Several new laws and regulations have come into effect this month, as the UAE ushers in the new year. From the new corporate tax for multinationals to fresh Emiratization targets, we have a breakdown of all the new legislations, regulations, and taxes now in force below:

TAXES AND FEES-

#1- Corporate tax increase for multinationals: Large multinational enterprises earning EUR 750 mn or more in global revenue will starting this year be subject to a 15% minimum corporate tax, up from the previous 9%, under the Finance Ministry’s recent domestic minimum top-up tax (DMTT). The DMTT applies to consolidated revenues in at least two of the four financial years before the tax takes effect.

PLUS- High-value employment activities could be eligible for a tax credit as a percentage of eligible salary costs as of 1 January, under a separate proposal pending legislative approvals. The new scheme applies to C-suite executives and senior personnel performing core business functions that enhance the UAE’s global competitiveness.

#2- New ADGM fee structure: The ADGM introduced updated fees starting 1 January, featuring reduced fees for non-financial and retail businesses, it said in a statement. The breakdown:

  • In the non-financial category, initial registration was reduced from USD 10k to USD 5.5k, and annual renewal was reduced to USD 5k, from USD 8k;
  • In the retail category, initial registration was reduced to USD 2.5k, from USD 6k, and annual renewal was halved to USD 2k;
  • Financial businesses’ fees increased, with initial registration raised to USD 16.7k, up from USD 15k, and annual renewal raised from to USD 16.2k, up from USD 13k;
  • Tech startups’ registration and renewal fees were adjusted from USD 1k to USD 1.5k;
  • A USD 300 data protection fee applies to all categories for new registrations and renewals.

The new fee structure applies to all license categories across Al Maryah and Al Reem Islands within ADGM, with the exemptions for non-financial and retail businesses on Al Reem Island being discontinued as of 31 December 2024.

Background: The ADGM added Al Reem Island to its jurisdiction in November 2023 as part of its expansion to accommodate the demand for office space in the financial hub. ADGM waived registration fees for Reem Island businesses until December as part of an incentive package aiming to facilitate their transition to the hub.

#3- Increased sewage costs in Dubai: Dubai’s sewerage fees increased to 1.5 fils per gallon, up from 1 fils for the first time in 10 years, as part of a phased increase planned under the Dubai Municipality’s new sewage fee structure to keep pace with a rising population and encourage water conservation. Tariffs will be hiked to 2 fils per gallon starting in 2026 and 2.8 fils per gallon starting in 2027.

#4- Salik is set to introducevariable road toll pricing at the end of January. The breakdown of the new toll fee structure:

  • Peak hours (weekdays, 6-10am, 4-8pm): AED 6;
  • Off-peak hours (weekdays, 10am-4pm, 8pm–1am): AED 4;
  • No toll fees between 1-6am daily, and all day Sunday except during public holidays or major events.

Meanwhile, Parkin will introduce variable parking tariffs as of March, which will see new fees introduced for peak hours (8-10am and 4-8pm), with a fee of AED 6 per hour for premium parking spaces and AED 4 for other public spaces. The new policy will also see an AED 25 per hour fee introduced for parking near event zones as of February. 

EMIRATIZATION-

Emiratization quotas hiked: Private sector companies with 20 to 49 employees were mandated to hire at least one Emirati citizen by 31 December 2024, and at least two as of 2025, under a new circular from the UAE’s Human Resources and Emiratisation Ministry.

New penalties for non-compliance: Non-compliance now results in penalties of AED 96k for failure to hire one Emirati starting January 2025, and will later be hiked to AED 108k for companies that have not employed two Emiratis this year.

Meanwhile, companies with 50 (or more) employees must ensure 7% of their workforce are Emiratis by mid-2025 and 8% by year-end.

PRICE CONTROLS ON BASIC GOODS-

The Economy Ministry placed a cap on price increases for nine basic commodities as of 2 January 2025, with retailers now needing prior approval from the Ministry to increase prices, with a minimum of six months required between two consecutive price hikes.

The rule applies to nine essential consumer goods: cooking oil, eggs, dairy products, rice, sugar, poultry, legumes, bread, and wheat. Other related items and cleaning products will also be subject to the new rules.

Under the new regulations, retail stores and online merchants are now also required to clearly display unit prices using standardized measurements.

HEALTHCARE-

#1- Mandatory health ins.: Health ins. is now required for all employees in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah — extending the mandate previously limited to just Abu Dhabi and Dubai. The new requirement applies to all employees with new work permits — and renewals of old permits as of 1 January 2025. 

REMEMBER- In support of this new rule, the Human Resources and Emiratisation Ministry launched basic health ins. package last month aimed at private sector employees across the UAE. The package — costing employers AED 320 per year — offers coverage for individuals aged 1 to 64 years old.

#2- All Emirati citizens must now undergo genetic testing as part of premarital screenings, as mandated by the Abu Dhabi Department of Health in November. The testing covers 570 genes linked to over 840 genetic disorders, aiming to reduce the transmission of hereditary diseases and empower couples in family planning.

SUSTAINABILITY-

Say goodbye to plastic straws, cups, and other single-use plastics: Dubai pulled the brakes on single-use plastic products, with a ban on everything from plastic stirrers, table covers, cups, Styrofoam containers and straws to cotton swabs, taking effect at the beginning of January. The resolution follows the earlier ban on plastic bags, coming as part of a phased approach towards banning single-use plastic altogether. Non-plastic single-use products — including non-plastic bags for single use — will be banned by 2026.

Penalties: Violators face a AED 200 fine for first offenses, with fines doubling for repeat offenses within a year. Repetition fines are capped at AED 2k.

**This article was modified to clarify that Parkin will introduce the variable parking tariff policy in February and March this year. 

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