The United Arab Emirates (UAE) implemented several new laws and policies at the beginning of 2023 that will affect residents, workers, and businesses in the country.

Here are some of the notable changes:

1. Emiratisation for the private sector companies

According to the Nafis Program, private UAE businesses with at least 50 employees will need to reach the 2 % Emiratisation requirement as of January 1, 2023. This initiative aims to provide UAE nationals with more than 12,000 new work opportunities each year across all economic sectors. Companies that fail to achieve the target by July 1 will face penalties. The governement aims to acheive 10% Emiratisation by 2026.

2. Involuntary Loss of Employment Insurance Scheme

The UAE has implemented a compulsory unemployment insurance program that took effect on January 1, 2023. Under this program, employees are eligible to receive 60% of their basic income for up to three months after losing their jobs. If the employee is terminated due to disciplinary reasons they are not eligible for the scheme.  Depending on the salary, employees are divided into categories A or B. The insurance scheme's premium is either Dh60 (Dh5 per month for employees with a salary < AED 16,000) or Dh120 (Dh10 per month for employees with a salary >AED 16,000). However, an employee must have worked at their former position for a minimum of 12 months straight, to be eligible for compensation under the plan. 

3. Civil Personal Status law for non-Muslims

The UAE has implemented a new personal status law for non-Muslims that took effect on February 1, 2023. The law regulates many facets of daily life, including marriage, divorce, estate planning, wills, and child custody. The provisions of the legislation apply to non-Muslim inhabitants of the UAE and govern the requirements for marriage as well as the processes for contracting and registering the union with the appropriate courts. It outlines the procedures for settling financial claims following divorce and the provision of shared custody for children. It also describes the divorce procedures that can be initiated jointly or unilaterally. The law also governs the processes of wills, inheritance, and paternity evidence. 

4. Alcohol Tax Reduction

Paving the way to the interest of tourists and expats, UAE has relaxed its alcohol rules. The 30% tax on all alcohol purchases in Dubai will be eliminated on January 1, 2023. A passport or an Emirates ID will suffice for applicants to receive a free alcohol license, which is also available to residents and visitors alike.

5. Corporate tax

Businesses in the UAE will be liable to corporate tax beginning with their first fiscal year that begins on or after June 1, 2023, per Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses. Businesses and corporations must pay a basic rate of 9% tax under the new tax law if their taxable profits exceed Dh375,000.

In order to promote economic growth and diversification, provide job possibilities for UAE people, and improve the competitiveness of the nation's enterprises, the UAE adopted important legal amendments in 2023. Residents, employees, and enterprises in the UAE should be aware of these changes and make sure the new laws are followed.