The UAE announced the biggest overhaul of its legal system in years on Saturday, affecting everything from divorce and inheritance to the consumption of alcohol.
The laws, effective immediately, reflect progressive measures that aim to attract more foreign direct investment and visitors to the country and to ease rules for residents of the Emirates.
A number of old acts were decriminalised, including the consumption of alcohol without a licence.
But what does it mean for residents and tourists? The National explains.
What has changed?
Alcohol consumption is no longer a criminal offence in the UAE.
This means anyone who drinks or is in possession of alcohol or sells alcoholic beverages in authorised areas without an alcohol licence will not face prosecution.
Previously, a charge for consuming alcohol without a licence could be tacked on if someone was arrested for another offence.
That happened rarely, but will no longer be enforced at all under the new law.
What rules still exist regarding the consumption of alcohol in the UAE?
Alcohol can only be consumed privately or in licensed public places.
A person must be at least 21 to drink legally in the UAE.
Anyone caught selling alcohol to someone deemed underage will be punished, according to the amendments to Federal Law No 3 of 1987 of the Penal Code.
“Penalties are limited to those who serve or sell alcoholic beverages to anyone under the age of 21 or who bought alcohol with the intention to give it to an underage individual," the law says.
The amendments also give each emirate “the right to issue legislation regulating this issue”.
This has always been the case. Sharjah, for example, is completely “dry” while the other emirates take different approaches to regulations regarding the sale of alcohol.
What are the laws in Abu Dhabi?
Restrictions on alcohol have been progressively updated in Abu Dhabi since 2018 when a note was issued to restaurants, bars and retailers in May ending “dry days” in the emirate.
It informed them alcohol would be permitted in licensed areas during "all religious occasions, throughout the year and in upcoming years".
Until then, the sale of alcohol was banned on the day preceding a number of Islamic holidays, including Waqfat Arafa, Al Isra’a and M’raj, the birth of the Prophet Mohammed and Islamic New Year.
In September, the emirate ended the alcohol licence system for residents.
A note sent to distribution companies and retailers said they were not required to ask customers to produce a card that showed they were eligible to buy alcohol.
It said customers must be at least 21 and the purchase should be for personal use, not resale, and that alcohol should be consumed in private homes or licensed areas only.
In recent years, shops, bars and restaurants seldom asked customers to show a licence, but customers were technically required to have one by law.
The decision removed any grey area over the legalities.
What about Dubai?
The new laws are federal and affect all emirates. No further changes were announced to the system in Dubai, other than those made in the summer, that require Dubai residents with alcohol licences to apply for a new card from September.
Several managers at alcohol shops told The National the card system would remain in place until the new law is officially introduced.
In Dubai, shops previously had to ask residents for a licence, or tourists for a temporary licence, before selling alcohol.
Bars and restaurants do not ask to see licences.
The changes were aimed at making it easier for residents to acquire one and to ensure the law was clear.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
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How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
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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
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright
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Background: Chemical Weapons
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
MATCH INFO
Watford 1 (Deulofeu 80' p)
Chelsea 2 (Abraham 5', Pulisic 55')
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
