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UAE News developments

Dubai: Remote Marine Vessel Licence Renewal Service

  • 30/05/202530/05/2025
  • by Tanya Jain

Dubai Maritime Authority, part of the Ports, Customs and Free Zone Corporation, has launched a Remote Technical Inspection Service to facilitate the renewal of licences for pleasure marine vessels up to 12 meters, pleasure watercraft, and foreign-registered visiting vessels.

This initiative, issued by CEO of the Dubai Maritime Authority, is part of the Authority’s digital transformation strategy, following directives from His Highness Sheikh to simplify government services and reduce bureaucracy. Vessel owners and operators in Dubai, will have to use the new remote service for licence renewals. The service allows customers to book inspections online, complete necessary checklists, and conduct virtual inspections with an inspector, ensuring compliance with safety and operational standards.

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UAE: Banks to Increase Minimum Balance Requirement News developments

UAE: Banks to Increase Minimum Balance Requirement

  • 22/05/202522/05/2025
  • by Tanya Jain

Khaleej Times, 20 May 2025: Several banks in the UAE have announced an increase in the minimum balance requirement from AED 3,000 to AED 5,000 as per the Central Bank’s personal loan regulations.

Customers who do not maintain the new minimum balance will incur a monthly fee of AED 25, unless they hold a credit card or have personal financing with the bank. The decision aims to enhance banks’ deposit levels and cover the costs of maintaining customer accounts.

Customers with a total balance of AED 20,000 or more, or a monthly salary transfer of AED 15,000 or more, will be exempt. Those with salary transfers between AED 5,000 and AED 14,999 who also have a credit card, overdraft facility, or loan will also be exempt.

Finance experts have raised concerns about the financial disadvantage to low-income workers, urging banks to reconsider the increase or offer varied minimum balances based on salary ranges. Alternative options, such as using money exchanges or financial institutions for salary disbursement, are suggested to mitigate the impact on affected workers.

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United Arab Emirates News developments

Fujairah: Police Announce New Traffic Plan for Pedestrian Safety

  • 22/05/202522/05/2025
  • by Tanya Jain

Khaleej Times, 20 May 2025: The Fujairah Police have unveiled a comprehensive traffic plan aimed at improving pedestrian safety across the emirate.

This initiative involves the establishment of new pedestrian crossings and the redesign of existing hazardous ones. The decision targets both drivers and pedestrians to reduce run-over accidents and promote safe crossing practices.

The plan aligns with Article 89 of Federal Decree-Law No. 14/2024 on the Traffic and Road Law, which penalises jaywalking with a fine of 400 AED. It forms part of a broader operational strategy for 2025, including a campaign titled “Pedestrians Have the Right to Cross Safely.” This campaign aims to lower mortality and injury rates by encouraging the use of designated crossings and discouraging risky behaviours.

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UAE News developments

Dubai: Enforces New Compliance Rules for Digital Asset Firms

  • 21/05/202522/05/2025
  • by Tanya Jain

AInvest, 19 May 2025: Dubai’s Virtual Assets Regulatory Authority (VARA) issued a directive requiring licensed digital asset companies to comply with updated activity-based Rulebooks by 19 June 2025 following the release of Version 2.0 on 19 May 2025.

This update aims to strengthen market integrity and risk oversight by refining controls around margin trading and token distribution services, harmonising compliance requirements, and clarifying definitions for collateral wallet arrangements. It impacts all virtual asset service providers (VASPs) operating within Dubai, obliging them to align with the new rules after a 30-day transition period. VARA has emphasised the importance of this transition period to facilitate adaptation to the updated regulations.

The updated Rulebooks will enhance supervisory mechanisms across various regulated activities, including advisory, broker-dealer, custody, exchange, lending and borrowing, virtual asset management and investment, and VA transfer and settlement services. Key operational terms such as “client assets,” “qualified custodians,” and “collateral requirements” have been defined to ensure consistency and reduce ambiguity in compliance.

In margin trading, VARA tightened leverage thresholds and mandated clearer collateralisation standards to mitigate risks associated with market downturns. The Rulebooks also introduced new token distribution regulations, outlining licensing prerequisites, investor protections, and marketing restrictions, particularly for retail-facing offers.

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UAE: Federal Tax Authority Clarifies Corporate Tax Rules for REIT Investors News developments

UAE: Federal Tax Authority Clarifies Corporate Tax Rules for REIT Investors

  • 15/05/202515/05/2025
  • by Hannah Gutang

The Finance World, 7 May 2025: The UAE Federal Tax Authority (FTA) issued a clarification CTP005 on the Taxation of investors in a Real Estate Investment Trust (REIT) that is exempt from Corporate Tax as a Qualifying Investment Fund

The clarification covers the income that will be taxed in the hands of juridical persons that are investors in a REIT and the relevant Tax Period in which the income will be taxed for such investors. It also provides information on the compliance obligations of the REIT and the investors.

A REIT that meets the conditions of Article 10(1) of Federal Decree-Law No. 47/20221 and Article 4(1) of Cabinet Decision No. 34/20252 can make an application to the Federal Tax Authority to be exempt from Corporate Tax as a Qualifying Investment Fund. Where a REIT is exempt from Corporate Tax, the Taxable Income of a juridical person that is an investor in the REIT is adjusted to include 80% of the prorated Immovable Property Income of the REIT. However, if the REIT makes a distribution within nine months from the end of its Financial Year and the investor has not received the dividend distribution due to the disposal of its entire Ownership Interest in the REIT, the investor will not be subject to Corporate Tax on the Immovable Property Income of the REIT.

A REIT must provide specific information in respect of the period to which the distribution relates, or the relevant Financial Year of the REIT, as the case may be. This includes the amount of Immovable Property Income of the REIT; whether the REIT is a distributing fund for such Financial Year; and the amount of tax depreciation deduction for each investment property.; any disposals of investment property for which a tax depreciation deduction was previously claimed. A REIT is not required to provide investors with information that is not relevant to the investor’s Corporate Tax obligations or which the investor has an obligation to keep in their own records, such as the investor’s own acquisition cost or disposal proceeds of an Ownership Interest in the REIT.

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UAE News developments

Dubai: Smart Building Policy

  • 15/05/202515/05/2025
  • by Hannah Gutang

Gulf News, 9 May 2025: Sheikh Hamdan has approved a smart building policy design to reduce consumption of water and energy.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of the Executive Council, has approved the new policy measures in alignment with the objectives of the Dubai Social Agenda 33 and the Dubai Economic Agenda D33. The policy is being led by the Dubai Municipality. It outlines standards for smart buildings that use renewable energy, intelligent water networks, smart parking, automated climate control, and real-time monitoring systems.

It aims to reduce power consumption in buildings by 25%, water use by 15%, and operational costs by 20%,

At present, adoption of the policy is purely voluntary in new buildings, but it will be backed up by initiatives to encourage adoption by investors and developers in due course.

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UAE: Securities Authority Imposes Disciplinary Actions for Market Violations News developments

UAE: Securities Authority Imposes Disciplinary Actions for Market Violations

  • 08/05/202508/05/2025
  • by Tanya Jain

Mubasher, 6 May 2025: The UAE Securities and Commodities Authority (SCA) has issued a financial penalty of AED 100,000 to an investor for engaging in pre-emptive trading activities.

The relevant regulation governs trading, clearing, settlement, transfer of ownership, and custody of securities.

In a separate disciplinary action, the SCA revoked a preliminary approval of an employee holding the position of “Promotion Manager” at a licensed company. The revocation followed the employee’s proven misconduct during an examination on the UAE’s financial systems and regulations.

For full story, click here.

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UAE News developments

Dubai: Public Prosecution Launches ‘Reconciliation is Better’ Initiative

  • 08/05/202508/05/2025
  • by Tanya Jain

Gulf News, 30 April 2025: The “Reconciliation is Better” initiative has been launched by Dubai Public Prosecution, as part of a comprehensive plan to enhance dispute resolution through amicable settlements.

This initiative, aligned with international best practices, aims to establish a global benchmark for judicial excellence and support the objectives of the Dubai Plan 2030. It provides a practical alternative to traditional legal proceedings, promoting a culture of tolerance and social harmony, which are central to Dubai’s leadership vision of a cohesive society.

The decision impacts parties involved in legal disputes by offering them a pathway to resolve issues amicably. It allows prosecutors to guide willing parties towards fair and lawful settlements, reducing the reliance on lengthy legal proceedings.

By streamlining the process, the initiative will conserve resources and significantly reduced legal costs, reinforcing Dubai’s commitment to providing exceptional services and quality of life.

The law prohibits concealing infections or spreading them, whether intentionally or unintentionally, and requires individuals to comply with measures to prevent the spread of disease, following guidelines issued by relevant authorities and healthcare providers.

It has established a comprehensive framework to promote public health and safeguard community and environmental well-being. It outlines a focus on disease prevention, healthcare, food and product safety and sustainable efforts to improve overall quality of life.

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UAE: FTA Clarified VAT Treatment of Barter Transactions News developments

UAE: FTA Clarified VAT Treatment of Barter Transactions

  • 01/05/202501/05/2025
  • by Tanya Jain

The Federal Tax Authority has issued a public clarification on the VAT treatment of barter transactions in the UAE.

The announcement clarified that, with barter transactions, the value of a supply is determined by combining any monetary consideration received with the market value of the non-monetary component, after excluding the tax element. This clarification specifically relates to taxable persons and VAT registrants – including social media influencers, restaurants, farmers, accounting firms, and furniture dealers – and has imposed an obligation on each party to issue tax invoices and account for VAT on both monetary and non-monetary components in accordance with the prescribed valuation rules. The clarification referenced Federal Decree-Law No. 8/2017 on Value Added Tax and Cabinet Decision No. 52/2017. This reinforces the way the current legal framework operates.

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UAE News developments

Dubai: New Public Health Law Impacts Travellers

  • 01/05/202501/05/2025
  • by Tanya Jain

Gulf News, 25 April 2025: Travellers entering Dubai are to be required to follow specific health protocols as a result of a new health law.

Dubai Law No. 5/2025 on Public Health outlines a wide-ranging framework to improve community health, reduce disease transmission, and align public health practices with international standards.

It introduces strict obligations for travellers, individuals, and healthcare providers, while also clarifying the roles of government entities in safeguarding health and the environment.

Travellers must adhere to official health protocols, provide requested information at Dubai’s entry points and report any suspected or confirmed communicable diseases.

Anyone who is infected or suspected of having a communicable disease must avoid contact that could spread their illness. The law states individuals must refrain from travelling or moving, except to healthcare facilities, without the approval of the Dubai Health Authority.

Those who are travelling while ill, must observe hygiene measures such as wearing masks and maintaining physical distancing in line with approved guidelines.

The law prohibits concealing infections or spreading them, whether intentionally or unintentionally, and requires individuals to comply with measures to prevent the spread of disease, following guidelines issued by relevant authorities and healthcare providers.

It has established a comprehensive framework to promote public health and safeguard community and environmental well-being. It outlines a focus on disease prevention, healthcare, food and product safety and sustainable efforts to improve overall quality of life.

It aims to minimise any health risks affecting individuals and communities in Dubai through precautionary measures and evidence-based practices that align with both local and international health regulations.

It also promotes greater coordination and collaboration at all levels to strengthen preparedness and response to any public health challenges in the emirate. and aims to increase public awareness of health risks and prevention methods by fostering a sustainable environment that attracts investment.

In addition, it has also formally defined the roles and responsibilities of relevant authorities in managing communicable diseases.

These authorities include local government entities tasked with overseeing public health in Dubai, such as Dubai Health Authority, Dubai Municipality, the Dubai Environment and Climate Change Authority, the Dubai Academic Health Corporation and the Dubai Corporation for Ambulance Services.

The law has outlined the responsibilities of the relevant authorities in food safety, specified obligations for food-related establishments and set out some rules for consumer product activities.

It has also detailed responsibilities in areas such as built environmental health, labour accommodations, pest control and the Dubai Health Authority’s role in managing health risks, emergencies and crises.

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