Updated UAE Laws and Reforms to Shape National Agenda in 2025

The UAE is set to implement a range of significant reforms starting from January 2025 that will shape the country’s future, including new laws aimed at enhancing healthcare, promoting environmental sustainability, and boosting local employment.

Nationwide Health Insurance: Starting January 1

One of the major reforms taking effect from January 1 is the introduction of basic health insurance for all private sector and domestic workers who do not already have coverage. This mandate, which extends the existing health insurance provision in Abu Dhabi and Dubai to employees in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah, will ensure that more workers across the country have access to affordable healthcare. Employers will be required to purchase this health insurance when issuing or renewing residency permits, with a cost of Dh320 ($87) per year. The policy will cover individuals up to the age of 64 and is valid for two years, with the second-year premium refundable if the visa is canceled. No waiting period will be enforced for workers with chronic illnesses.

Dubai Extends Plastic Ban: Starting January 1

Dubai is intensifying its commitment to sustainability by expanding its plastic waste reduction initiative. After banning single-use plastic bags in June 2024, the emirate will now introduce a ban on Styrofoam containers, cups, plastic stirrers, straws, table covers, and cotton buds with plastic stems starting January 1. In 2026, single-use plastic cups, lids, cutlery, food containers, and plates will also be banned. This initiative aligns with a nationwide effort to reduce plastic waste and promote recycling. Abu Dhabi has already cut over 360 million single-use plastic bags since its own ban in 2022, furthering the UAE’s environmental goals.

15% Tax on Large Multinational Companies: Starting January 1

The UAE will implement a 15% minimum tax on the profits of large multinational enterprises (MNEs) starting from January 1, 2025. This change follows a shake-up in the country’s corporate tax laws and will apply to MNEs with consolidated global revenues of €750 million ($793 million) or more. The tax rate is a significant increase from the current 9% corporate tax, which was introduced in mid-2023. This reform is designed to align the UAE with global tax standards while promoting fairness in the taxation of large companies operating in the country.

Raising Emiratisation Goals: Starting January 1

In a bid to boost employment for Emiratis, the UAE government is raising its Emiratisation targets. From January 1, companies with 50 or more employees will be required to ensure 7% of their workforce is Emirati by mid-2025. Smaller companies with 20 to 49 employees in 14 sectors will be required to hire at least one Emirati by the end of 2024. Failure to meet these targets will result in fines of Dh96,000 for each unappointed Emirati worker. This initiative is part of a larger effort to have 10% of the skilled private sector workforce comprised of Emiratis by the end of 2026.

Utility Bills Rise: Starting January

Dubai residents will see a rise in sewerage fees for the first time in a decade. The new charges will start at 1.5 fils per gallon, rising to 2 fils in 2026 and 2.8 fils in 2027. This increase comes in response to the city’s growing population and the need for continued infrastructure development. While the cost of water remains lower than many global cities, the rise in fees reflects Dubai’s ongoing economic growth.

New Salik Charges: Starting Late January

Dubai will also introduce higher charges for crossing the city’s Salik toll gates, with the fee increasing from Dh4 to Dh6 during peak hours, between 6 am to 10 am and 4 pm to 8 pm. Off-peak charges will remain Dh4, while the toll will be free during the late-night hours between 1 am and 6 am. The increase is part of a strategy to improve traffic flow in the emirate, following the opening of two new Salik gates.

Genetic Testing for Emirati Couples: Starting Early January

Beginning in early January, all Emirati couples will be required to undergo mandatory premarital genetic testing. This initiative aims to promote early detection of genetic diseases and enable informed family planning decisions. The program, which was first introduced in Abu Dhabi in October 2024, will now be extended across the entire country. The move is particularly important due to the higher prevalence of genetic disorders within the Emirati population, and it aligns with the UAE’s ongoing efforts to improve public health outcomes.

These new laws and reforms are poised to significantly impact various sectors, contributing to the UAE’s ambitious agenda for 2025 and beyond.

Source: The National News, UAE