• Abu Dhabi’s civil family court system, which allows non-Muslim couples to divorce and marry in a non-Sharia legal process, will be replicated across the country from February 1. Khushnum Bhandari / The National
    Abu Dhabi’s civil family court system, which allows non-Muslim couples to divorce and marry in a non-Sharia legal process, will be replicated across the country from February 1. Khushnum Bhandari / The National
  • From January 1 all public and private sector employees must subscribe to the country’s social security programme.Jeff Topping/The National
    From January 1 all public and private sector employees must subscribe to the country’s social security programme.Jeff Topping/The National
  • From January 1, 2023, private companies with more than 50 employees must ensure that 2 per cent of staff members are Emirati. Paulo Vecina/The National
    From January 1, 2023, private companies with more than 50 employees must ensure that 2 per cent of staff members are Emirati. Paulo Vecina/The National
  • Companies will have to pay a 9 per cent corporate tax on earnings above Dh375,000, according to a new policy being introduced in 2023. Silvia Razgova / The National
    Companies will have to pay a 9 per cent corporate tax on earnings above Dh375,000, according to a new policy being introduced in 2023. Silvia Razgova / The National

How UAE life will change in 2023 as new laws come into force


Patrick Ryan
  • English
  • Arabic

The UAE is ready to ring in the changes in 2023 with new laws coming into force to further modernise the legal system, strengthen workers' rights and increase Emirati participation in the private sector.

Many aspects of daily life will be affected by the policies, from rules governing marriage, divorce, inheritance and child custody for non-Muslims, to the make-up of the average office.

The National takes a look at the measures being introduced and how they will affect people in all walks of life in the new year.

Major shake-up of family law

  • Officials open the Family Court at Abu Dhabi Judicial Department in 2021. Photo: ADJD
    Officials open the Family Court at Abu Dhabi Judicial Department in 2021. Photo: ADJD
  • British couple Craig Lindsay and Sarah Goodman marry in a civil ceremony in February 2022. Victor Besa / The National
    British couple Craig Lindsay and Sarah Goodman marry in a civil ceremony in February 2022. Victor Besa / The National
  • Itamar Bareket, from Tel Aviv, places the ring on to his wife-to-be Nogah's finger at the civil court in Abu Dhabi. Khushnum Bhandari / The National
    Itamar Bareket, from Tel Aviv, places the ring on to his wife-to-be Nogah's finger at the civil court in Abu Dhabi. Khushnum Bhandari / The National
  • The couple chose Abu Dhabi because civil marriages are not allowed in Israel. Khushnum Bhandari / The National
    The couple chose Abu Dhabi because civil marriages are not allowed in Israel. Khushnum Bhandari / The National
  • The court also handles divorces and other family matters such as inheritance. Victor Besa / The National
    The court also handles divorces and other family matters such as inheritance. Victor Besa / The National
  • The process involves paperwork and a ceremony with an official. Victor Besa / The National
    The process involves paperwork and a ceremony with an official. Victor Besa / The National
  • At least dozens of couples have been married at Abu Dhabi Judicial Department and many more plan to do so. Victor Besa / The National
    At least dozens of couples have been married at Abu Dhabi Judicial Department and many more plan to do so. Victor Besa / The National

Abu Dhabi’s civil family court system, which allows non-Muslim couples to divorce and marry in a non-Sharia legal process, will be replicated across the country from February 1.

The federal law for non-Muslim expatriates, announced earlier this month, covers key family matters such as marriage, divorce, inheritance and child custody.

It sets out to grant equal rights to men and women in such matters.

Previously, a couple seeking a divorce in a local court would follow a Sharia-based process. This differs significantly from what they may be used to in their home country. Many instead choose to marry, divorce or arrange a will abroad.

Non-Muslim couples can now marry “based on the will of both the husband and wife”, meaning consent from the wife’s father or guardian is no longer mandated.

The requirement to have several male Muslims as witnesses has also been removed.

Couples will also be able to request a divorce without having to prove one party was at fault.

Divorces can be approved on the first hearing without having to attend family counselling sessions or mandatory mediation.

Alimony and other financial requests can be applied for via a “post-divorce request form”.

Procedures will be put in place to resolve issues of child custody after a divorce.

Previously, it was the case that a father could immediately claim custody of his son at the age of 11 and his daughter when she turned 13.

It will now be the case that the court determines who takes custody, with the best interests of the child being the deciding factor.

The new laws include the right to leave property in your will to the person of your choice.

In the absence of a will, half of a person’s estate will be left to their spouse, with the remainder divided up between their children.

Proof of paternity for non-Muslims will be based on marriage or the recognition of paternity, with DNA tests being conducted if paternity is unknown.

Safety net for workers

From January 1 all public and private sector employees must subscribe to the country’s social security programme.

The scheme will act as insurance in case of a loss of employment and is divided into two categories ― those earning monthly salaries of up to Dh16,000 and those earning more than that figure.

The cost for employees in the first category will be Dh5 per month, or Dh60 a year, while workers earning the higher salary will have to pay Dh10 per month, or Dh120 a year.

Employees are eligible for compensation for losing their job on the condition they have worked and subscribed for at least 12 months to the insurance programme.

They will be ineligible for the insurance, however, if they have been dismissed for disciplinary reasons or resigned from their post.

Starting a new job, or leaving the country, will also render the employee ineligible for an insurance pay-out.

Employees will be entitled to three months' compensation, which will not exceed 60 per cent of the monthly salary, the Ministry of Human Resources and Emiratisation said earlier this year.

The maximum amount that will be paid out is Dh10,000 for those earning less than Dh16,000 a month, with a ceiling of Dh20,000 for those in the higher bracket.

Emiratisation drive gathers pace

  • Abdulla Galadari, an Emirati lawyer and senior partner at Galadari Advocates & Legal Consultants in Dubai. Ruel Pableo for The National
    Abdulla Galadari, an Emirati lawyer and senior partner at Galadari Advocates & Legal Consultants in Dubai. Ruel Pableo for The National
  • Abir Araki, Emiratisation and nationalisation manager at Cigna Insurance Middle East in Dubai. Pawan Singh / The National
    Abir Araki, Emiratisation and nationalisation manager at Cigna Insurance Middle East in Dubai. Pawan Singh / The National
  • UAE National Career Fair, World Trade Centre, Downtown, Dubai. Chris Whiteoak / The National
    UAE National Career Fair, World Trade Centre, Downtown, Dubai. Chris Whiteoak / The National
  • Young men at the Dubai Islamic Bank stand during the National Career Exhibition in Sharjah. Satish Kumar / The National
    Young men at the Dubai Islamic Bank stand during the National Career Exhibition in Sharjah. Satish Kumar / The National
  • Emiratis at the Armed Services stand at a job fair at Adnec. Silvia Razgova / The National
    Emiratis at the Armed Services stand at a job fair at Adnec. Silvia Razgova / The National
  • Emirati job seekers and students at the RAK Career Fair in Ras Al Khaimah. Satish Kumar / The National
    Emirati job seekers and students at the RAK Career Fair in Ras Al Khaimah. Satish Kumar / The National
  • Young Emiratis at a jobs fair in Fujairah trying to get a foot on the career ladder. Satish Kumar / The National
    Young Emiratis at a jobs fair in Fujairah trying to get a foot on the career ladder. Satish Kumar / The National

From January 1, 2023, private companies with more than 50 employees must ensure that 2 per cent of staff members are Emirati.

Employers that fail to reach the 2 per cent target by the end of the year will have to pay a Dh72,000 fine ($19,602) in January for each Emirati worker they fail to hire, the equivalent to Dh6,000 for each month of this year.

The new law does not apply to companies registered in free zones, although they are being encouraged to hire Emiratis.

The policy is being introduced by the government to ensure 10 per cent of the private sector workforce is Emirati by 2026.

The UAE is keen for citizens to play a greater role in the progress of the private sector, which is a key driver of economic growth.

Corporate tax

Companies will have to pay a 9 per cent corporate tax on earnings above Dh375,000, according to a new policy being introduced in 2023.

The new tax will be effective for the financial year starting on June 1.

Profits below Dh375,000 will not be taxed. Companies will have nine months from the end of each financial year to pay their corporate tax bill.

Salaries and other forms of personal income are exempt from the new tax.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: September 12, 2023, 8:17 AM