibility and responsiveness to the evolving needs of global trust structures. The changes also contribute to the DIFC's reputation and appeal as a leading trust jurisdiction in the region and beyond.

Contact Partner:
Richard Catling

Contributing Author:
Sabeeha Moolla

Advancing Legal Frontiers: The UAE's Strategic Update to its Space Law

The UAE is preparing to launch a new space law in 2024 that will adapt to global technological advancements and position it as a global leader in space exploration and innovation. The new law will update and enhance the existing space law that was introduced in 2019 and came into effect in 2020 (the “current law”). We expect that the new legislation will address both contemporary challenges and future possibilities in space exploration, use, and governance.

The UAE has conducted several successful missions and initiatives to date under the current framework which governs and regulates the ownership of space objects, the sending of astronauts to space, the operation of space tourism flights, and the imposition of fines of up to AED 10 million for offenders. In addition to the current law, the Space Agency also approved five new regulations in early 2023 which cover space debris mitigation, space object registration, space operations, and space risk management. More regulations are expected to be issued in the first quarter of 2024.

The new law, when passed, is anticipated to be a strategic update that will reflect the UAE's vision and commitment to advancing the frontier of the space sector and achieving excellence and leadership in this field.

Hassan El Tahir
Partner,
Dispute Resolution

Andrew Fawcett
Partner,
Digital & Data

As we understand it, the new space law will aim to achieve the following overarching objectives:

Streamline licensing and inspections: Aiming to make licensing and inspection processes more efficient and less cumbersome. This will encourage further participation and investment in the UAE's space industry, which has already received substantial investments exceeding AED 20 billion in the sector according to the UAE Telecommunications and Digital Government Regulatory Authority.
Wider coverage: Broaden the scope of the space law to cover cross-cutting sectors that support the space sector, such as telecommunications, insurance, and education. This will create a more holistic and supportive environment for space-related activities and acknowledge the interconnected nature of the space sector and the need for a diverse range of services and expertise.
Alignment with international best practices: Keep pace with the fast-changing technology trends and align with the international best practices and standards in the space sector. This will ensure that the UAE's space sector is dynamic and adaptable to the evolving needs and challenges of the sector and consistent with the UAE's 2030 Space Strategy, which aims to enhance the space sector's contribution to the national economy and promote the UAE's regional and international presence in the space sector.

The primary benefit of all space legislation, besides providing for a legal framework for governing the activities of nations, organizations, and individuals in outer space, is to pave the way for more ambitious and innovative projects in the future, such as space tourism, lunar exploration, and asteroid mining. It will also foster closer collaboration and cooperation with other countries and organizations in the space sector, further establishing the nation’s presence in the global space community and affirming its commitment to the advancement of humanity and science.

The new law, when passed, is anticipated to be a strategic update that will reflect the UAE's vision and commitment to advancing the frontier of the space sector and achieving excellence and leadership in this field. It will build on the UAE's impressive achievements in the space sector, such as launching several successful missions and initiatives, sending the first Emirati astronaut to space, and operating the first Arab interplanetary mission to Mars.

Contact Partners:
Hassan El Tahir
Andrew Fawcett

Contributing Author:
Dina Assar

A New Era in Genetic Governance:
The UAE’s New Genome Law

The United Arab Emirates (UAE) has recently issued a new law to regulate the use of the human genome, which is the complete genetic material of a living organism. The law aims to ensure the safe and ethical use of the human genome for various purposes, such as health, research, and legal matters, while protecting the rights and dignity of individuals and the public interest. The law also establishes a national genomic database and programme to utilise the genomic data of UAE citizens and develop the Emirati genome reference.

It introduces several significant changes, such as:

Requiring consent or the consent of the legal representative for genomic screening or genetic screening on any person.
Setting out the controls for taking, analysing, using, preserving and transporting the biological sample for genomic or genetic analysis or DNA profiling.
Permitting genomic or genetic screening for pre-symptomatic prevention, diagnosis and treatment of diseases and health conditions within the public health framework.

Granting every person the right to withdraw from a voluntary genomic or genetic screening or scanning at any stage without providing justification for doing so, and the right to the results of their own analyses.
Allowing genetic screening at centres for medical support in reproduction, and of pregnant women, for identifying and preventing hereditary diseases and deformities.
Imposing obligatory genomic screening of umbilical cord blood, new-borns, and couples, for detecting hereditary traits and diseases, diagnosing injuries and diseases in new-borns, and planning a healthy family.
Prohibiting employers from subjecting job candidates or workers to any genomic screening or genetic screening outside of the framework of a voluntary health programme.
Prohibiting insurance corporations from enforcing those seeking insurance coverage to any genomic screening or genetic screening, and from requesting or using the results of any previous genetic screening or genomic screening.

The UAE Human Genome law is a comprehensive and advanced legislation that regulates the use of the human genome in the UAE, and reflects the UAE vision and leadership in promoting the development and innovation of the health sector, as well as the protection and enhancement of the rights and interests of the individuals and the society. The law also contributes to the achievement of the UAE national agenda and the UAE Centennial 2071, which aim to make the UAE the best country in the world in various fields, including health, education, and economy.

Andrea Tithecott
Partner, Head of Regulatory and Healthcare

Prohibiting genomic screening or genetic screening to be requested to detect symptoms or diagnose a specific disease for estimating damage and calculating and claiming compensation for it, except by a judicial order or ruling, and prohibiting DNA profiling to be performed to prove lineage and kinship, except based on an order or ruling from the competent court.

Establishing a national database in which genomic and genetic data and information shall be stored in the UAE.
Establishing a genome programme that aims to use the genomic data of UAE citizens, analyse it and benefit from it to improve the public health of Emiratis, and a genome reference, which is the digital DNA sequence.
Requiring that no facility may provide services related to human genomes and genes, except with a licence from the competent authorities, and that the facility may not advertise its services, except with a licence from the competent authorities.

While genomic technology holds immense potential for advancing human health, knowledge, and living standards, effective governance and legal frameworks are essential to ensure that the benefits of genomic technology are realized while minimizing its risks. The new law is a comprehensive and advanced legislation that reflects the UAE vision, and as the implementing resolutions come into place in 2024, we expect further innovation of the health sector as well as heightened protection of the rights of individuals in the UAE.

Contact Partner & Author:
Andrea Tithecott

Future-Proofing Legislation in the UAE

As the UAE continues on a path of economic expansion, it is crucial to have in place a robust regulatory and legal regime that aligns with emerging technologies. The UAE Federal Government is acutely aware of this and has enacted a range of new laws which are “technology neutral” and, as such, are future proofed.

The New Media Law: This law came into effect on 1 December 2023 and repeals Federal Law No. 15 of 1980. We anticipate the accompanying executive regulations to be issued mid-2024. The new Law introduces a host of changes by aligning with modern media forms such as social media. One of the key features of the Law is the prohibition of false news, as well as spreading rumours or misleading news. The Law also stipulates that the party responsible for electronic and digital media activity will be responsible for what is published through the activity, whether it is permitted or not. This law will be able to adaptable to new or evolved digital and electronic media through future executive regulations, and it places strict responsibility for content on creators.
The New E-Commerce Law: The new e-commerce law came into effect on the 16 September 2023. The law will have significant implications for the online market in the UAE. Its aim is to provide a comprehensive legal framework for e-commerce activities and enhance consumer protection and trust. It will regulate the relationship between buyers and sellers of goods sold through e-commerce transactions, combat piracy and false sites, protect the interests of the consumer, and protect intellectual property rights and other rights.

As the UAE continues on a path of economic expansion, it is crucial to have in place a robust regulatory and legal regime that aligns with emerging technologies. The UAE Federal Government is acutely aware of this and has enacted a range of new laws which are “technology neutral” and, as such, are future proofed.

David Yates
Partner, Head of Digital & Data

United Arab Emirates' accession to the Digital Economy Partnership Agreement: This agreement was ratified in 2023. The ratification reaffirms the UAE’s commitment to transform the UAE into a leading digital economy and that ongoing economic success depends on the ability to harness technological advances to improve existing businesses, create new products, markets and enhance daily life.
New Mental Health Law: The new Mental Health Law, which comes into force on 27 May 2024, also considers the protection of patients’ data. The Law prevents the disclosure of information or data to any other party other than health authorities, judicial authorities, and security agencies. This highlights the increased importance provided to data protection within the Emirates, with the limited exemptions indicating the high importance of healthcare data.

General Guidelines on Photography: The Abu Dhabi Judicial Authority issued guidelines in December 2023, with reference to photography in public places. The guidelines highlight the issue of photography in relation to privacy, and how consent is required. The guidelines are a useful reminder in ensuring compliance with the UAE’s privacy law, especially in the context of uploading photographs to social media.

Contact Partner:
David Yates

Contributing Authors:
Zane Anani
Sabeeha Moolla
Hassan Malik