Federal Laws in UAE

Federal Laws in UAE

By Published On: March 21, 2025Views: 41

The federal laws in the United Arab Emirates (UAE) have strengthened the country’s global position in terms of fair business practices and human rights. As a Muslim country with a diverse population, the UAE has a legal system that is a blend of Shariah, civil, and international laws. The UAE laws protect residents, investors, and expats in various aspects of daily life. Our lawyers in Dubai, provide professional consultancies. Our professional and expert lawyers in Dubai provide legal assistance in Emirati of Dubai and all over the United Arab Emirates.

Understanding the UAE’s Legal System

The UAE legal system is operated by federal laws based on the UAE constitution, civil laws, Islamic principles, and international agreements and treaties. Our Lawyers in Dubai can help you understand the laws in the UAE and ensure legal compliance for your matter. Let’s explore the key federal laws more.

Do you have any question about the article? Contact us now.

Key Federal Laws in the UAE

  • Federal Law No. 31 of 2021 (UAE Penal Code)

The crime rate is indeed low in the UAE. The credit goes to the UAE Penal Code, which has severe penalties for crime offenders, depending on the nature of the crime that has been committed. The UAE Penal Code can be applied to criminal offences such as fraud, cybercrimes, and violations of public security. However, it has severe penalties for money laundering, bribery, and forgery. The Penal Code aims to maintain public law and order in the UAE by eradicating civil crimes and cybercrimes.

  • Federal Law No. 5 of 1985 (UAE Civil Code)

If you are planning to do business in the UAE, you should understand the UAE Civil Code, which governs transactions and contracts in the business environment. Moreover, the civil code governs real estate transactions and ownership rights. Buyers can consult the UAE civil code to ensure fair trade practices in the consumer market.

  • Federal Decree-Law No. 33 of 2021 (UAE Labour and Employment Law)

Many expats have come to the UAE to dive into lucrative economic opportunities. They are protected under the UAE labour laws. If you are an employee in the UAE, you must ensure that your employment contract is aligned with the UAE labour laws, including wages and working hours. However, if you are mistreated at work, you can talk to a labour lawyer about your case, and they will ensure justice through labour laws. Nonetheless, the UAE labour laws protect everyone working in the UAE’s labour rights.

  • Federal Law No. 28 of 2005 (UAE Personal Status Law)

The UAE Personal Status Law deals with family laws. You can get married or divorced in the UAE as per the Personal Status Law. Other cases related to family, such as child custody and inheritance, are also resolved through the UAE Personal Status Law. However, these laws are applied differently for Muslims, non-Muslims, and expats. The UAE Personal Status Law protects the rights of individuals, especially women.

  • Federal Decree-Law No. 32 of 2021 (UAE Commercial Companies Law)

The UAE Commercial Companies Law ensures secure business formation and foreign investments. It allows expats to have 100% ownership of their business if they establish businesses in freehold areas. However, the law also defines the regulations for joint ventures, mergers and acquisitions.

  • Federal Decree-Law No. 34 of 2021 (UAE Cybercrime Law)

As time has evolved, digital rights are also connected with human rights. With the technological emergence of artificial intelligence (AI) tools, cybercrimes have increased. People have been threatened more than ever on their social accounts. Social media is not safe for sharing sensitive information online. Therefore, the UAE Cybercrime law has been introduced to identify criminal threats and financial frauds happening through hacking and invading data privacy.

  • Federal Decree-Law No. 20 of 2018 (UAE Anti-Money Laundering Law)

Money laundering is a heinous crime in the UAE. The Anti-Money Laundering (AML) Law emphasizes financial crimes. Indeed, some crimes are not as small as they seem to be. Financial crimes are investigated thoroughly, so terrorism can be avoided if not financed. Any suspicious financial activity from any individual or business account shall be investigated under the AML in the UAE.

Federal Laws For Investment and Business in United Arab Emirates

The UAE is a global economic leader. Business laws have evolved based on international business practices. Several business laws are taken into account when investments and financial transactions take place in the UAE and across borders:

  • Foreign Investment Law

Federal Law No. 19 of 1018. Investment in the UAE is a lucrative opportunity. The foreign investment law encourages international investors to do business in the UAE by allowing them 100% ownership in freehold areas. Those areas are designated for expats if they want to establish a business or buy a property with full ownership.

  • UAE Bankruptcy Law

Federal Decree-Law No.9 of 2016. Bankruptcy happens when the business is going through financial issues. The Bankruptcy law ensures protection for businesses and investors by creating a legal framework in the UAE.

  • Consumer Protection Law

Federal Law No.15 of 2020. Consumer rights are taken seriously in the UAE. The pricing of commodities is decided as per consumer laws. To ensure fair pricing in the UAE, the consumer courts have laid the Consumer Protection Law, keeping pricing values transparent for consumers.

  • Intellectual Property Laws

Nowadays, many businesses are established in the UAE. The intellectual property laws in the UAE protect the company’s logo, copyrights, and patents. You are advised to register your company’s patents and trademarks, no matter if it is a start-up business. Intellectual property laws also protect artists’ creative content.

  • Real Estate and Property Laws

Buying a property in the UAE is easy with the real estate and property laws. However, these laws define the areas where foreign ownership is allowed. Moreover, these laws also protect the rights of landlords and tenants in the UAE to ensure healthy relations between the two entities. Consequently, developers are also guided by real estate laws when they are involved in leasing, selling, or purchasing land.

Specialized Courts

There are separate courts to resolve civil cases, such as labour courts, family courts, and consumer courts. Dubai lawyers are helpful to investors and individuals with issues related to real estate, business, and family.