Ali Galadari, senior judge at the Dubai Court of Cassation, addresses changes to the UAE's drug laws. Satish Kumar for the National
Ali Galadari, senior judge at the Dubai Court of Cassation, addresses changes to the UAE's drug laws. Satish Kumar for the National
Ali Galadari, senior judge at the Dubai Court of Cassation, addresses changes to the UAE's drug laws. Satish Kumar for the National
Ali Galadari, senior judge at the Dubai Court of Cassation, addresses changes to the UAE's drug laws. Satish Kumar for the National

UAE legal reforms: what the new law says about products containing cannabis extracts


Salam Al Amir
  • English
  • Arabic

Changes to the UAE's drug laws will limit criminal action against people found to be carrying products which contain cannabis extracts.

Items with traces of the drug – such as the THC compound – will instead be seized and destroyed, with no punishment for first-time possession.

Those caught with such items again, however, could face prosecution.

Some medical items and foods, such as hemp-based products, can carry extremely low levels of THC, which is the main stimulative compound in cannabis.

New amendments to UAE legislation, to come into force in January, have removed the prospect of many people inadvertently falling foul of the law.

But those in possession of e-cigarettes filled with cannabis extract will continue to face criminal charges.

“Not only legal professionals but doctors, psychiatrists, social experts and others came together to revise the law and produce one that prioritises rehabilitation and the welfare of society,” said Ali Galadari, senior judge at the Dubai Court of Cassation.

Consuming drugs is a crime and the revised law does not change this rule. Therefore, people found in possession of substances such as CBD oil in e-cigarettes will be charged, he said.

“Carrying vape cigarettes that are filled with CBD oil is different from carrying food or drink or medicine that contain THC,' the judge said.

The use of e-cigarettes containing CBD oil remains prohibited in the Emirates. Photo: AFP
The use of e-cigarettes containing CBD oil remains prohibited in the Emirates. Photo: AFP

“Smokers are very aware of what their cigarettes contain, so they should be able to know if it's CBD oil and not think that the revised law will spare them penalty.

“If in doubt about the ingredients of their vaping juice, they should simply buy them from licensed shops.”

What has changed?

Previously, people carrying products that include traces of cannabis would have been detained and referred to prosecutors on charges of drug importation or possessing.

A criminal case would have followed and a conviction meant a prison sentence of up to 10 years and deportation for expatriates.

After major legal changes in November, such items found on people arriving in the country will instead be confiscated and destroyed.

Article 96 states it “shall not be considered punishable by law an action of bringing in, importing, transmitting, or possessing food, drinks or other products which ingredients contain drugging or mind-altering substances mentioned in parts of tables 1, 4, 5 and 6 of this law”.

These listed substances include cannabis, cannabis resin and extracts and tinctures of cannabis, morning glory, tetrahydrocannabinol (THC), Dronabinol, Delta-9-tetrahydrocannabinol and its stereochemical variants.

“This change, among other changes to the country’s drug law, addressed a debate we often had as judges which is whether a drug user is a criminal, or a patient,” Mr Galadari said.

“This has been addressed and the law clearly prioritises rehabilitation and what is best for the defendants themselves and for the country and the society.”

A first-time offence will not be regarded as a crime of possessing drugs for personal use.

However, an official report must document the incident and the substances confiscated must be referred to the relevant authorities to handle the process of destroying them.

“I saw many people get charged with bringing in products that contain THC that are allowed in their countries, but they had no idea it was not allowed in the UAE,” said Ayham Al Moghrabi, a legal consultant.

“However, people carrying products whose ingredients may be questionable need to read the tables attached to the drug law – which are widely available online – because carrying other substances in any form is still punishable.”

Other significant changes to UAE’s anti-narcotics law include cutting minimum jail terms and setting up specialist detention centres as an alternative to prison.

These will provide treatment and rehabilitation programmes, sports and vocational training, as well as family, occupational and social integration initiatives.

“I assume these centres will, very soon – within this year – be ready, especially as the country now has extensive experience in this issue,” Mr Galadari said.

Deportation for foreigners in drug cases is no longer mandatory, with judges able to decide if someone convicted is allowed to stay.

“When it comes to when I may consider deportation, I need look at all details, before I decide,” Mr Galadri said.

“For instance, I need to see whether the defendant is a resident, a visitor, a first timer, or if the person has a criminal record, and other details that will help me decide what is best for the person, his family and the community.”

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Winners

Best Men's Player of the Year: Kylian Mbappe (PSG)

Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)

TikTok Fans’ Player of the Year: Robert Lewandowski

Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)

Best Women's Player of the Year: Alexia Putellas (Barcelona)

Best Men's Club of the Year: Chelsea

Best Women's Club of the Year: Barcelona

Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)

Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)

Best Coach of the Year: Roberto Mancini (Italy)

Best National Team of the Year: Italy 

Best Agent of the Year: Federico Pastorello

Best Sporting Director of the Year: Txiki Begiristain (Manchester City)

Player Career Award: Ronaldinho

MATCH INFO

What: Brazil v South Korea
When: Tonight, 5.30pm
Where: Mohamed bin Zayed Stadium, Abu Dhabi
Tickets: www.ticketmaster.ae

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Avatar: Fire and Ash

Director: James Cameron

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Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Updated: December 29, 2021, 4:08 PM