Overview of the United Arab Emirates Legal System

Dr. Khedr is a faculty member and Adviser of Corporate Affairs. He holds an LLB, BA in Police Science, LLM in International Commerce, and PhD Highest Class with honor in Commercial Law major in Corporate Law and Corporate Governance from Ain Shams University. He holds Professional Education in Business Management, Corporate Restructuring, Mergers & and Acquisitions from Harvard University and, a professional (TOT) in Corporate Governance from (IFC) World Bank Group. In addition, he has many professional Courses and certifications relevant to Mediation, Compliance, AML/CFT, Development & Management, Computer and Information Security, and Management of safety. Dr. Khedr has more than 15 years of experience as a practitioner, Lecturer, and Adviser of Law and Corporate Affairs. His fields of interest are Commercial & Corporate Laws, Int’l Commerce Law, Corporate Governance & Compliance Systems, M&A, Financial Crimes, Consumer Law, AML, Mediation, Commercial Contracts, Investor Relations, Regulations, Family Business Charter, Stock Market Corporate codes, Code of Conduct and CSR. He has published research and books on these topics in periodicals and scientific journals. He has provided consulting in Corporate Affairs to many firms, and several multinational and local companies in MENA and USA. Ahmed has experience in the MENA especially Egypt and the Gulf countries. The ABCCG (Abu Dhabi Chamber of Commerce & Industry) chose him to design the first “Corporate Governance Program for Lawyers & Corporate Advisory” in the UAE and the Arab Region.

Dr Khedr is the founding member and former program director of the Faculty of Law, Taibah University, the first law school in Saudi Arabia, and the former founding director of the Legal Training Center at the British University in Egypt in Egypt (BUE). Ahmed is a member of the T20 (Association of Egyptian Alumni of Global Business Schools) supporting the Egyptian government in assessing projects existing and providing recommendations in investment and company Laws to the Prime Minister and Minister of Planning. He is a founding partner of KLCCA, one of the leading and fastest-growing MENA firms in Corporate Affairs, in addition, he is an Independent Board Member for many companies and non-profit institutions. Dr. Khedr is a member of ECGI, UIA, ALU, ESIL, ESPESL, SLS, IACL, HUMA, and HAAA.

1. Introduction

The United Arab Emirates is a united, independent state. Article one of the Constitution provides that the Union consists of the following Emirates Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, and Fujairah, and it is allowed for any independent Arab country to join the Union, once approved by the Supreme Council of the Federation at a unanimous consensus (Ras Al Khaimah joined the Federation of the United Arab Emirates on February 10, 1972).

Accordingly, the constitution was written, and the UAE Federal Constitution was approved in principle, which gave legitimacy to the establishment of the union. Then countries began to recognize the new state, and to establish its international presence, the United Arab Emirates began the steps of joining under the flag of the new state in international and regional organizations.

On December 3, 1971, the United Arab Emirates was established, and federal decisions and decrees were issued declaring the establishment of the state. In the same month of the same year, the Arab League Council approved in a closed meeting the UAE’s accession to membership in the Arab League, thus becoming the eighteenth member of the League.

It is worth noting that since the founding of the United Arab Emirates countries, they have been characterized by moderation and balance, the foundations of dialogue and understanding between brothers and friendly countries, respect for international charters and the United Nations Charter, respect for the rules of good neighborliness, the sovereignty of states and the unity of their territories, non-interference in internal affairs, and resolving disputes by peaceful means. The state plays a major role in global campaigns to combat human trafficking and terrorism, as well as to maintain respect for human rights (for more, see the UAE Government portal).

1.1. Location and Population

The United Arab Emirates is located in the southeast region of the Arabian Peninsula, as it extends from the Oman Gulf eastward to Qatar westward, bordered by the Arabian Gulf from the north and the northwest, Qatar and Saudi Arabia from the west and Oman Gulf as well as Sultanate of Oman from the east. United Arab Emirates shores towering over the southern coast of the Arabian Gulf extend to cover an area of 644 kilometers from the base of Qatar Peninsula westward to Ras Masandam eastward, having the emirates of Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman and Um Al Quwain diffused over the coast, whereas the coast of the seventh emirate Al Fujairah stretches for 90 kilometers over the coast of Oman Gulf. Therefore, the state occupies the located area between the latitudes 22 and 26.5 degrees northward, and the longitudes 51- and 56.5 degrees eastward Grenache.

The United Arab Emirates area excluding the affiliated isles amounts to 83.600 square kilometers. The Emirate of Abu Dhabi represents the greatest share since it covers an area of 67.340 square kilometers equivalent to 87% of the total area of the State.

The federal authorities of the State consist of the Supreme Council of the Federation, the Chairman of the Federation and his Deputy, the Cabinet, the Federal National Council, and the Federal Judiciary Body. The Union represents a part of the great homeland bonded by the ties of religion, language, history, and mutual destiny, as its people constitute an integral part of the nation.

The population of the United Arab Emirates amounts to more than 8 million (estimations of 2010) and is continuing to grow at a rapid rate despite the global downturn. The major towns are Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman, Um Al Quwain, and Al Fujairah. The capital is Abu Dhabi, and most of the population lives in Dubai and Abu Dhabi.

It has been shown that, during the ten years from 2010 to 2019, the number increased from 8.264 million people in 2010 up to 8.394 million people in 2011, before jumping to 8.526 million people in 2012 and to about 8.661 million in 2013, and during 2014, the population increased to about 8.798 million people, then it reached 8.938 million in 2015, before rising again to 9.121 million in 2016, then it reached about 9.304 million in 2017, after that, it reached 9.366 million in 2018. In 2019, the population increased by 1.5%, bringing the total to 9.5 million people compared to 2018, and after the COVID-19 pandemic, the population decreased to range from 9.326 in 2020 to 9.402 in 2021, then the population began to rise again in 2022 to reach 9.478 until it reached 9.554 in 2023 (FCSC).

1.2. UAE Religion and Language

Islam is the official religion of the United Arab Emirates. The Arabic Language is considered the official language in the United Arab Emirates whereas English Language is widely used as far as the commercial and economic domains are concerned.

In addition, the diversity of races within the United Arab Emirates has led to the widespread distribution of more than five languages: German, Chinese, French, Hindi, and Russian, as foreign languages have become increasingly common in recent years. (AHELOFS Report, “OECD”).

1.3. History of the United Arab Emirates

The life of the ruling H.H. Sheikh Zayed bin Al Nahyan (The founder of the Union) was quite important in the history of the United Arab Emirates and the Arab states. In the UAE region on December 2nd, 1971, the United Arab Emirates was declared as a united, independent, and sovereign state encompassing seven emirates.

Up through the end of the Second World War, pearling was a major trade, but after the war, and after the Japanese began creating cultured pearls, the pearling industry withered away. It was not too many years, however, before oil became the UAE’s biggest and most important export.

Before the export of oil in the regions that became the UAE, economic adventures included fishing, agriculture, pearl production, and herding. After oil prices rose significantly in 1973, however, the export of oil has been the dominant money maker for such states, accounting for most of its export earnings. The UAE has very large oil reserves, estimated at nearly 100 billion barrels in 2003, and gas reserves estimated to fill 212 trillion cubic feet. At maintained drilling levels, these resources could last for over 150 years.

United Arab Emirates Timeline:

• 1820: Britain and local rulers signed a treaty to combat piracy along the Gulf coast. From this and later agreements, the area becomes known as the Trucial Coast.
• 1892: The deal between the Trucial States and Britain gives Britain control over foreign affairs and each emirate control over internal affairs.
• 1950: Oil is discovered.
• 1952: The seven emirates form a Trucial Council.
• 1962: Oil is exported for the first time from Abu Dhabi.
• 1966 August: Sheikh Zayed Bin-Sultan Al Nuhayyan takes over as Ruler of Abu Dhabi.
• 1968: As independence looms, Bahrain and Qatar join the Trucial States. Differences caused the union to crumble in 1971.
• 1971 November: Iran occupies the islands of Greater and Lesser Tunb and Abu Musa.
• 1971, December 2: Federation is formed
• 1971 December: After independence from Britain, Abu Dhabi, Ajman, Dubai, Fujayrah, Sharjah, and Umm al-Qaywayn come together as the United Arab Emirates (UAE). Sheikh Zayed Bin-Sultan Al Nuhayyan presides over the federation.
• 1971: UAE joins the Arab League.
• 1972: Ras al-Khaymah joins the federation.
• 1972 February: Federal National Council (FNC) is created; it is a 40-member consultative body appointed by the seven rulers.
• 1981 May: UAE is a founding member of the Gulf Cooperation Council; its first summit is held in Abu Dhabi.
• 1990 October: Sheikh Rashid Bin-Said Al Maktoum dies and is succeeded by his son Sheikh Maktum Bin-Rashid Al Maktum as ruler of Dubai and UAE vice-president.
• 1991: UAE forces join the allies against Iraq after the invasion of Kuwait.
• 1991 July: Bank of Credit and Commerce International (BCCI) collapses. Abu Dhabi’s ruling family owns a 77.4% share.
• 1992: Iran angers the UAE by saying visitors to Abu Musa and Greater and Lesser Tunb must have Iranian visas.
• 1993 December: Abu Dhabi sues BCCI’s executives for damages.
• 1994 June: 11 of the 12 former BCCI executives accused of fraud are given jail sentences and ordered to pay compensation.
• Islands continue to be disputed.
• 1996: Iran fuels the dispute over Abu Musa and Greater and Lesser Tunb by building an airport on Abu Musa and a power station on Greater Tunb.
• 1998: UAE restores diplomatic relations with Iraq; they were severed at the outbreak of the 1991 Gulf War.
• 1999 November: Gulf Cooperation Council backs the UAE in its dispute with Iran over Greater and Lesser Tunb and Abu Musa.
• 2004: Sheikha Lubna Al Qasimi appointed first woman minister.
• 2004 November: UAE President Sheikh Zayed Bin-Sultan Al Nahyan dies and is succeeded by his son, H.H. Sheikh Khalifa Bin Zayed Al Nahyan
• 2005: General Sheikh Mohammad Bin Zayed Al Nahyan is appointed Deputy Supreme Commander of the UAE Armed Forces.
• 2006 January: Sheikh Maktoum bin Rashid al-Maktoum, UAE PM and vice-president and ruler of Dubai, dies during a visit to Australia. He is succeeded by his brother; Sheikh Mohammed bin Rashid al-Maktoum.
• 2006 March-June: Economic changes announced. They include bringing the days of the official weekend into line with Western nations, introducing laws to reduce the dependence on foreign workers, and allowing laborers to form trade unions.
• 2006 16 December: First-ever national elections. A small number of hand-picked voters choose half of the members of the Federal National Council – an advisory body.
• 2007 April: UAE unveils a national development strategy aimed at making it a world leader.
• 2007 September: Dubai and Qatar become the two biggest shareholders of the London Stock Exchange, the world’s third-largest stock exchange.
• 2008 July: The UAE cancels the entire debt owed to it by Iraq – a sum of almost $7bn.
• Boom grinds to a halt.
• 2009 February: Dubai sold $10bn in bonds to the UAE to ease liquidity problems.
• 2010 January: Burj Khalifa Tower opens in Dubai as the world’s tallest building and man-made structure.
• 2012 April: The UAE recalls its ambassador to Iran after the Iranian president visited a Gulf Island, Abu Musa, claimed by both countries.
• 2012 July: The UAE begins operating a key overland oil pipeline that bypasses the Strait of Hormuz. Iran has repeatedly threatened to close the strait at the mouth of the Gulf, a vital oil trade route.
• 2013: The year 2013 witnessed several important events and achievements in the UAE at the local and global levels. It obtained membership in the Board of Governors of the International Atomic Energy Agency for the period 2013–2015.
• 2013: On the external level, the UAE provided aid worth millions of dollars to countries that suffered from natural disasters such as earthquakes, floods, torrents, hurricanes, and severe weather conditions.
• 2013: Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, issued several decrees granting thousands of citizens residential lands, villas, and various other financial and in-kind initiatives throughout the year. He decided to allocate an additional 20 billion dirhams to be spent on various initiatives of the President of the State. Sheikh Khalifa also ordered the release of 973 prisoners and the payment of their financial obligations upon the arrival of the last month of Ramadan.
• 2013: For his part, Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister, and Ruler of Dubai, donated clothing for 3 million children around the world in the “Million Clothes” campaign.

2013: In the field of energy, Sheikh Khalifa, President of the UAE, inaugurated a project called Shams1, which concentrated solar energy in the western region of the Emirate of Abu Dhabi. This is part of the UAE’s vision to diversify its economy and energy resources in the long term. The “Shams 1” station is the largest concentrated solar energy project operation in the world, contributing to the production of 100 megawatts of clean electrical energy, enough to supply 20,000 homes in the UAE.

• 2013: Sheikh Mohammed bin Rashid ordered that the Sheikh be named “Mohammed bin Zayed.” Emirates Road, which is a huge street that connects the various emirates of the country. He also ordered that it be named “Emirates Road.” On Dubai Transit Road, which is considered the second-largest street in Dubai.
• 2013 October: Sheikh Mohammed bin Rashid Al Maktoum officially opened Al Maktoum International Airport, which is located in the middle of Dubai International Aviation City, “Dubai World Central.” The movement of aircraft and passengers has a capacity of 7 million passengers annually. It is expected that, upon its completion, its capacity will reach 160 million passengers and 12 million tons of freight annually.

2. United Arab Emirates Legal System

2.1. The Basic System

Although the core principles of law in the UAE are drawn from Sharia, most legislation is comprised of a mix of Islamic and European concepts of civil law, which have a common root in the Egyptian legal code established in the late 19th to 20th centuries. The French influence is most clearly demonstrated by the adoption of the civil law by most countries in the region similar to those in European states, rather than the common-law system in the UK.

In addition to specific legal legislation covering agencies, company law, labor law, and intellectual property, the UAE has enacted civil and commercial codes. Although the system has led to the development of comprehensive and structured legal systems, they are rigid and inflexible to some degree, and they constitute the bureaucracy of regulation that is associated with countries in the Middle East region.

The structure of the legal system is complex with both dual courts, Sharia courts, and civil courts operating in parallel, but covering different areas of the law. For example, in the UAE, each Emirate has its federal court of first instance, although Dubai and Ras al Khaimah have their separate judicial frameworks.

The basic system of the United Arab Emirates is a constitutional federal state based on a union between political units located in the seven emirates that merged into a single union. It is governed by single judicial, legislative, and executive powers, and its sovereignty prevails over the Union State, similar to federal states. It is worth saying that the United Arab Emirates includes two levels of government, one at the local level in the Emirates, which is handled by the local government, and the other at the federal level, which is handled by the federal government. The state’s constitution specifies the powers granted to each of these governments, and a group of factors helped to establish federalism.

UAE’s legal system, as with the other legal systems in the Gulf, is usually quite complicated and those unfamiliar with their workings can find this very difficult. The fact is that these systems are completely different from those in the West with a whole different language, which makes it worrying for those who want to transact business in the UAE and the Gulf states.

Although these systems are different, the basic legal principles and structure are logical and understandable. They have evolved over many centuries, in a similar way to the West and, especially in the UAE, are adapting to the changing needs of society with new developments in thinking for the modern age. More changes in commercial law have liberalized legal regimes, creating a more open and understandable environment for foreign businesses and investors.

The basis of the legal system in the UAE is Sharia or Quranic Law. In the constitutions, Islam is identified as the state religion as well as the principal source of law. However, although the principles of Sharia influence criminal and civil laws, the direct influence of Sharia in the UAE is primarily confined to social laws, such as family law, divorce, or succession. Most commercial matters are now dealt with by either civil courts or permanently established arbitration tribunals.

Several core principles of Sharia apply to business transactions and have influenced the development of commercial codes that apply in the UAE. Although these concepts don’t directly translate into commercial codes (although they may do in Islamic finance), they have exerted an influence over the drafting and interpretation of these laws. These are:

• Usury or charging of interest (riba) is forbidden. According to Sharia, money is not a commodity that can be traded, nor does it have a value over time if left unused. Therefore, interest earned is an unjust income.
• Risk should be shared as income cannot be derived from interest payments, investors should share in profits or losses of an investment in proportion to the amount that they put into the transaction, and thus the level of risk they undertook.
• Uncertainty (gharar) in a contract is prohibited: Both parties must undertake a contract with full knowledge of all the terms. This means that the amount of capital or goods should be agreed in advance and stipulated in the contract.
• Competence As is the case in most legal jurisdictions, the law also specifies that the parties in a contract must possess the legal capacity to understand and assume the obligations of the contract.
• Consent the parties to a contract should enter into it with their own free will and should not be subject to coercion or duress.

2.1.1. Issuance Constitution of United Arab Emirates

Since its establishment on the 2nd of December 1971, the UAE has set a temporary constitution, which rapidly has turned into a permanent one. This happened after the federal state of the UAE established its stability, committed to a moderate policy, and made cultural changes and giant accomplishments on the local, regional, and international levels and further progressed for the people of this federation. By so doing, this would be one of the most successful experiences of unification in modern history.

This constitution explains the main rules of the political and constitutional organization of the state. It has demonstrated the main purpose of the establishment of the federation, its objectives, and its components on the local and regional levels. It has also elaborated on the major social and economic pillars of the federation and stressed public rights, responsibilities, and freedoms. Moreover, it has highlighted federal authorities, organized issuance of federal legislation, and the competent authorities as well. Above all, it has also dealt with the financial affairs of the federation, armed and security forces provisions, and legislative, executive, and international jurisdictions between the federation and the member emirates.

2.1.2. Constitutional Amendments and Procedures

According to Article 144 of the constitution, amendments to the constitution are drafted by the Federal Supreme Council and must be approved by a two-thirds majority of the Federal National Council, after which the amendment is signed into law by the president.

2.2. The Values of Justice and Issuance of Laws

2.2.1. The Values of Justice

There is a separation of Executive, Legislative, and Judicial Powers. The Constitution describes five federal institutions. These are the Federal Supreme Council (FSC-executive), the President of the Union and the Vice President, the Council of Ministers of the Union, the Federal National Council (FNC-legislative), and the Judiciary of the Union. The Federal Supreme Council elected Abu Dhabi’s President Shaikh Zayed unanimously for the sixth time on December 2, 2001, as the President of the Union.

The Council of Ministers drafts decrees and various decisions. The prime minister and the members of the cabinet are responsible to the president and to the Federal Supreme Council (FSC), which is the highest executive body in the federation, made up of the rulers of the seven emirates.

Main Provisions:

• The Federal Supreme Council is the highest constitutional authority in the UAE. It is also the highest legislative and executive body. It establishes general policies, sanctions, and federal legislation. The rulers of Abu Dhabi and Dubai have veto power. The FSC meets four times a year, usually informally.
• The 1996 constitution governs the relationship between the federal government and the emirate governments by giving the central government specific powers and leaving an unspecified area of implicit powers to the emirates. Each emirate retains control over its own oil and mineral wealth and some aspects of internal security. The federal government asserts primacy in most matters of law and government.
• Articles 120 and 121 of the constitution assign responsibility to the federal government in areas such as foreign affairs, security and defense, nationality and immigration issues, education, public health, currency, postal, telephone, and other communications services, air traffic control, and licensing of aircraft and several other topics specifically prescribed, including labor relations, banking, delimitation of territorial waters and extradition of criminals. Article 121 was amended in 2004 to allow for the devolution of legislative authority vested in the Union onto local federal organizations, specifically the newly formed Dubai International Financial Center (DIFC). The amendment sets a precedent for the expansion of the federal authority.
• Concerning the Emirates, article 116 stipulates that “the Emirates shall exercise all powers not assigned to the Federation by this Constitution.” Article 122 further emphasizes that “the Emirates shall have jurisdiction in all matters not assigned to the exclusive jurisdiction of the Federation, in accordance with the provision of the preceding two Articles.” The constitution also enables the rulers of the emirates, however, to relinquish, if they wish, certain areas of authority prescribed as being the responsibility of individual emirates to the federal government. The decision to unify the Armed Forces in the mid-1970s is an example of this prerogative.
• The 1971 constitution permitted each emirate to retain or to take up membership in the Organization of Petroleum Exporting Countries (OPEC) and the Organization of Arab Petroleum Exporting Countries (OAPEC), although none has done so. The only emirate to be a member in 1971, Abu Dhabi, relinquished its memberships in favor of the federation.
• The relationship between the federal and the local levels of government continues to change and evolve. Smaller emirates have benefited from the federation in areas like education and tourism. At the same time, in other areas, such as the judiciary, there has been an evolving trend towards a further voluntary relinquishment of local authority to the federal institutions.

Civil Rights:

• Traditional and modern forms of government coexist and supplement each other. Although political leaders in the emirates are not elected, citizens may express their concerns directly to their leaders via traditional mechanisms, such as the open majlis, or informal assembly.
• The constitution prohibits torture or degrading treatment and prohibits arrest, search, detention, imprisonment, and entry into homes without the owner’s permission, except by the law. It provides for the independence of the judiciary, but its decisions are subject to review by the political leadership. The constitution also states in Article 25 that all persons are equal before the law and there shall be no discrimination between citizens of the Union regarding race, nationality, religious belief, or social status. Article 28 points out that the Penalty is personal, an accused person is presumed innocent until his conviction is proved before a court of law wherein the necessary guarantees of the right of self-defense are secured, the law shall prescribe the cases in which the presence of a defense counsel shall be assigned and physical and moral abuse of an accused person is prohibited. Article 27 adds that crimes and punishments shall be defined by the law and no penalty shall be imposed for any act of commission or omission committed before the relevant law has been promulgated.

2.2.2. Issuance of Laws

Federal laws are drafted by the Council of Ministers and are then submitted to the FNC, where they are first sent to the proper committee. If a committee makes amendments to the proposed draft by the executive, the amended draft goes to the Legal and Legislative Committee, before the floor debate, for consultation and formulation of its provisions. Finally, the draft is presented to the president of the federation.

Part 5 of the UAE constitution explains the process of legislation in the UAE which is: The legislative branch is the unicameral Al-Majlis Al-Watani Al-Ittihadi, or Federal National Council (FNC) of (Seven Emirates). Twenty of the FNC’s 40 members are elected by 7000 notables who are chosen by the local governments to represent various social groups and tribes. The other twenty are appointed by the rulers of the Emirates to serve a two-year term of office with the possibility of renewal. The selection process of the FNC members is left by the constitution to the Emirates’ discretion. Of the 40 members, the share of Abu Dhabi and Dubai is eight members each. Sharjah and Ra’s al Khaymah have six members each, and Ajman, Umm al Oaywayn, and Al Fujayrah each have four members on the Federal National Council.

The FNC reviews legislation and proposes amendments to it, but it does not have the power to veto laws or to initiate new laws. As such, the parliament is largely a consultative body. The Council, however, does have the power to examine and amend proposed legislation and the power to summon and question any federal minister as well as its members. One of the main duties of the FNC is to discuss the annual budget.

The beginning and termination of legislative sessions are determined by presidential decree. Official Gazette and Law Enforcement: Article 111 clearly states that laws shall be published in the Official Gazette of the Union within a maximum of two weeks from the date of their signature and promulgation by the President of the Union after the Supreme Council has ratified them.

Article 112 clearly states that no laws may be applied except on what occurs from the date they become in force and no retroactive effect shall result in such laws. However, if necessity so requires, the law may stipulate the contrary in matters other than criminal. The power of law starts after publication in the official Gazette.

The Emirati constitutional legislator has always begun to develop, and on February 10, 1972, Constitutional Amendment No. (1) of 1972 was issued, which added a final paragraph to Article One of the Constitution, which reads as follows: “And upon accepting the admission of a new member to the Union The Federal Supreme Council determines the number of seats allocated to this member in the Federal National Council in addition to the number stipulated in Article 68 of this Constitution.”

The constitutional amendment was also issued on 11/28/1986 to Constitution No. 1 of 1976 AD, which stipulated, in its first article, that “the text of Article (142) of the Interim Constitution of the United Arab Emirates shall be repealed so that the state alone shall have the right to establish land and naval armed forces.” An amendment was also issued on December 2, 1996, to Constitutional No. 1 of 1996 AD, which stipulated, in its second article, that “the city of Abu Dhabi shall be the capital of the Union.”

Also, on January 2, 2004, Constitutional Amendment No. 1 of 2004 was issued, stipulating that the text of Article 121 of the Constitution be replaced by another text. According to this replacement, a new matter was added to the matters in which the Union is unique in legislation, which is “the organization and method of establishing financial free zones and the scope of their exclusion from the application of the provisions of federal legislation.”

Until the constitutional amendment was issued in 2009, under Constitution No. 1 of 2009, which included the largest number of amendments to the texts of the constitution, the first article of this amendment stipulated that the word “deputy” be replaced with the word “deputies” wherever it occurs in Articles (54), (55), (57), and (67), and it is also replaced with the word “his deputy” in the phrase “one of his deputies” in Article (93) of the Constitution. Under the second article of the amendment, seven articles of the Constitution were replaced.

On March 29, 2023, constitutional amendments were introduced to Articles (51) and (52), where the amendment replaced the text of these two articles with the following:

• Article 51: The Supreme Council of the Federation elects from among its members a President of the Federation and a Vice-President of the Federation. The Vice President of the Federation exercises all the powers of the President in his absence for any reason. As an exception to the provisions of the previous paragraph, the President of the Union may nominate another representative and present this nomination to the Supreme Council. This representative shall be appointed by a decision issued by the President of the Union and his two deputies.
• Article 52: The term of the President and his two deputies is five years, and his two deputies may be re-elected to the same position. Upon assuming the responsibilities of his position, each of them shall take the following oath before the Supreme Council of the Federation: I swear by Almighty God to be loyal to the State of the United Arab Emirates, to perform my duty honestly and sincerely, and to preserve the independence of the Union and the integrity of its lands. Article Two stipulates that this constitutional amendment shall be effective from the date of its issuance and publication in the Official Gazette.

Different Legislations:

• Different legislations are issued in UAE Laws in many different areas, for example: Criminal Procedures Law (English), Civil Procedures (English), Personal Status Law (English), Anti-Money Laundering Law No. 4 English
• Bylaws of the Federal National Council, 1977 [English], Adopted January 1, 1977.
• Federal Law No. 6 of 1974 Concerning Public Welfare Associations
• Nationality and Passports Law (17 / 1972) Arabic, Constitution, 1971 English, adopted July 18, 1971. Constitution 1971 (rev. 2009) English. For the latest version of Legislations and Laws follow this link (Arabic and English)

The new UAE Federal Crimes and Punishments Law 2021 came into effect in January 2022. It maintains many offensive provisions in the previous penal code and adds new restrictions or increases penalties to existing provisions. The new law includes 479 articles related to crimes and felonies and their penalties, and in some cases, the articles represented a retreat from the amendments introduced in 2020 to the older Penal Code, which witnessed a greater easing of restrictions imposed on individual freedoms.

The new UAE Cybercrime Law No. 34 of 2021, regarding combating rumors and cybercrimes, in turn, replaces the repressive Cybercrime Law of 2012.

2.3. Conclusion of Treaties and Agreements

Article 47 points out that The Supreme Council of the Union shall exercise Ratification of treaties and international agreements, and such ratification shall be accomplished by decree. When article 60 adds that The Council of Ministers shall be responsible for supervising the execution of international agreements concluded by the Union. Further Article 91 states that the Government shall inform the Union Assembly of international treaties and agreements concluded with other states and the various international organizations, together with appropriate explanations.

Subsequently, the “Federal Tax Authority” decision came into effect on the first of next March, specifying specific periods for registering persons subject to corporate and business tax. Calling on holders of licenses issued in January and February to quickly submit tax registration applications before the end of next May to avoid fines.

Virtual awareness-raising workshops introduce the requirements for committing to submit registration applications for corporate tax before the end of the periods specified by the decision.

The Federal Tax Authority has set periods for categories of those subject to corporate tax to submit applications for registration with the authority to avoid violating tax legislation.

This came in a new decision issued by the Authority regarding the deadlines for submitting applications for registration of taxable persons in accordance with Federal Decree Law No. (47) of 2022 regarding corporate and business tax and its amendments, which entered into force last June, and which applies to tax periods that began on or after June 1, 2023.

The decision of the Federal Tax Authority, which will come into effect as of March 1, 2024, clarified that the periods specified for submitting applications for registration of those subject to corporate tax include legal persons (residents and non-residents), and natural persons (residents and non-residents). He noted that a resident legal person was incorporated, created, or otherwise recognized before March 1, 2024.

3. The Governance and Authorities

Article 45 shows that the Union authorities shall consist of The Supreme Council of the Union, The President of the Union and his Deputy, The Council of Ministers of the Union, The National Assembly of the Union, and The Judiciary of the Union

3.1. The Supreme Council of the Union

The Federal Supreme Council consists of rulers of the seven emirates constituting the federation or their deputies in their emirates in case of rulers’ absence or unavailability. Each Emirate has one single vote in the council resolutions and deliberations.

The Federal Supreme Council performs the following responsibilities:

• Formulating the general policy on all matters invested in the federation under the constitution, and considering all matters that could lead to the achievement of the objectives of the federation and the common interests of the member emirates.
• Endorsing the various federal laws before their issuance including laws of the annual general budget of the federation and the closing accounts.
• Sanctioning the decrees on matters that by the provisions of the constitution are subject to the ratification and approval of the Federal Supreme Council. Such sanctioning takes place before the issuance of such decrees by the president of the council.
• Ratification of treaties and international agreements. Such ratification is done by decree.
• Approving the appointment of the prime minister of the federation, accepting his resignation, and requesting him to resign upon the suggestion of the President of the Federation.
• Approving the appointment of the president and the judges of the Supreme Federal Court, accepting their resignations, and dismissing them in the cases specified by the Constitution. Such actions are done by decrees.
• Supreme control over the affairs of the federation in general.
• Any other relevant responsibilities stipulated in the constitution or the federal laws.

Mechanisms of Federal Supreme Council Resolutions:

• Federal Supreme Council lays down its regulations including its procedure for conduct of business and the method for voting on its resolutions. The deliberations of the Council shall remain secret.
• Federal Supreme Council establishes a general secretariat consisting of a sufficient number of officials to help it in performing its duties and functions.
• Resolutions of the Federal Supreme Council on substantive matters are made by a majority of five of its members provided that such majority includes the vote of the emirates of Abu Dhabi and Dubai. The minority shall abide by the opinion of the aforesaid majority. However, resolutions of the council on procedural matters shall be issued by a majority vote. Such matters are defined in the by-laws of the council.
• The Federal Supreme Council holds its sessions in the capital of the federation; however, they can be held in any other place agreed on beforehand.

3.2. The President of the Union

Article 51 states that the Supreme Council of the Union shall elect from among its members a President and a Vice President of the Union and that the Vice President of the Union shall exercise all the powers of the President in the event of his absence for any reason.

The President of the Union shall assume the following powers:

• Presiding the Supreme Council and directing its discussions.
• Presiding the Supreme Council into session and terminating its sessions according to the rules of procedure upon which the Council shall decide its bylaws. He must convene the Council for sessions, whenever one of its members so requested.
• Calling the Supreme Council and the Council of Ministers into joint session whenever necessity demands.
• Signing Union laws, decrees, and decisions that the Supreme Council has sanctioned and promulgated.
• Appointing the Prime Minister, accepting his resignation, and relieving him of office with the consent of the Supreme Council. He shall also appoint the Deputy Prime Minister and the Ministers and shall receive their resignations and relieve them of office by a proposal from the Prime Minister of the Union.
• Appointing the diplomatic representatives of the Union to foreign states and other senior Union officials both civil and military (except the President and Judges of the Supreme Court of the Union) and accepting their resignations and dismissing them with the consent of the Council of Ministers of the Union. Such appointments, acceptance of resignations, and dismissals shall be accomplished by decrees and in accordance with Union laws.
• Signing of letters of credence of diplomatic representatives of the Union to foreign states and organizations and accepting the credentials of diplomatic and consular representatives of foreign states to the Union and receiving their letters of credence. He shall similarly sign documents of appointment and credence of representatives.
• Supervising the implementation of Union laws, decrees, and decisions through the Council of Ministers of the Union and the competent Ministers.
• Representing the Union internally, vis-a-vis other states, and in all international relations.
• Exercising the right of pardon and commutation of sentences and approving capital sentences according to the provisions of this Constitution and Union laws.
• Conferring decorations and medals of Honor, both civil and military, in accordance with the laws relating to such decorations and medals.
• Any other power vested in him by the Supreme Council or vested in him in conformity with this Constitution or Union laws.

3.3. The Council of Ministers of the Union

Article 55 shows that The Council of Ministers of the Union shall consist of the Prime Minister, his Deputy, and several Ministers, and Article 57 states that the Prime Minister, his Deputy, and the Ministers shall, before assuming the responsibilities of their office take the following oath before the President of the Union:

“I swear by Almighty God that I will be loyal to the United Arab Emirates; that I will respect its Constitution and laws; that I will discharge my duties faithfully; that I will completely observe the interests of the people of the Union and that I will completely safeguard the existence of the Union and its territorial integrity.”

Responsibilities of the Council of Ministers of the Union:

• Following up the implementation of the general policy of the Union Government both domestic and foreign.
• Initiating drafts of Federal Laws and submitting them to the Union National Council before they are raised to the President of the Union for presentation to the Supreme Council for sanction.
• Drawing up the annual general budget of the Union, and the final accounts.
• Preparing drafts of decrees and various decisions.
• Issuing regulations necessary for the implementation of Union laws without amending or suspending such regulations or making any exemption from their execution. Also issuing police regulations and other regulations relating to the organization of public services and administrations within the limits of this Constitution and Union laws. A special provision of the law or the Council of Ministers may charge the competent Union Minister or any other administrative authority to promulgate some of such regulations.
• Supervising the implementation of Union laws, decrees, decisions, and regulations by all the concerned authorities in the Union or the Emirates.
• Supervising the execution of judgments rendered by Union Law Courts and the implementation of international treaties and agreements concluded by the Union.
• Appointment and dismissal of Union employees in accordance with the provisions of the law, provided that their appointment and dismissal do not require the issue of a decree.
• Controlling the conduct of work in departments and public services of the Union and the conduct and discipline of Union employees in general.
• Any other authority vested in it by law or by the Supreme Council within the limits of this Constitution.

3.4. The National Assembly of the Union

Article 55 states that the National Assembly of the Union shall be composed of forty members. Seats shall be distributed to member Emirates as follows:

• Abu Dhabi 8 seats, Dubai 8 seats, Sharjah 6 seats, Ras AI Khaimah 6 seats, Ajman 4 seats, Umm AI Quwain, 4 seats, and Fujairah, 4 seats.
• Article 70 shows the conditions that the member of the Union National Assembly must satisfy as follows:
  • Must be a citizen of one of the Emirates of the Union, and permanently resident in the Emirate he represents in the Assembly.
  • Must be not less than twenty-five Gregorian years of age at the time of his selection.
  • Must enjoy civil status. Good conduct, reputation, and not previously convicted of a dishonorable offense unless he has been rehabilitated in accordance with the law.
  • Must have adequate knowledge of reading and writing.

Article 77 clearly states that the member of the National Assembly of the Union shall represent the whole people of the Union and not merely the Emirate which he represents in the Assembly.

3.5. Federal Judiciary and UAE Court System

The United Arab Emirates is essentially a civil law jurisdiction heavily influenced by French, Roman, Egyptian, and Islamic law. Common law principles, such as adopting previous court judgments as legal precedents, are generally not recognized (although judgments delivered by higher courts are usually applied by lower courts). Only local firms may appear as counsel before a court. As the UAE has established itself as a regional hub for international business, arbitration is gradually becoming a popular method of dispute resolution.

Court Structure: Although there is a federal court structure with a final court of appeal in Abu Dhabi (the Abu Dhabi Supreme Court), both Dubai and Ras Al Khaimah are not part of the federal judicial system. Unlike the other emirates, Dubai and Ras Al Khaimah have their court systems, which are not subject to the federal Supreme Court. There are three main branches within the court structure: civil, criminal, and Sharia, or Islamic, law. The court structure in Dubai is comprised of the following courts: The Court of First Instance, the Court of Appeal, and the Court of Cassation. The Court of First Instance includes the Civil Court, the Criminal Court, and the Sharia Court.

A UAE court will accept an attorney appointed by a litigant according to the provisions of the law, and the attorney must prove his appointment as representative of his client by an official deed (i.e. power of attorney) notarized by a notary public.

The Civil Court: The Civil Court (or Court of First Instance) hears all claims ranging from commercial matters (including debt recovery cases) to maritime disputes. After judgment has been delivered, the parties have the right to appeal to the Civil Court of Appeal on factual and/or legal grounds within 30 days of the date of judgment. It is possible to introduce additional evidence to the Court of Appeal and/or request that additional witnesses be called to testify. Thereafter, parties may appeal on points of law alone to the Court of Cassation (the highest court in Dubai), which is usually composed of five judges. The appeal must be filed within 30 days of the date the parties were notified of the judgment of the Court of Appeal. All decisions of the Court of Cassation are final and are not subject to appeal.

Criminal Actions: Criminal actions in the UAE commence with the filing of a complaint with the local police in the jurisdiction where the offense was committed. During the investigation, police may take the statements of any parties involved. Following this initial investigation, local police usually refer the matter to the prosecutor’s office within 48 hours of the filing of the complaint. The police may refer the matter to the prosecutor for advice before officially forwarding the case with a recommendation to press charges.

The prosecutor’s office will then investigate the matter, take the statements of any parties involved, and hear their witnesses or any other person the prosecutor decides has information germane to the matter. The prosecutor’s office will then decide either to refer the matter to the court or to decline to press charges in the absence of sufficient evidence that a crime has been committed. The prosecutor must decide either to press charges or drop the case within 14 days of receiving the case from the police. If the prosecutor needs more time to reach a decision, he may file a request for an extension with the court, which is approved or denied at the court’s discretion. Although it happens extremely rarely and only in extenuating circumstances, cases have been known to sit with the prosecutor for as long as a year.

Sharia or Islamic Courts: Sharia or Islamic courts work alongside the civil and criminal courts in the UAE. The Sharia court is the Islamic court in the UAE and is primarily responsible for civil matters between Muslims. Non-Muslims will not appear before a Sharia court in any matter. Sharia courts have the exclusive jurisdiction to hear family disputes, including matters involving divorce, inheritances, child custody, child abuse, and guardianship of minors. In the absence of any particular provision in the UAE codified law, the Islamic principles of Sharia as found in the Islamic Sharia textbooks are applied.

The Sharia court may, at the federal level only (which, as mentioned earlier, excludes Dubai and Ras Al Khaimah), also hear appeals of certain criminal cases including rape, robbery, driving under the influence of alcohol, and related crimes, which were originally tried in lower criminal courts.

The Court of Cassation: The Court of Cassation is the highest in the UAE, and it will only hear disputes on matters of law. The Court of Cassation will not only act as an appellate court concerning the decisions of lower courts but will also supervise these lower courts to ensure that they are applying and interpreting the law correctly. Lower courts must abide by the legal principles set down by the Court of Cassation.

The Emirate of Dubai has its own Court of Cassation. In all Emirates, other than Dubai and Ras Al Khaimah, the final appeal will be to the federal Supreme Court located in Abu Dhabi. Drafted 22 March 2005. Based upon an article entitled “The Courts System in the UAE,” by Mohamed Ali Abou Sakr, Liberty magazine, Issue 03, March 2005. Edited for content and to include post-research into the topic.

Constitutionality of Laws and Judicial Review: The Court of Cassation is also entrusted with judicial review for all legislation, both for laws that originate at the federal level and for those enacted by the individual emirates.

3.6. Provincial and Local Government

Each of the seven emirates has its government, which functions in tandem with the federal government. The largest and most populous emirate, Abu Dhabi, has its own central governing body, the Executive Council, chaired by the crown prince; the Eastern and Western Regions and the island of Das are headed by a ruler’s representative. Municipalities administer the main cities, each of which has a municipal council. The National Consultative Council functions like the Federal National Council. Local departments carry out various administrative functions. A similar system of municipalities and departments exists in the other emirates.

The Emirates: Article 116 shows that the Emirates shall exercise all powers not assigned to the Union by this Constitution. The Emirates shall all participate in the establishment of the Union and shall benefit from its existence, services, and protection while Article 117 describes the targets of the rule in each emirate which are maintaining security and order within its territories and the provision of public utilities for its inhabitants and the raising of social and economic standards. Further article 118 states that the member Emirates of the Union shall all work for the co-ordination of their legislations in various fields with the intention of unifying such legislations as far as possible & adds that it is allowed, after obtaining the approval of the Supreme Council, for one emirate or more to agglomerate in a political or administrative unit, or unify all or part of their public services or establish a single or joint administration to run any such service. In connection with the matters regarding the execution of judgments and requests for commissions of rogation and serving legal documents and surrender of fugitives between member Emirates of the Union, Article 119 provides that it shall be regulated with utmost ease by Union law.

3.7. Government for the Future

The UAE Federal Government is in the process of major structural changes. Several federal ministries, authorities, and institutions are being ceased or merged. In the new government strategy, the UAE has a roadmap to outsource most government services to the private sector.

3.7.1. Highlights of 2016 Government Structural Changes

• Introduction of the post of Minister of State for Happiness, whose primary mission is to harmonies all government plans, programs, and policies to achieve a happier society
• Merger of Ministries of Education and Higher Education with two Ministers of State in support
• Foundation of Emirates Schools Establishment to manage public schools as an autonomous, semi-independent authority.
• Merger of Marriage Fund into Ministry of Social Affairs; nurseries will fall under the Ministry of Education
• Establishment of Higher Education and Human Resources Council to restructure the development of human resources.
• Establishment of an independent entity to oversee public hospitals.
• Renaming the Ministry of Health to the Ministry of Health and Prevention of Diseases; the ministry will focus on the prevention of diseases in addition to regulating the health sector.
• Integration of the National HR Development and Employment Authority into the Ministry of Labor
• Renaming the Ministry of Labor to the Ministry of Human Resources and Emiratisation
• Renaming the Ministry of Social Affairs to the Ministry of Community Development
• Renaming the Ministry of Culture to the Ministry of Culture and Knowledge Development; the Ministry will focus on content and protection of the Arabic language and the development of knowledge.
• Renaming the Ministry of Environment and Water to the Ministry of Climate Change and Environment
• Attaching National Council for Tourism & Antiquities with Ministry of Economy
• Introduction of the post of Minister of State for Tolerance to establish tolerance as a fundamental value of the UAE society.
• Establishment of UAE Council of Scientists as an advisory body which will include leading researchers and academicians; the Council will review national policy for science, technology, and innovation to develop a new generation of scientists.
• Renaming the Ministry of Cabinet Affairs to the Ministry of Cabinet Affairs and Future; it will be tasked with devising future strategies.
• Establishment of a Council of Youth to be chaired by a woman Minister of State for Youth whose age is no more than 22 years; the Council will have an elite group of young men and women who will serve as advisors to the government.
• Expanding the role of the Ministry of Foreign Affairs to include supervising the UAE’s foreign aid; two Ministers of State will oversee foreign aid.

3.7.2. Creation of a Ministry of State for Happiness

UAE has taken the initiative to appoint the minister of state for happiness to be the first in the region and one of the few in the world. This step was made part of the 2016 Cabinet reshuffle and the creation of the government of the future. The Minister of State for Happiness will assume the responsibility of harmonizing all government plans, programmers, and policies to achieve a happier society. The appointed minister, Her Excellency Ohoud Bint Khalfan Al Roumi, is a young woman which indicates the trend of the UAE government to encourage assigning women and youth to leadership positions.

3.7.3. Technology in Providing the Government Services

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, launched a smart government center on September 9, 2017, at Emirates Tower. The center introduces artificial intelligence technology, Watson, and smart robots which have been launched to offer customers unprecedented services. It will combine 14 government entities under one roof and will provide smart access to more than 100 government services offered by eight public entities, including Ministry of Interior, Ministry of Human Resources and Emiratization, Shaikh Zayed Housing Program, Emirates Post Group, Ministry of Infrastructure Development, Ministry of Climate Change and Environment, Ministry of Culture and Knowledge Development and Telecommunications Regulatory Authority. This step aims to facilitate and streamline access to vital government services and reduce the number of visits through all-in-one visits and unified payment.

4. Focus on Some Topics of Law and Economy / Business:

We chose three different topics to focus on: first in the domestic community, second in the international community, and third in the business community.

• Transparency and Protection of State Assets
• Human Rights and Cooperation with the International Community
• Law and Economy / Business

4.1. Transparency and Protection of State Assets

The Federal National Council of the UAE discusses the annual budget and yearly final accounts. Under the country’s constitution, half of each emirate’s revenues are reserved for the federal budget, but in practice, Abu Dhabi and Dubai generate most cent of the UAE’s gross domestic product and are the only ones to contribute to federal finances. Of the two, Abu Dhabi’s contributions are larger by some margin. The deficit is typically funded by additional contributions from the two emirates, together with some support from the UAE Central Bank. Negotiations are underway with other members of the Gulf Cooperation Council to prepare a common data standard and fiscal accounting framework.

Public Audit: Governed by Federal Law 7 of 1976, the State Audit Institution (SAI) conducts audits of ministries, federal government departments, public corporations, and all entities in which public ownership is at 25 percent or more of total shares. In cases of financial misconduct, the president of the SAI may decide to prosecute the case before a special disciplinary council or to refer it to the concerned authority. The SAI is expected to write a general annual report of all its activities.

Auditors in the UAE are under the mandate of Law No. 9 of 1975, which established a register for auditors and established standards for the profession in the country. Law No. 22 of 1995 and supplementary regulations in Decree No. 49 of 1997 have now superseded the original legislation. All auditors in the country must register with the Ministry of Economy and Commerce. UAE business law expressly prohibits obstructing auditors’ access to company books and withholding required information; violating laws about the employment of U.A.E. nationals; and disregarding transparency laws for auditors.

Public Procurement: The Public Tenders Law 16 of 1975 regulates all public-sector tenders except those concerning federal defenses or the individual emirates. The requirement that only UAE entities or nationals may bid may be waived when bids are directly solicited from manufacturers or, on a case-by-case basis, when the goods or services are not widely available.

4.2. Law and Economy / Business:

4.2.1. UAE Economy and Business

United Arab Emirates Economy: The UAE consists of seven states (emirates). Abu Dhabi, the most renowned oil-rich state rated as the world’s richest city by Fortune in 2007 – and Dubai – the commercial hub of the Middle East. The country is home to many projects with international flavor including the world’s tallest tower, biggest airport, seaport, and indoor theme park. The country realized the significance of foreign investment some time ago and has sought to meet the competing demands of the world’s largest building program whilst providing an investment climate that meets those demands.

The region attracts substantial foreign investment in a variety of areas, including defense, infrastructure, real estate, transportation, oil & gas, health, and education. Investors need to understand or at least be receptive to the region’s language, culture, and legal system and the style that needs to be followed in commercial agreements and negotiations.

The region is currently witnessing numerous incorporations, joint ventures, mergers and acquisitions, and cross-border transactions. A lawyer’s day-to-day professional life encompasses a variety of issues including — advising on the most suitable investment structures; ensuring legal and regulatory compliance; drafting and vetting complex agreements and documents; due diligence and negotiations with counterparties.

Also, in recent years we have witnessed phenomenal growth in dispute resolution through arbitration. The presence of world-class arbitration centers like the Dubai International Arbitration Centre, the Abu Dhabi Commercial Conciliation and Arbitration Centre, and the London Court of International Arbitration at DIFC are each providing valuable dispute resolution services.

Banking: The Central Bank, established by Union Law No. 10 of 1980, supervises a commercial banking system of 46 banks with over 300 branches. Like other central banks, it issues the national currency and directs monetary, credit, and banking policy. It also sponsored a seminar in 2004 about informal financial transfers in efforts to regulate and license this segment of the financial system. In late 2005, it joined the International Finance Corporation in promoting international practices of corporate governance in the formal banking sector.

The Central Bank tightened its supervision and monitoring program over the banks following a series of banking scandals and difficulties with non-performing loans in the 1980s and early 1990s. It also set a new risk-weighted minimum capital-asset ratio of Basel recommended minimum.

A new anti-money laundering law in May 2002 gave the Central Bank the power to freeze any suspected accounts for seven days without prior legal permission. The banks were required to provide all details of their clients and internal and external transactions on request and to report on any suspected deal. The Central Bank has already frozen or blacklisted nearly 30 bank accounts on these grounds and uncovered several money-laundering operations inside the UAE. Laws were passed in 2004 and updated against financing terrorism and addressing money laundering issues in the UAE’s financial-free zones.

Privatization: The federal government has encouraged diversification and privatization of the economy. Dubai has taken the lead in encouraging foreign investment, in efforts to become a leading hub of international commerce, while Abu Dhabi, which accounts for many percent of the oil production, is spearheading the privatization of utilities and seeking foreign investment in some sectors of the economy, particularly the power industry, to bring in modern technology and management techniques and reduce costs.

The most ambitious privatization plans concern water desalination and producing and distributing electricity. The companies are to be created in Abu Dhabi to manage the different aspects of producing, operating, scheduling, dispatching, and distributing water and electricity. Other issues include the elimination of government subsidies for water and electricity as well as a plan to trim some strong staff in the industry to lower costs and increase profitability.

Stock Exchange: The Emirates Securities and Commodities Authority (ESCA), established in 2000, is the regulatory and licensing body responsible for the market integrity and transparency of the Abu Dhabi Securities Market and Dubai Financial Market, which commenced operations in June of that year. The Dubai International Financial Center in turned opened global operations in September 2004, and efforts are continuing, with advice from the IMF, to develop a comprehensive regulatory framework for these emerging capital markets. There are plans to establish a Securities Exchange Markets Board to monitor the market. Listed companies are obliged in the interests of transparency to issue quarterly financial statements.

In 2006, 38 companies were listed for trade on the ADSM and 34 on the DFM. Market capitalization in the ADSM and the DFM reached 60% of GDP at the end of 2004 and was second regionally only to Saudi Arabia, although the turnover ratio remained below 4 percent of the value of traded stocks. The Central Bank is keen to promote the development of a bond market, as a means to improve liquidity, and allow companies to raise medium- and long-term finance.

The Dubai International Financial Center (DIFC) is intended to become a regional financial center on par with New York, London, Tokyo, and Hong Kong. The DIFC possesses its own legal structure and financial regulations, drawn up based on international best practices. The DIFC operates in dollars and contains its own regulatory body, the Dubai Financial Services Authority, and its exchange market, the Dubai Regional Exchange (DRX). The regulatory structure for the center was published in December 2003.

International Transparency Standards: The United Arab Emirates permits publication online of the IMF’s annual Staff Report on Article IV Consultations and joined the IMF’s General Data Dissemination System on July 31, 2008. The Emirates have also engaged with the IMF and World Bank in publishing Reports on the Observance of Standards and Codes (ROSC) for banking supervision and payment and settlement.

4.2.2. Business Laws in the UAE

The UAE provides a supportive legal framework for businesses in line with the vision of the country’s leadership and their deep conviction that an effective legal framework on par with international standards is essential to a competitive and prosperous economy. The country has issued several laws related to the economy, trade, and investment since its formation in 1971. These laws are listed in the right column of the page.

The UAE provides a supportive legal framework for businesses in line with the country’s vision of leadership and their deep conviction that an effective legal framework on par with international standards is essential to a competitive and prosperous economy. The country has issued and amended several laws related to the economy, trade, and investment since 2015, which shall be briefly reviewed below.

4.2.2.1. New Business Laws and Amendments

The UAE is currently working on upgrading many key legislations, especially concerning the development of the country’s economic infrastructure and investment climate, in a bid to better address investment issues and regulate the relationship between all parties concerned with the country’s economic development and investment process.

Draft bills on foreign investment, competition, arbitration, certificates of origin, industry affairs organization, suppressing commercial fraud, industrial property law, federal law on the organization of the auditing profession, and federal law on commercial companies are already being reviewed by the relevant authorities.

Foreign Investment Law: The new law on foreign investment removes a large part of the regulatory and administrative obstacles to attracting more foreign and Arab direct investment. It is aimed at creating a unified regulatory framework for foreign investment in terms of regulating investment procedures, registration, and licensing. The law also deals with the advantages, tax exemptions, and guarantees for foreign investors, as well as their rights and obligations.

The Foreign Direct Investment Law (Federal Law No.19 of 2018) (the FDI Law) came into force on
September 23, 2018, which is regarded as an important step towards the relaxation of the rules restricting foreign ownership of UAE companies, as the new FDI Law provides a framework for the UAE Cabinet to permit foreign shareholders to own up to 100 percent of companies in certain designated sectors. In contrast, the UAE Commercial Companies Law (Federal Law No. 2 of 2015) limited a foreign shareholder to holding a maximum of 49 percent of the shares in an onshore UAE company.

Competition Law: The competition law is aimed at promoting the principle of competition and evolving a competitive market that is ruled by sheer market mechanisms. The law is envisaged to free the national economy from all wrong practices that adversely affect its efficiency, including monopolies which are against the principle of competition, and prohibits all types of acts that lead to a monopoly. It is prepared in line with the recommendations made by the World Trade Organization (WTO) in its last review of the UAE’s trade policy.

The law also provides a conducive environment for businesses to promote efficiency, competitiveness, consumer welfare, and sustainable development in the country.

Recently, the Federal Decree by Law No. 36 of 2023 on the Regulation of Competition (the New Competition Law) has been issued, which abrogates and supersedes the previous competition law, Law No. 4 of 2012 (the Repealed Competition Law). The New Competition Law has introduced some major changes, through numerous new provisions, to the regulatory framework of competition in the UAE, which covers several fields including Jurisdiction and scope of application, Anti-competitive conduct, Sectorial Exemptions, General Exemptions, Enhanced Competition Protection, Merger Control, and Penalties.

While the Repealed Competition Law was not effectively enforced and provided for an extensive list of exemptions, the New Competition Law seems to cast a wider net and encourages the Ministry of Economy to take more action. To conclude, these changes indicate that competition authorities are becoming more active in regulatory oversight to bolster antitrust enforcement, providing a safer and more stable environment for investment.

Law on Certificate of Origin: The law on certificate of origin aims to reorganize the legislation related to the rules of the certificate of origin based on the progress achieved in this area. The new law will address various issues about the origin of national goods and the issuance of certificates of origin. It will also allow the Ministry of Economy to impose penalties and fines on those who issue fake certificates, documents, or data.

The Federal Law No. 11 of 2019 on the Rules and Certificates of Origin has been enacted, facilitating procedures regarding proof of origin and import documentation requirements. Under Article (5) Paragraph (2) of the aforementioned law and in line with the country’s policy to facilitate trade, Dubai Customs will accept the origin of certain goods as indicated in the invoices as sufficient proof of origin, and importers will no longer be required to submit a separate certificate of origin (COO), except where origin substantiation is required to obtain preferential duty treatment under a free trade agreement (FTA). Before the enactment of the above-mentioned law, importers had to submit a COO for every shipment of goods imported into Dubai.

Federal Law on Commercial Companies: The new federal law on commercial companies makes it mandatory for all companies in the country to develop a general framework for corporate governance to ensure the protection of shareholder rights, achieve transparency, disclose financial data, and improve the efficiency and integrity of the company’s director board.

The Companies Law: The Commercial Companies Law enhances the business environment in the Emirates. Federal Law No. 26 regarding commercial companies in 2020 is the most recent law regulating the work of companies in the Emirates. This law amended some provisions of Federal Law No. 2 of 2015 regarding commercial companies.

On September 20, 2021, Federal Law No. 32 of 2021 on Commercial Companies (New Companies Law) was issued, replacing Federal Law No. 2 of 2015 on Commercial Companies. The New Companies Law notably strengthens the principles of foreign ownership of companies, corporate governance, and minority protection. Moreover, the recent law introduces several significant changes to the regulatory framework governing commercial companies in the UAE, including the introduction of a regime to allow for public joint stock companies (PJSCs) to be divided by splitting up the company’s assets or activities and related obligations and ownership rights into two or more separate companies, the introduction of special purpose acquisition companies (SPACs) and special purpose vehicles (SPVs), and the introduction of measures aimed at facilitating public offerings. In addition, the New Companies Law also introduces provisions allowing for a joint stock company to specify the value of its shares, no longer restricted by a minimum of 1 AED, and reaffirms the principle of the relaxation of foreign ownership restrictions recently introduced.

The Law on Commercial Arbitration: The new commercial arbitration law in collaboration with several legal experts from the Abu Dhabi Conciliation and Arbitration Centre.

The law will be applied to resolve commercial disputes instead of the UAE Civil Procedure Code (Federal Law No. (11) of 1992. As per the new law, civil cases will be heard by the civil courts of respective emirates, while the Abu Dhabi Federal Court of Appeal will hear international cases. The law is in line with international arbitration principles, particularly the Model Law of the United Nations Commission on International Trade Law (UNCITRAL) of 1985 and its amendments in 2006.

Tax Law: The Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses governs corporate taxes.

The Federal Tax Authority has set periods for categories of those subject to corporate tax to submit applications for registration with the authority to avoid violating tax legislation. This came in a new decision issued by the Authority regarding the deadlines for submitting applications for registration of taxable persons per Federal Decree Law No. 47 of 2022 regarding corporate and business tax and its amendments, which entered into force last June and applies to tax periods that began on or after June 1, 2023.

The decision of the Federal Tax Authority, which will come into effect as of March 1, 2024, clarified that the periods specified for submitting applications for registration of those subject to corporate tax include legal persons (residents and non-residents) and natural persons (residents and non-residents). He noted that a resident legal person who was incorporated, created, or otherwise recognized before March 1, 2024, must submit a registration application for corporate tax (FTA).

4.2.2.2. Development of Business Laws

Significant efforts go into the development process of laws and legislations to ensure their compatibility and relevance to the general economic and social conditions of the country. Preparation of laws takes a series of procedures and discussions involving several federal and local government bodies.

The Ministries of Commerce and Economy, when introducing any amendments to an existing law or preparing a new bill, presents a memorandum seeking the permission of the cabinet which, after studying the request, authorizes the ministry to form the draft bill. The ministry then prepares a first draft of the bill which is shared with the competent authorities from local bodies or the private sector to discuss and collect their opinion and observations or publish it on the ministry’s website before the final version of the bill is prepared.

After this stage, the proposed bill is presented to the cabinet for approval and then to the Technical Committee for Legislation in the Ministry of Justice which includes legal experts who study the draft bill from various aspects and make necessary modifications in coordination with the Ministry of Economy. The bill is then sent to the Ministerial Committee for Legislation which includes the Minister of Justice as Chairman and the Minister of State for FNC Affairs, the Minister of Social Affairs, the Minister of Finance, the Minister of Environment and Water, and the Minister of Economy as members. The committee reviews the law and makes necessary amendments under the policy orientation of the country.

After the committee’s review, the bill goes to the cabinet for its review and approval and then to the Federal National Council for further discussion and approval. The Ministry of Presidential Affairs then scrutinizes the final version of the law and publishes it in the Official Gazette.

All in all, the enactment and amendments of laws in the UAE since 2015 and up to date represent positive and crucial steps aimed at enhancing the competitiveness of the UAE in the field of economic development and illustrate to the world its ability to maintain pace with international best practices, thereby stimulating existing companies and attracting further investments into the country.

4.2.3. National Development Strategies in UAE

4.2.3.1. UAE Vision 2021

UAE Vision 2021 was launched by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the closing of a Cabinet meeting in 2010. The Vision aims to make the UAE among the best countries in the world by the Golden Jubilee of the Union. To translate the Vision into reality, its pillars have been mapped into six national priorities which represent the key focus sectors of government action in the coming years.

4.2.3.2. EXPO 2020

In November 2013, the United Arab Emirates was nominated to host the World Expo 2020 in Dubai. It will be held Between October 2020 and April 2021. Bringing together more than 180 nations and an international audience of 25 million visitors, it will be one of the greatest shows on Earth. Estimates indicate that the economic impact of the Expo will be approximately US$19.6 billion between now and 2021. In addition, it is estimated that over 275,000 jobs will be created to cater to the Expo across various sectors including tourism, aviation, and infrastructure.

4.2.3.3. UAE Post-Oil Strategy-2016

Currently, the UAE is underway to launch its roadmap for UAE after oil. The emphasis will be on human capital, knowledge, and innovation.

4.2.3.4. Abu Dhabi Vision 2030

Abu Dhabi Vision 2030 provides a comprehensive plan for the diversification of the emirate’s economy and a significant increase in the non-oil sector’s contribution to the emirate’s gross domestic product (GDP) by the year 2030. The vision identifies two key priority areas for economic development in Abu Dhabi, the first is building a sustainable economy, and the second is ensuring a balanced social and regional economic development approach that brings benefits to all.

4.2.3.5. Dubai Plan 2021

Dubai Plan 2021 describes the future of Dubai through holistic and complementary perspectives, starting with the people and the society that have always been, and always will be, the bedrock of the city. This aspect describes the characteristics that Dubai’s people need to have to deliver on the city’s aspirations in all areas and examines the society needed to support and empower these individuals in achieving their goals. The plan also addresses the urban environment including both natural and built assets and looks at the living experience of the people of Dubai and its visitors because of their interaction with this environment and the economic and social services provided. In addition, the plan also focuses on the economy, which is the city’s development engine and fuel for its march forward. Finally, the plan addresses the government as the custodian of the city’s development in all aspects. These perspectives were divided into six themes, each highlighting a group of strategic developmental aims for Dubai, and together forming the city’s vision for 2021.

4.2.3.6. Value Added Tax (VAT)

The UAE is considering levying Value Added Tax (VAT) from January 2018. The rate of VAT is likely to be 5 percent. It will provide the UAE with a new source of income which will continue to be utilized to provide high-quality public services. It will also help the government move towards its vision of reducing dependence on oil and other hydrocarbons as a source of revenue.

4.2.4. UAE in the Global Economic Reports

4.2.4.1. World Bank Report 2016

According to the World Bank report which measures the performance of 189 countries in “facilitating doing business for investors”, the UAE ranked first in the Arab world for the 3rd year in a row. It was ranked first regionally in the general classification and the number of documented improvements, first globally in the category of the impact of non-payment of taxes, which does not affect business, second globally in the category of the process of construction permits, and fourth globally in the category of electricity delivery.

4.2.4.2. The Global Competitiveness Report 2015-2016

UAE was ranked first regionally and 16th globally, maintaining its lead among the top 20 competitive economies in the world, according to the recent version of the Global Competitiveness Report 2016 issued by the World Economic Forum (Davos) in Switzerland. The report is one of the most important global competitiveness reports, which monitors the annual performance and competitiveness of the economies of countries in terms of strength, weakness, and impact on the quality of life, prosperity, and well-being of people.

4.2.4.3. IMD World Competitiveness Yearbook

According to the IMD World Competitiveness Yearbook, the UAE is ranked 1st regionally and 12th globally amongst 61 countries reviewed for their capability to manage their resources for long-term value creation.

4.2.5. Latest Legislation & Laws

• New corporations act in the United Arab Emirates “Federal Law No.2 of 2015”: After years of speculation regarding an overhaul of commercial companies’ law in the UAE, Federal Law No. 2 of 2015 concerning Commercial Companies (“New CCL”) came into force on 1 July 2015, replacing the Federal Law No. 8 of 1984 concerning Commercial Companies (“Old CCL”). All companies were required to amend their existing memoranda and articles of association to reflect, and comply with, the changes introduced by the New CCL, and any companies that failed to make the requisite amendments by 30 June 2016 are automatically dissolved. The stated objective of the New CCL is to continue the UAE’s development into a global standard market and business environment and raise levels of good corporate governance, protection of shareholders, and promotion of social responsibility of companies. It contains several helpful improvements and modifications to the Old CCL. The following are some features of the New CCL Act of 2015:
  • the recognition of the concept of holding companies, procedures for pledging shares, expert valuation of shares in kind (i.e. non-cash), and the requirement to rotate auditors (for Public Joint Stock Companies) every three years.
  • The new Company Act only applies to companies operating in Dubai and the other Emirates, free zone companies being subject to different requirements. According to this act, any company registered in Dubai must have one or more UAE citizens as partners who will own at least 51% of the share capital in the company. All companies must have a Memorandum of Association which will be drafted in Arabic and legalized by a public notary. Foreign investors opening companies in Dubai may draft the Memorandum in another language provided that they also submit its version in Arabic when supplying the documents with the Trade Register.
  • After enabling this act on the 1st of July, 2015, the companies’ shareholders become able to submit the capital in cash or kind and the companies are required to maintain accounting records which will serve as proof of all the company’s transactions. These records must be kept for at least five years at the company’s registered office in Dubai. Joint stock companies and limited liability companies must appoint independent auditors.
  • Foreign investors are allowed to register limited liability companies and joint stock companies as holding companies in Dubai. Further, a single shareholder is allowed to set up a limited liability company. Also, to register a public joint stock company a minimum share capital of 30 million AED will be required, while for a private joint stock company, a minimum share capital of 5 million AED was established.
• Federal Decree Law No. 2 of 2015 on Combating Discrimination and Hatred.
• Federal Law No. 10 2014 On the Amendment of Certain Provisions of the Civil Procedures Law issued by Federal Law No. 11 of 1992.
• Federal Law No. (7) of 2014 Issued on 20/08/2014 Corresponding to 24 Shawwal 1435 H on Combating Terrorism Offences.
• Federal Law No. 1 of 2013 on amending certain provisions of the Federal Decree-Law No. 2 of 2004 on the establishment of the Emirates Identity Authority.
• Federal Law no. 3 of 2013 on the establishment of Emirates Post Group.
• Federal Law no. 4 of 2013 on Regulating the Profession of Notary Public.

4.3. Human Rights and Cooperation with the International Community

The United Arab Emirates is committed to pursuing its efforts to enhance human rights in keeping with its own cultural identity and special characteristics and in cooperation with international human rights bodies. The Government respects the integrity of every individual residing in the country. Its commitment to guarantee equality and social justice for all citizens is embodied in the Constitution, which also outlines the freedoms and rights of all citizens, prohibits torture, arbitrary arrest and detention, respects civil liberties, including freedom of speech and press, peaceful assembly and association, and the practice of religious beliefs.

Foreign Ministry in his address to the UN General Assembly in September 2012, spelled out the parameters of UAE human rights policy are basic principles in guiding our political orientation and represent lofty values to the citizens of the United Arab Emirates and our society. In this sense, the United Arab Emirates has been and will remain committed to moderation in its approach and accepts other communities as part of a diverse world built on mutual respect. It is these human values that have informed our convictions regarding many issues such as counterterrorism, human rights, the empowerment of women, and coexistence among peoples and communities.

Minister of State for Foreign Affairs made a strong defense of the UAE’s commitment to tolerance; something that is an essential part of the country’s values and beliefs; and is intangible and unquantifiable but critical for stability and progress. Most important of all is respect for people’s freedom to live life as they wish: in short, tolerance. Cultures that defend tolerance have a strong sense of what should not be tolerated: namely, those who preach that people should be persecuted because of their beliefs.

In 2009, the UAE submitted its first report on the status of human rights in the State to the UN Human Rights Council under the Universal Periodic Review process. The UAE’s second report, which outlines the State’s efforts to follow up on the issues raised, was submitted at the end of January 2013, and adopted on the 7 June 2013. The UAE has accepted 100 recommendations, partially accepted, or noted 61 recommendations, and rejected 19 recommendations.

The Government continues to renew its support for the funds of the Office of the United Nations High Commissioner for Human Rights, which will help the Office to implement its program. The State’s contributions to these funds, The UAE announced its intention to several human rights funds such as the Trust Fund on Contemporary Forms of Slavery; the Voluntary Fund for Victims of Torture; the United Nations Voluntary Trust Fund for Victims of Human Trafficking; and funds for UNDP programs.

The United Arab Emirates continues to modernize its laws and practices. Government policy focuses on legislation to uphold and protect fundamental freedoms and the legal rights of individuals, rights of women and children, labor rights, as well as the development of high-quality education and healthcare systems and the assimilation of members of society with special needs and other vulnerable groups into the development process.

Labor Policies: The UAE acknowledges the contribution that foreign workers (almost 4 million of 200 nationalities) make to its economy and has reiterated its commitment to protecting their rights and empowering them to fully benefit from their residency in the country.

Perhaps the single most important achievement to date has been the recognition by countries of origin and destination that improving the developmental outcomes of labor mobility is contingent on the due consideration of the legitimate interests of all its stakeholders: the worker, the employer, and the respective country of origin and country of destination. This has paved the way for increased collaboration in identifying and implementing practical solutions to the problems that impede such outcomes, which, in turn, translate into joint initiatives.

The United Arab Emirates Ministry of Labor has introduced a comprehensive range of protection measures covering both pre- and post-departure needs of workers, beginning in the country of origin (for instance, by shielding workers from illegal recruiters and setting up a contract validation system), continuing after arrival in the country of destination (for instance, through measures curbing abuse and non-payment of wages), and on return and reintegration back home.

The United Arab Emirates signed a technical cooperation agreement with the International Labor Organization (ILO) to provide decent working conditions in the country. The major components of the strategy include the protection of the rights of laborers, the development of national employment policies and monitoring systems, as well as the enhancement of social dialogue. Recent initiatives to protect the labor force have been praised by the ILO, such as the Wage Protection System (WPS) introduced by the Labor Ministry to ensure that workers receive their salaries without delay. Other innovations are aimed at introducing greater flexibility and freedom of movement in the labor market and establishing a balanced contractual relationship between employer and worker. At the same time, access to effective legal remedies in the event of a labor dispute has been improved. In particular, the Ministry has set up a collective labor disputes committee, with representatives of workers and employers, in each labor office. The committees must issue a decision on a dispute within two weeks of referral. Their decisions can be challenged before an appeal court within 30 days of issuance.

The Cabinet’s Decision No.13 of 2009 adopted a manual setting down minimum conditions for workers’ collective housing and related services and stated that, as of 1 September 2009, building permits for workers’ housing must only be issued per the Cabinet Decision. The Decision also affirms that employers are responsible for providing housing in conformity with the conditions laid down in the manual, and every enterprise must comply with the Decision by the end of 2014. Work has begun on the construction of model workers’ cities, of which there are now 21, serving 345,400 workers.

Regarding health issues, the Emirate of Abu Dhabi has devised a comprehensive, compulsory health insurance scheme to cover all workers, including domestic workers. The cost is borne by the employer and the scheme, which is already in effect in Abu Dhabi, will be extended to all parts of the country.

The Domestic Service Workers Bill, approved by Cabinet Decision No. 1/1/1 of 2012, sets down minimum employment conditions for domestic workers.

The UAE’s national strategy to combat human trafficking, based on the five pillars of prevention, protection, prosecution, punishment, and promotion (of international cooperation), is coordinated by the National Committee to Combat Human Trafficking (NCCHT).

Federal Law 51, which was passed in 2006, covers all forms of human trafficking and calls for strong punitive measures, including maximum penalties of life imprisonment for infringement. Regular workshops are held to enhance the skills of law enforcement officials dealing with this crime.

A victim support program includes protection, counseling, and rehabilitation. Police departments and non-government organizations provide shelter and support for human trafficking victims until they can acquire the right documents and many victims are then sent home at the Government’s expense, under the Crime Victim Assistance Programme.

At the international level, the UAE has ratified the UN Convention against Transnational Organized Crime (Palermo Convention) and its Protocol to Prevent, Suppress, and Punish Trafficking in Persons, especially Women and Children (Palermo Protocol) and, as part of the 20-member Group of Friends United Against Human Trafficking, has signed the Declaration on the Global Efforts to Combat Trafficking in Persons. The UAE also presented the UN with the funds to establish the UN.GIFT, the UN Global Initiative to Stop Human Trafficking.

In addition, as part of its efforts to strengthen international cooperation in combating human trafficking and promoting human rights, the Ministry of the Interior signed no fewer than 11 treaties and memorandums of understanding with foreign governments and relevant organizations.

In April 2013, the UAE joined the Bali Process on People Smuggling, Trafficking in Persons, and Related Transnational Crime. One of the main recommendations of the Fifth Ministerial Conference of the Bali Process is the adoption of a program, sponsored by the UN Office on Drugs and Crime, to record information and share data on human trafficking.

Human Rights Conventions to which the UAE is a party:

• Convention against Torture and other Cruel, Inhuman and Degrading Treatment or Punishment
• Convention on the Prevention and Punishment of the Crime of Genocide
• International Convention on the Elimination of All Forms of Racial Discrimination
• International Convention on the Suppression and Punishment of the Crime of Apartheid
• Convention on the Elimination of All Forms of Discrimination against Women
• Convention on the Rights of the Child
• Amendment to Article 43(2) of the Convention on the Rights of the Child
• Convention on the Rights of Persons with Disabilities
• Optional Protocol to the Convention on the Rights of Persons with Disabilities
• UN Convention against Transnational Organized Crime (Palermo Convention) and its Protocol to Prevent, Suppress, and Punish Trafficking in Persons, especially Women and Children (Palermo Protocol)
• Signatory to the Arab Charter on Human Rights
• ILO conventions
• Elimination of forced and compulsory labor – Convention 29
• Elimination of forced and compulsory labor – Convention 105
• Elimination of discrimination in respect of employment and occupation – Convention 111
• Abolition of child labor – Convention 138
• Abolition of child labor – Convention 182.

5. Education and Research

5.1. Education and Youth

The UAE offers a fully-fledged educational system for both boys and girls from primary level to university, and education for the country’s citizens is provided for free through government schools, colleges, and universities. There is also an extensive private education sector which now accounts for around 40 percent of the student population.

Over half a million students are now at school or in college, while several thousand students of both sexes are pursuing courses of higher education abroad at government expense.

Education from primary to secondary level is universal and compulsory and literacy rates are comparable to the norm in developed countries. An adult illiteracy program conducted in association with the UAE Women’s Federation is helping to eradicate illiteracy among the older members of society. There is a strong focus on computer literacy and English language teaching in higher education to equip young Emirates with the necessary skills.

State-funded educational opportunities in the UAE have blossomed since the establishment of the Federation when only a tiny minority of the population had access to formal education. A comprehensive free education system is now available to all students, male and female. At the start of the 1999/2000 academic year, 336,135 students enrolled in over 640 government schools throughout the country. Substantial progress has also taken place in the private sector which accounts for nearly 40 percent of the student population at kindergarten, primary, and secondary levels.

In addition, the UAE’s youth have ready access to higher education, both federally funded and at the many internationally accredited private institutions that are being established throughout the UAE. Generous grants are also available for those wishing to study abroad.

Educational Strategy: Although the UAE has achieved much in the field of education, there is a real awareness that constant updating of policy and continual investment in infrastructure is required to ensure that graduates are properly equipped to enter the workforce and assist in the country’s development. To this end, the Ministry of Education has released a draft policy document outlining a strategy for educational development in the UAE up to the year 2020 based on several five-year plans. The strategy aims to introduce the latest information technology at all levels including a computer for every ten students at kindergarten, every five students at primary school, every two students at preparatory school, and a computer for every student at secondary school. The primary focus of attention will be on the needs of students, especially through the promotion of self-learning and continuous education programs. There will also be training programs for teachers since surveys have shown that although the majority of students can use computers and the Internet, their teachers are less familiar with this technology.

Cooperation between the public and private sectors at this stage in the country’s progress is considered to be essential and so the draft policy document features the establishment of a council for educational development, comprising senior education specialists, government officials, and businessmen to assist in raising finance for infrastructure and information technology projects. It also envisages the setting up of a special fund comprising governmental and private bodies.

The Emiratization of teaching staff is scheduled to reach 90 percent by the year 2020, a necessary development if the UAE’s Islamic traditions and principles are to be safeguarded.

Secondary School Certificate: Women in the UAE have enthusiastically embraced the educational opportunities provided by them in recent years. (For more information see the section on Women.) This was evident yet again in the General Secondary School Certificate results in 1999 where female students outshone their male counterparts for the third consecutive year. The results showed a good overall performance by girls in both the science and literature subject groups. Fifteen girls were in the top 10 places in the literature group, while 16 girls and 10 boys shared the top 10 positions in the science group. The pass percentage of government schools was 96.2 percent in science and 82.6 percent in literature while private schools’ pass percentage was 84 percent in science and 77.9 percent in literature.

5.2. Higher Education and Research

More than 80 percent of national students who graduated from secondary school in 1999 took up a place in higher education in September 1999. According to the National Admissions and Placement Office (NAPO), 90 percent of female students and 73 percent of their male counterparts commenced courses at the federally funded Higher Colleges of Technology (HCT), established in 1987, Zayed University for women, established in 1998, and UAE University at Al Ain, established in 1977.

A total of 16,000 students, including 4,000 recruits, commenced the new academic year 1999/2000 at Al Ain University, whilst 1,692 students enrolled at Zayed University, where the entire educational process is computer-based, 742 at the Abu Dhabi campus and 950 at the Dubai campus.

In 1999, 4,944 students were granted admission to the 11 constituent colleges of the HCT network, compared with 4,154 at the beginning of the 1998–1999 academic year. Of these admissions, 1,675 were male and 3,229 were female, the latter figure being nearly double that for 1998.

Higher Colleges of Technology: The courses provided by the HCT are designed to prepare nationals for professional and technological careers in both government and private sectors. Since their foundation, the colleges have grown dramatically, with staff and students increasing by about 30 percent each year. At present over 10,000 students are taking advantage of the educational opportunities offered by HCTs in Abu Dhabi, Dubai, Sharjah, Al Ain, and Ras al-Khaimah. HCT courses are grouped under five main programme headings: engineering, technology, health science, communication technology, and business. During the period under review, Sheikh Zayed issued Federal Law No. 17 of 1998 dealing with the re-organization of the HCTs. The law stated that these institutions should henceforth be administered under an independent central body which will have its headquarters in Abu Dhabi but with branches in other towns.

Universities, Institutions, and Research & Community Service Centers:

• Abu Dhabi University – Contains colleges of arts and science, engineering and computer science, business administration, and an English language institute that offers language foundation programs.
• Ajman University of Science and Technology – Network of universities in the Emirates with campuses in Ajman, Al Ain, and Fujairah. Includes profile, registration, faculties, alumni, and contact details.
• Ittihad University – Unaccredited University in Ras Al Khaimah offering BA programs in engineering, computer studies, business information systems, teaching and translating English.
• Ras Al Khaimah Medical and Health Sciences University – Established by the Ras Al Khaimah Human Development Foundation, offering BA degrees in medicine and surgery, dental surgery, pharmacology, and nursing.
• United Arab Emirates University – Based in Al Ain, contains colleges of humanities and social sciences, education, business and economics, shari’ah and law, information technology, and engineering.
• Zayed University – Open to national women of the Emirates, offering BA and MA programs in business sciences, information technology, and education, with campuses in Abu Dhabi and Dubai.
• College of Business and Economics – United Arab Emirates University – Offers MBA, and BA degrees in accounting, economics, banking and finance, marketing, business administration, management information systems, and statistics.
• United Arab Emirates University – Offers undergraduate and postgraduate programs in chemical, civil, mechanical, architectural, and petroleum engineering, as well as other engineering-related courses.
• Emirates Center for Strategic Studies is and Research–Independent research institution dedicated to the promotion of professional research and educational excellence in the UAE and the Gulf Area; the site also has a general introduction to the UAE.
• International Center for Biosaline Agriculture – Applied research and development center located in Dubai; its mission is to develop and promote the use of sustainable agricultural systems that use saline water to grow crops.
• CSEM-UAE Innovation Center – Centre that works on technologies in environmental applications (energy and water), system engineering & mechatronics; a joint venture between the Government of Ras Al Khaimah & the Swiss Research Center CSEM; based in Ras Al Khaimah.
• Dubai Harvard Foundation for Medical Research – The Foundation was created to help drive a resurgence in scientific inquiry and discovery in the Middle East; its initiatives include the Harvard Medical School Dubai Center Institute for Postgraduate Education and Research.
• Gulf Research Center (GRC) – Research institute in Dubai, founded by Abdulaziz Sager to promote studies on Gulf Cooperation Council (GCC) countries and Gulf issues; conducts workshops, publishes data on GCC, and offers consultancy, and training to students & employees.
• Center of Excellence for Applied Research and Training – Centre of Excellence for Applied Research and Training, Higher Colleges of Technology, Abu Dhabi, and UAE. Online courses available.
• Emirates Institute of Banking and Financial Studies (EIBFS) – Offers banking and financial services, studies, and news in Dubai, UAE.
• Academia UAE – Academic institute offering education, vocational, training, and transfer of technology in UAE. Partners, activities, contact details and more.
• Lotus Educational Institute, UAE – Educational institute located at Dubai Knowledge Village, UAE.
• Two Four 54 – Tadreeb – Media and content training academy providing high-level courses across a range of technical and managerial disciplines in UAE and MENA region.
• Zabeel International Institute of Management & Technology, Dubai, UAE – Educational institute in Dubai, UAE. Provides management and technology courses for executives.

Financial Institutes: The Emirates Center for Strategic Studies and Research is the premier think tank in the UAE. The ECSSR is an independent research institution that serves as a focal point for scholarship on political, economic, and social issues pertinent to the UAE, the Gulf, and the greater Middle East through the sponsorship of empirical research and scientific studies conducted by scholars from around the globe. The ECSSR’s Department of Economic and Social Studies conducts research on economics and society to provide recommendations that facilitate future policies for the UAE. It also analyzes economic transformations on the local, regional, and international levels that may impact the security and stability of the UAE.

The Emirates Institute for Banking and Financial Studies (EIBFS) offers nearly 200 training programs each year for the burgeoning banking sector. It also publishes a monthly magazine and operates a Research and Studies Department, founded in 2002.

5.3. Quick Research Links

Legal and Report Links:

• UAE Constitution (Arabic)
• UAE Constitution (English)
• Lawyers of UAE
• Ministry of Justice, UAE (Arabic | English)
• The Abu Dhabi Government Gateway (English | Arabic)
• Country Data
• Emirates.org
• Library of CongressMinistry of Justice
• Ministry of JusticeWikipedia
• Jurispedia CIA-The World Factbook-UAE
• Zayed University
• Federal Authority of Identity and Citizenship Emirates Voyage
• BBC

UNDP

Government Links:

• UAE president
• UAE cabinet Federal National Council
• UAE government portal
• Ministry of Presidential Affairs
• International Cooperation
• Ministry of Education
• Ministry of Infrastructure Development
• Ministry of DefenseMinistry of Interior
• Ministry of Finance
• Ministry of Cabinet Affairs and the Future
• Ministry of EnergyMinistry of Economy
• Ministry of Community DevelopmentMinistry of Health and Prevention
• Ministry of Culture and Knowledge DevelopmentMinistry of State for Federal National Council Affairs
• Ministry of Human Resources & Emiratisation
• Ministry of Justice
• Ministry of Climate Change and Environment
• The United Arab Emirates’ Government portalThe Federal Competitiveness and Statistics Centre (FCSC)
• The Federal Tax Authority (FTA)

Federal Government Entities:

• Human Resources AuthorityEmirates Real Estate Corporation
• General Pensions and Social Security Authority
• General Secretariat of Municipalities
• Federal Competitiveness and Statistics Authority
• National Media CouncilCentral Bank of the UAE
• Federal Customs Authority
• Federal Environmental Agency- Abu Dhabi
• Federal Transport Authority – Land and MaritimeGeneral Authority of Islamic Affairs and Endowment (Awqaf)
• General Authority of Youth and Sports WelfareGeneral Civil Aviation Authority
• Telecommunications Regulatory Authority
• Sheikh Zayed Housing Programme
• Zakat Fund
• Emirates Post Group
• Institute of Training and Judicial Studies (Ministry of Justice)
• Emirates Authority for Standardization and Metrology
• Emirates Identity Authority
• Red Crescent for the UAE
• General Pensions and Social Security Authority

Securities and Commodities Authority

Some Local Government Links:

• Duty-Free
• Dubai Airports Cargo and Logistics
• Dubai CustomsDubai Chamber of Commerce
• Roads and Transport Authority
• Dubai Police
• Visit Dubai
• Dubai Dept of Economic Development
• Dubai Awqaf & Islamic Affairs
• General Directorate of Residency and Foreigners Affairs-DubaiSheikh Hamdan bin Rashid Al Maktoum Award for Medical Services: Dubai Media City
• Ajman Chamber of CommerceAjman Free Zone
• Ajman TVAjman University

Business and Others Links:

• Union Group
• Alliot GroupEmirates NBD Bank
• Abu Dhabi Chamber
• UAE Business Information Emirates Institute For Banking And Financial Studies (EIBFS) Petroleum Institute
• The Emirates Academy of Hospitality Management

UAE Media Links:

• Gulf News
• Gulf Today
• Khaleej Times
• Al Bayan
• Al Ittihad

Emirates News Agency (WAM) Universities:

• U.A.E. University
• University Wollongong In DubaiAjman University
• Al Ghurair University
• American University in Dubai
• American University of Sharjah
• University of Dubai
• Heriot-Watt University Dubai Campus
• University Wollongong
• Zayed University

Colleges:

• Falcon College of Hotel Management and TourismUAE Police College
• Emirates Aviation College
• Dubai College
• Dubai Police Academy Gulf Medical College Ajman
• HCT, Higher Colleges of Technology
• HCT, Sharjah Women’s College Hct, Dubai Men’s College
• Hct, Al Ain Men’s College
• Hct, Abu Dhabi Men’s College
• Hct, Abu Dhabi Women’s College
• Hct, Dubai Women’s College
• Hct, Al Ain Women’s College Hct, Fujairah Women’s College Hct, Ras Al Khaimah Men’s College
• Hct, Ras Al Khaimah Women’s College
• Hct, Sharjah Men’s College
• Skyline University College

UAE Education Centre:

• Best Schools & Universities in United Arab Emirates 2017/2018

Contact Information for UAE Schools:

• Al Worood Private School
• Al-Shomoo Private School
• Louis Massignon School Abu-Dhabi International Private School (AIS)
• Al Diyafah School
• Al Khaleej National School
• Al Ma’Ali School
• Al Ma’Arifa Private School Al Mawakeb School
• Al-Mizhar American Academy for Girls
• Al Murooj Scientific Private School
• American School of Dubai Dubai International Academy
• Dubai British School
• Dubai Scholars
• Abu Dhabi International (Pvt) School
• Kings Dubai
• Emirates International School
• German International School Dubai
• Greenfield Community School Gulf Arabic Program
• Ibn Seena English High School
• Jumeirah Primary School
• New Indian Model School (Nims)
• Raha International School
• Sharjah English School
• Scholars International Academy
• Sheikh Zayed Private Academy School for Girls
• The Children’s Garden The American Community School
• The Modern High School
• The Oxford School

Uptown School

Business links

• Union Investment
• Alliot Group
• Emirates NBD
• Emirates Shipping Line
• Abu Dhabi Online Commercial Directory
• UAE General Business InformationUAE Business Directory

International Reports

• World Development Report 2017: Governance and the Law
• World Bank Development Report 2016.
• World Economic Forum Global Competitiveness Report 2016
• IMD World Competitiveness Yearbook
• AHELOFS Report “OECD”

WJP Rule of Law Index 2023

Others

• Abu Dhabi Vision 2030
• Emirates News Agency WAM
• Dubai plan 2021
• UAE vision 2021EXPO 2020 Dubai
• Emirates Institute for Banking and Financial Studies (EIBFS)
• Petroleum Institute
• The Emirates Academy of Hospitality Management The International College of Law and Business Administration