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This comes up constantly, and there is still a lot of confusion about it. The headline “100% foreign ownership is allowed” is broadly true, but the full position is more nuanced. 

The basic rule: Following the 2020 amendments and Federal Decree-Law No. 32 of 2021 on Commercial Companies, foreign investors may own 100% of a mainland UAE company for most economic activities. The previous general requirement for a UAE national to hold 51% of a mainland LLC no longer applies across the board.

The exceptions: Certain activities with a strategic impact remain subject to additional ownership and licensing controls. These include specified security, defence, financial, telecommunications, religious-service and fisheries-related activities. Depending on the activity, the relevant regulator may determine the permitted foreign ownership percentage, UAE national participation, board composition and other conditions.

Free zones versus mainland: Free zones have generally allowed up to 100% foreign ownership, but free-zone companies have traditionally required additional licensing arrangements to conduct certain activities directly outside the free zone. Depending on the business, this could involve a mainland branch, distributor, dual licence or other regulatory approval.

What the 2025 Commercial Companies Law amendments added: Federal Decree-Law No. 20 of 2025 clarified that free-zone and financial-free-zone companies may establish branches or representative offices and conduct activities within the UAE, subject to the relevant free-zone rules and the necessary mainland licences and approvals. It also expressly confirmed that companies established in UAE free zones and financial free zones have UAE corporate nationality.

If you are setting up a business in the UAE and are unsure which structure suits you, the starting point should be your proposed business activity, where your customers are located and whether you require direct access to the mainland market. 

This is probably the biggest legal change in the UAE in decades, and it has had almost no coverage in expat media.

Federal Decree-Law No. 25 of 2025, the new Civil Transactions Law, came into force on 1 June 2026. It replaces the Civil Code that has been in place since 1985. 

What does the Civil Transactions Law cover? Almost everything that isn't criminal or family law: contracts, property obligations, civil liability, compensation, business agreements, pre-contractual negotiations, and more.

What changed that affects ordinary people and businesses?

Pre-contract obligations are now stricter: If you are negotiating a contract and you have information that is essential to the other party's decision, you now have a legal duty to disclose it. Failing to do so can result in the contract being annulled. This affects property purchases, business deals, and commercial agreements.

Liquidated damages in contracts can now be adjusted by courts: If a contract has a penalty clause and a court finds it excessive, the court can now reduce it. Conversely, if the penalty was too low and the other party committed fraud or gross negligence, the court can allow a higher claim.

Contracts signed during negotiations carry more weight: Even preliminary agreements, letters of intent, and MOU-stage discussions carry legal obligations under the new law.

This is a major shift that affects anyone entering contracts in the UAE. Has anyone here had a contract dispute that might look different under these new rules?

If you run a business in the UAE or are considering setting one up, Federal Decree-Law No. 20 of 2025 is worth knowing about. The Decree-Law, which took effect in October 2025, amended Federal Decree-Law No. 32 of 2021 on Commercial Companies and introduced important changes concerning ownership structures, shareholder exits and corporate restructuring. 

Here are the changes that affect most business owners in plain language:

LLCs can now have multiple share classes: Before this, all LLC shareholders had equal rights per share. The new law allows different share classes with different voting rights, profit rights, or exit terms similar to how startup structures work globally. This is a big deal for investors and founders negotiating different terms.

Drag-along and tag-along rights are now legally recognised: These are standard investor protections in most countries but weren't formally part of UAE law before. Drag-along: majority shareholders can force minority shareholders to sell in an acquisition. Tag-along: minority shareholders can join a sale on the same terms. Businesses should review their shareholders’ agreements, Memoranda of Association and Articles of Association to determine whether these new options should be incorporated into their corporate documents. 

Moving a company between mainland and free zone is now possible: Previously, if you wanted to move your company from a free zone to the mainland (or vice versa), you essentially had to close one entity and open another. The new law creates a re-domiciliation process so you can transfer without starting over.

Free zone companies now have UAE nationality for legal purposes: A long-standing ambiguity has been resolved. Free zone companies are now confirmed to have UAE nationality under UAE law, which matters for contracts, dispute resolution, and cross-border structuring.

Has anyone here had to restructure a business because of the old rules? Questions about how this affects your setup?

This question comes up constantly, and the stakes are high enough that it's worth a clear post.

The UAE has a controlled medicines list. Some medications that are completely legal and common in other countries are restricted or banned in the UAE.

What to do if you need to bring controlled medication:

1. Check the UAE Ministry of Health's controlled medicines list before you travel
2. Carry a doctor's prescription and ideally a letter on headed paper
3. Apply for a prior approval permit from the UAE Ministry of Health for longer stays or larger quantities
4. Carry medication in the original packaging

If in doubt, check before you travel.

Questions about specific medications or situations? Drop them below.

When Do You Need a Child Custody Lawyer in the UAE? Important Things Every Parent Should Know

To raise kids well, you need a strong base, clear plans, and builders you can trust, just like when you build a house. When a family breaks up or has legal problems, that foundation needs legal support. This guide will help you know when it’s time to hire a child custody lawyer if you’re a married couple in the UAE and are worried about what might happen to your kids if you separate, move, or disagree. We’ll explain the law, give you examples from real life, and use simple analogies to help you make smart, calm choices about your kids’ future.

What UAE law says about custody and how it has changed

• In the past, when Muslims were in charge of the law, the mother usually had physical “custody” of the children, while the father had guardianship (making decisions about education, travel, etc.). Boys stayed with their mother until they were 11, and girls stayed with their mother until they were 13. As per the latest amended law, Federal Decree 41/2024, on the Issuance of Personal Status Law, the mother can retain the custody of the child till 18 years of age; also, upon attaining the age of 15, the child can choose to reside with either parent.
• For non-Muslims, as per Federal Decree-Law No. 41/2022 on Civil Personal Status, custody laws have changed. Joint custody until the child turns 18 is now the norm, which means that both parents are equally responsible for raising the child, and the child, who is 15 or older, can choose which parent to live with, as long as the court agrees that it’s in the child’s best interest.

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Travel bans are one of the most stressful situations expats face because they are often discovered at the worst possible moment — at departure.

How to check:

• Dubai Police app → "My safe Dubai" service
• MOHRE app (for labour-related bans)
• Dubai Courts website (for court-ordered bans)
• You can also check through a typing centre or a legal advisor

Common reasons for travel bans:

• Unpaid debts or civil judgments against you
• Active criminal complaints
• Labour disputes filed by an employer
• Bounced cheques (in certain cases)
• Family law cases (child custody, maintenance)

Important: A travel ban does not always mean arrest. Many bans are civil; you are stopped from leaving but not detained, unless there is a separate criminal order.

If you suspect you might have a ban, checking before you travel is strongly advisable. Has anyone here dealt with an unexpected travel ban?

The UAE Cybercrime Law (Federal Decree-Law No. 34 of 2021) is broad and catches people off-guard. A few real examples of what can get you in trouble:

• Forwarding a WhatsApp message that contains false information — even if you didn't create it
• Posting something online that "harms" someone's reputation — this is interpreted broadly
• Recording someone without their consent — even in a dispute situation where you want "evidence"
• Negative reviews that lead to defamation — there have been cases over Google and TripAdvisor reviews
• Mocking or insulting someone in a voice note or message that gets reported

Engaging in online conduct that is deemed harmful or defamatory can lead to substantial financial penalties and potential imprisonment.

Has anyone here had an experience with an online complaint being filed against them?

Many expats assume their employer holds all the cards when it comes to their visa and employment. Here's what the law actually says:

• You are entitled to written notice before termination (30–90 days depending on your contract)
• If you are terminated without cause, you are entitled to end-of-service gratuity calculated on your basic salary
• Your employer cannot cancel your visa while a labour dispute is active through MOHRE
• You have the right to file a complaint with MOHRE (Ministry of Human Resources and Emiratisation) for free. You do not need a lawyer to do this as a first step

Common situation people ask about: employer says "we're cancelling your visa, you have 30 days to leave." That does not automatically mean you have to leave without settling your dues first.

Has anyone here dealt with a wrongful termination or visa cancellation situation? What happened?

WhatsApp is part of daily life in the UAE. People use it for business, family discussions, tenancy issues, employment matters, school groups, and even disputes. However, many residents do not realize that a private WhatsApp message can still create legal risk if it contains insults, threats, confidential information, private photos, rumors, or unlawful content.

The UAE takes online conduct seriously. Federal Decree-Law No. 34 of 2021 on Combatting Rumors and Cybercrimes applies to the use of information technology, online platforms, social media, messaging applications, and electronic communication tools. The law came into force on 2 January 2022 and is the main legislation dealing with cyber-related offenses in the UAE.

Can WhatsApp Messages Be Treated as Cybercrime Evidence?

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Rental disagreements are more common in Dubai than many people realize. With thousands of new tenancy agreements signed each year, most go smoothly, but issues still arise at the time of the lease.

A landlord may increase rent without prior informing the tenant, and the landlord may face delayed rent payments or issues with damage to the property. Other common issues include eviction notices, maintenance responsibilities, or getting the security deposit back at the end of the lease.

If these problems get worse, it often helps to talk to a landlord-tenant lawyer in Dubai. A lawyer can look over the tenancy agreement, review the communication between both sides, and explain how UAE tenancy laws apply to your case. For many residents, especially expatriates, the legal process can be confusing. Learning the basics of tenancy law is the first step.

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