The United Arab Emirates has ushered in 2025 with a series of transformative laws and regulations aimed at enhancing various aspects of life in the country. From corporate governance to environmental protection, these new measures reflect the nation’s commitment to sustainable development and social progress.
Corporate governance and gender equality
In a landmark move toward gender diversity in corporate leadership, the UAE’s Ministry of Economy has mandated that all private joint-stock companies must appoint at least one woman to their boards of directors.
According to Mahmoud Kreidie, a UAE-based lawyer at law firm BSA, “This directive builds upon the successful 2021 mandate for publicly listed companies, which saw female board representation increase dramatically from 29 seats in 2020 to 77 seats by 2022.”
The measure, which takes effect this month following the conclusion of current board terms, aligns with the UAE Gender Balance Council’s ambitious target of achieving 30 per cent female representation in leadership positions by the end of 2025.
“The new measures not only enhance board diversity but also align with global corporate governance best practices, positioning UAE companies more competitively in the international market,” Kreidie adds.
Environmental protection and sustainability
The nation is taking decisive action against plastic pollution with a comprehensive ban on single-use plastics.
The initiative, which will be fully enforced this year, targets items such as plastic bags, cutlery, straws, and Styrofoam products. Businesses found in violation face substantial penalties ranging from AED 500 to AED 50,000, depending on the severity and frequency of infractions.
Dubai has already implemented the first phase of its plastic ban, with Styrofoam products and single-use bags now prohibited.
The emirate plans to extend these restrictions to include plastic cups, lids, cutlery, and food containers by 2026.
“The government’s approach combines enforcement with incentivisation, offering tax rebates and grants to encourage adoption of eco-friendly alternatives. This reflects a balanced strategy to achieve environmental goals while supporting business transition,” Kreidie noted.
Traffic and transport reforms
A significant overhaul of the Federal Traffic Law will take effect from March 29, 2025. The reforms include lowering the minimum driving age to 17 years and introducing stricter regulations for noise pollution and pedestrian safety.
Kreidie highlighted that “the new law addresses modern transportation challenges while prioritising public safety through enhanced penalties for serious violations.”
In a major development for Dubai’s transportation infrastructure, new Salik toll charges will be implemented, with peak hour rates increasing to AED 6 and off-peak rates remaining at AED 4. The system will offer free passage between 1 AM and 6 AM, demonstrating a flexible approach to traffic management.
Key changes include:
- A comprehensive ban on vehicles emitting excessive noise
- Restrictions on honking within city limits
- New regulations prohibiting pedestrian crossing on roads with speed limits exceeding 80 km/h
- Enhanced penalties for driving under the influence and hit-and-run incidents
- New parking charges with premium (AED 6 per hour) and standard (AED 4 per hour) categories during peak hours
Healthcare and insurance reform
Basic health insurance has become mandatory for all private sector and domestic workers in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah from January 1.
The basic package, priced at AED 320 per year, is valid for two years, with the second-year premium refundable if the visa is cancelled.
Emiratisation targets and workforce development
The UAE continues its push for increased local representation in the private sector. Companies with 50 or more employees must achieve a 7 per cent Emiratisation rate by June 2025, increasing to 8 per cent by year-end. Smaller businesses with 20-49 employees across 14 sectors are required to maintain at least one Emirati in a skilled position.
“These measures reflect the UAE’s strategic commitment to fostering local talent and creating a sustainable workforce aligned with the country’s long-term vision,” Kreidie noted. Non-compliant companies face fines of AED 96,000 per unappointed Emirati worker, with penalties being enforced from January 1, 2025.
Real estate and rental market changes
The Dubai Land Department has launched a new Smart Rental Index, implementing a comprehensive building classification system for determining rental values.
“This initiative enhances transparency, builds trust, and provides stakeholders with a balanced and sustainable environment in Dubai’s real estate sector,” explained Kreidie.
The market is expected to see significant movement, with projections indicating an 18 per cent increase in short-term rentals and 13 per cent for long-term leases.
Urban mobility innovation
The UAE is preparing to introduce air taxis this year.
“A comprehensive insurance framework must be established to address potential liabilities for operators, manufacturers, passengers, and third parties,” Kreidie explained.
“Clear guidelines for low-altitude airspace management are crucial to prevent conflicts with existing aviation activities.”
The government is currently developing stringent training programs and licensing requirements for pilots and operators, along with clear guidelines for low-altitude airspace management. These regulations will align with the UAE’s sustainability goals while ensuring public safety.
Personal status law reform
The UAE has introduced Federal Decree-Law No. 41 of 2024, a comprehensive update to personal status regulations that will come into effect from April 15, 2025. The new law brings significant changes to family matters, marriage, divorce, and child custody regulations for both citizens and residents.
Key reforms include extending mothers’ custody rights until children turn 18, allowing children aged 15 and above to choose their custodian, and introducing new marriage regulations that require judicial approval for marriages with an age gap of 30 years or more. The law also provides greater flexibility for expatriate Muslims, who can now choose to apply their home country’s laws for personal matters.
The legislation introduces stricter penalties, with fines ranging from AED 5,000 to AED 100,000 for offenses such as child abuse, neglect, or unauthorised travel with children. Additionally, the law modernises travel rights, allowing either parent to travel alone with their child for up to 60 days per year, subject to certain conditions.
Natural resources and taxation
Sharjah has pioneered a new approach to resource management with its recently approved corporate tax law on extractive and non-extractive natural resources.
The legislation, endorsed by the Sharjah Consultative Council on January 12, 2025, aims to regulate taxation for companies involved in natural resource activities while promoting environmental stewardship.
“These comprehensive reforms reflect the UAE’s forward-thinking approach to governance, ensuring the nation remains at the forefront of global development while maintaining its cultural values and environmental responsibilities.”
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