UAE: Bankruptcy Court Created

Khaleej Times, 24 July 2025: The Ministry of Justice announced a decision regarding the organisation of the Bankruptcy Court, which will be headquartered at the Abu Dhabi Federal Court of First Instance.

The court will be responsible for adjudicating all applications and disputes arising from the implementation of the provisions of the Federal Decree-Law on Financial Reorganisation and Bankruptcy (Federal Decree-Law No. 51/2023). The Federal Judiciary Council will also be able to establish one or more branches of the court in any other emirate, subordinate to the main court, to handle these applications and disputes.

The court shall consist of a chief judge with a rank no lower than that of an appellate judge, and several specialised judges appointed by the Federal Judiciary Council.

A bankruptcy division will also be created within the court, headed by a judge of at least appellate rank, which will be responsible for tasks, including receiving applications, objections, and grievances, registering applications, among others.

The court will be able to engage professionals with relevant experience and expertise to perform various tasks such as managing the debtor’s funds and business operations, implementing precautionary measures, expediting procedures, meeting with creditors, and hearing the debtor or their representative on matters related to debts, assets, or operations.

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UAE: Agreement with US on Patent Procedures

Khaleej Times, 20 July 2025: The UAE and the US signed a statement that aims to accelerate patent-granting procedures in the UAE

The agreement was signed at the 66th Assemblies of the Member States of the World Intellectual Property Organisation (WIPO) in Geneva, by the Ministry of Economy and Tourism and the US Patent and Trademark Office (USPTO).

The Joint Statement of Intent aims to launch a bilateral cooperation programme which provides collaborative mechanisms to recognise positive examination results issued by the USPTO for corresponding Emirati patent applications.

This will be implemented in accordance with applicable national laws.

The focus is on industrial property rights and the development of patent registration procedures that provide flexible and efficient services which support an innovation-driven and entrepreneurial environment.

This partnership with the US side is part of a new push to accelerate patent issuance by strengthening international cooperation and adopting advanced operational models.

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UAE: Market Regulator Introduces New Goodwill Valuation Rules for Listed Companies

Gulf News, 14 July 2025: The UAE Securities & Commodities Authority (SCA) has approved new regulations governing how listed companies must account for goodwill in mergers and acquisitions.

The regulatory framework establishes specific valuation principles for goodwill—the premium paid above a company’s net asset value during an acquisition. Under the rules, goodwill can only be recognised when a company is acquired and cannot be created internally.

The new regulations, which classify goodwill as an intangible asset, will affect all publicly listed UAE companies involved in mergers and acquisitions. Several companies, including Gulf Navigation, Multiple Group, and Emirates Driving, have recently been active in corporate acquisitions.

This measure follows recent SCA regulatory initiatives, including new frameworks for social media financial influencers and robo-adviser funds. The authority’s board has also reviewed the implementation of its recently launched financial influencer registration programme.

The regulations require boards of directors, audit committees, and external auditors to follow specific guidelines for goodwill valuation and disclosure to investors.

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UAE: New Media Legislation Enforces Strict Penalties Across Media Activities

Khaleej Times, 3 July 2025: The UAE enforced a new media law designed to regulate media activities, establishing stringent penalties that escalate to fines as high as Dh1 million for violations such as disrespecting religious beliefs and operating without proper licensing.

The law imposes penalties up to Dh1,000,000 for insulting religious beliefs and up to Dh100,000 for any media content violating public morals or spreading destructive ideas. Further fines up to Dh150,000 apply to inciting crimes like murder, rape, or drug abuse.

Disrespecting the UAE’s ruling system, national symbols, or state institutions incurs fines between Dh50,000 and Dh500,000, and content undermining national unity or foreign relations leads to fines up to Dh250,000.

Operating without a licence incurs penalties ranging from Dh10,000 for first-time offences to Dh40,000 for repeat violations. Similar fines apply to expired licences and unapproved changes to licensing conditions.

First-time dissemination of false information attracts a fine of Dh5,000, doubling upon repetition. Organising events like book fairs without permits draws fines of Dh40,000, incrementally increased for repeated offences.

Finally, if a foreign correspondent works without a licence they will receive written warnings, and repeat offences will lead to fines starting at Dh10,000.

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UAE: FTA Issues New Excise Tax Framework for Natural Shortages in Designated Zones

Alvarez and marsal, 26 June 2025: The UAE Federal Tax Authority (FTA) issued Decision No. 6/2025, effective from 1 July 2025, introducing a structured framework for the reporting and management of natural shortages of excise goods within Designated Zones, in line with international tax standards.

FTA has established a detailed framework for managing the natural shortages of excise goods—those occurring due to uncontrollable factors during production, transportation, or storage. The regulation will require businesses to seek pre-approval from the FTA for any natural shortages within a permissible threshold. This threshold must be corroborated by an FTA-approved Independent Competent Entity (ICE), which will conduct assessments of production processes and storage facilities and issue a report that will be valid for up to a year, confirming allowable shortages. When significant changes occur that might affect loss ratios, prompt notification to the ICE will be mandatory.

The new procedural requirements come with rigorous documentation and reporting duties, and businesses will need to maintain comprehensive audit-ready documentation, supported by ICE findings. This includes real-time traceability of excise goods and full compliance with potential FTA inspections. Non-compliance will lead to a risk of excise tax relief being denied and potential penalties.

This decision replaces previous natural shortage procedures, changing the approach from discretion by the FTA to a more systematic approach with obligatory third-party assessments and set deadlines. It will specifically target natural shortages, with other loss types like theft or operational errors remaining under separate guidelines, such as EXTP007.

Businesses affected by these changes should submit pre-approval requests to the FTA, ensure alignment with ICE standards, and update their internal processes accordingly. They should also revisit previous shortage claims to ensure compliance with the newly established criteria.

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UAE: Ministry Announces Exemptions Under the Unemployment Insurance Scheme

Gulf Today, 16 June 2025: The Ministry of Human Resources and Emiratisation (MoHRE) confirmed specific categories exempt from participation in the UAE’s Unemployment Insurance Scheme (UIS).

These include investors actively engaged in their registered businesses, domestic workers, temporary contract workers, minors below 18 years of age, and pensioners who are re-employed while drawing a pension.

Launched to provide compensation for unemployed individuals, the UIS requires remaining eligible participants to fulfil four key conditions: maintaining a minimum uninterrupted subscription period of 12 months, ensuring termination is not due to disciplinary reasons as per Federal Decree-Law No. 33/2021, preventing fraudulent claims or fictitious employment, and having compensation halted upon securing new employment during the payout period.

The decision impacts stakeholders within these exempt categories by relieving them of insurance dues, simplifying regulatory compliance for specific employment types.

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