From Statutes to Systems: The UAE’s Quest to Modernise Justice and Govern with Data, Law and Design

The United Arab Emirates has witnessed one of the most comprehensive phases of legal reform in its history. From 2020 to 2025, the country introduced sweeping changes across civil, commercial, criminal, and family law frameworks -- complemented by digital transformation in the judiciary and the world’s first steps toward AI-assisted lawmaking.

 

What began as a post-pandemic push to harmonise legislation and attract global investment has evolved into a structural transformation aimed at making the UAE a model for efficient, technology-driven justice.

 

Opening the Economy, Reinventing Corporate Law

 

The first major wave of reform came in 2020, when Federal Decree-Law No. 26 lifted restrictions on foreign ownership of mainland companies. This landmark decision effectively abolished the 51-per-cent local shareholder requirement in most sectors -- aligning the mainland investment regime with the flexibility long offered in free zones.

 

This shift was central to the UAE’s strategy to enhance competitiveness and attract international investment. It helped encourage regional headquarters relocations to Dubai and Abu Dhabi, signalling the government’s intent to create a more transparent and investor-friendly legal environment.

 

“By liberalising company ownership, the UAE not only invited capital but also confidence,” says Sunil Ambalavelil, Chairman of Kaden Borris. “This step sent a message to investors that the country is ready to compete globally under fair and predictable legal rules.”

 

Arbitration and Dispute Resolution Reforms

 

Parallel to economic liberalisation, the UAE strengthened its position as an international arbitration hub. Amendments to the Federal Arbitration Law, most recently in 2023, refined procedural clarity and reinforced the enforceability of awards. The reforms aimed to synchronise onshore arbitration with the standards of Dubai International Arbitration Centre (DIAC), DIFC-LCIA, and ADGM Arbitration Centre.

 

Legal observers note that arbitration clauses are now viewed with greater certainty in both federal and local courts -- a shift that positions the UAE alongside leading jurisdictions for cross-border dispute resolution.

 

“The UAE has found a balance between flexibility and oversight,” Ambalavelil adds. “It has made arbitration more credible, accessible and aligned with international best practice -- a key signal to global investors.”

 

Family Law: Reflecting a Diverse Society

 

In 2024 and 2025, family law underwent major reform with the introduction of the UAE Civil Personal Status Law and specialised non-Muslim family courts. The new legislation introduced no-fault divorce, expanded custody rights, and clarified rules for inheritance and guardianship, particularly for expatriate residents.

 

These reforms were designed to provide predictability and fairness in family disputes involving non-Muslim residents, who make up a large proportion of the UAE’s population.

 

“The creation of separate civil courts for non-Muslims is a pragmatic reflection of the UAE’s demographic reality,” says Ambalavelil. “It demonstrates that the UAE is evolving socially as well as economically, embracing legal pluralism while maintaining coherence within its judicial structure.”

 

Criminal and Civil Code Modernisation

 

In late 2021, the UAE introduced the “largest legislative reform in its history.” The package revised more than 40 laws, including the Federal Crime and Punishment Law, Cybercrime Law, and Commercial Transactions Law.

 

Key features included clearer definitions of privacy violations, protections for women and domestic workers, and modernised provisions on digital evidence and electronic contracts. The new Civil Procedure Code (2023) further streamlined litigation, setting shorter timelines for case disposal and allowing remote hearings, which proved effective during the pandemic.

 

Labour Disputes and Workers’ Rights

 

In the labour sector, reforms introduced under Federal Decree-Law No. 33 of 2021 standardised employment contracts and strengthened worker protection. A new mechanism empowered the Ministry of Human Resources and Emiratisation (MoHRE) to resolve disputes below a certain monetary threshold administratively -- helping reduce court backlogs and accelerate wage settlements.

 

These measures were part of a broader campaign to ensure equitable treatment for workers while enhancing transparency for employers. “Labour law reform has helped position the UAE as a responsible, rules-based market,” Ambalavelil notes. “It gives both employers and employees confidence that disputes will be handled efficiently.”

Judicial Infrastructure: From Courts to Code

 

Beyond legislation, judicial administration itself has undergone rapid digitalisation. The UAE has rolled out smart court systems, virtual hearings, and AI-driven case management tools. The Dubai Judicial Institute, showcased at GITEX Global 2025, highlighted its theme “Innovative Training, Sustainable Impact,” demonstrating how technology is being used to train judges and automate case workflows.

 

In August 2025, a decree by His Highness Sheikh Mohammed bin Rashid Al Maktoum established Dubai’s Centre for Judicial Expertise to standardise and accelerate expert reporting in civil and criminal proceedings -- an initiative hailed by the judiciary as a milestone for procedural efficiency.

 

“These developments show that reform is not confined to lawmaking -- it extends to how justice is delivered,” Ambalavelil observes. “The UAE is building a judicial ecosystem that is digital, data-driven, and globally competitive.”

 

AI-Assisted Lawmaking: The Next Frontier

 

The UAE’s most futuristic reform came in April 2025, when the Cabinet announced an AI-powered regulatory intelligence platform to assist legislative drafting. This system will analyse existing laws, monitor their social and economic impact, and help policymakers simulate outcomes before enactment.

 

The initiative, part of the UAE’s Artificial Intelligence Strategy, makes it one of the first nations to use AI for continuous legislative review.

 

Advocates argue that the system will make laws more responsive and evidence-based, while critics warn of accountability and bias risks. Officials have clarified that AI will support, not replace, human lawmakers -- ensuring that ethical and legal oversight remains central to the process.

 

Ambalavelil describes it as a “bold and forward-thinking experiment.”
“AI in lawmaking is not about surrendering judgment to machines -- it’s about empowering lawmakers with better data and predictive insight,” he says. “If implemented responsibly, it could redefine how nations legislate in the 21st century.”

 

Sharjah’s Judicial Reforms and Local Initiatives

 

The reform momentum has also spread to the emirates. In June 2025, Sharjah enacted Law No. 7 of 2025, reinforcing judicial independence and prohibiting interference in judicial matters. The law emphasises equality before the law and impartiality -- reflecting the broader national trend toward modernised, codified justice.

 

Balancing Modernisation with Safeguards

 

While reform has been widely praised for improving transparency and efficiency, legal experts caution that implementation remains key. Training judges, harmonising practice between emirates, and ensuring clear jurisprudence will determine whether these reforms deliver long-term confidence.

 

“Laws alone do not ensure justice,” Ambalavelil concludes. “It’s how consistently they are applied that earns trust. The UAE’s challenge now is to ensure that its modern laws translate into modern justice.”

 

A New Legal Era

 

Five years on, the UAE’s legal landscape looks markedly different. From corporate liberalisation and arbitration reform to family-law modernisation, AI-assisted legislation, and digital courts, the transformation has touched every layer of governance.

 

As the UAE positions itself as a global economic and technological hub, its modernised legal system stands as both foundation and showcase -- a testament to how fast a nation can evolve when innovation and justice move hand in hand.