UAE’s 2025 Legislative Drive: A Year of Sweeping Federal Decree Laws Reshaping Governance

The United Arab Emirates witnessed an intensive phase of legislative reform in 2025, with a series of Federal Decree Laws issued across the year to modernise governance, strengthen regulatory oversight and address emerging economic and social priorities. Covering finance, taxation, education, media, social welfare and institutional governance, the laws reflect a coordinated effort to align the UAE’s legal framework with international standards while preparing the country for future challenges.

Federal Decree-Law No. 6 of 2025 on the Central Bank and Regulation of Financial Institutions and Insurance Activities

One of the most significant laws enacted in 2025 was the overhaul of the legal framework governing the Central Bank of the UAE and the wider financial sector. The decree strengthens the independence of the Central Bank, expands its supervisory powers and consolidates regulation across banks, insurers and licensed financial activities.

The law enhances risk management, prudential oversight and financial stability mechanisms, while also extending regulatory reach to emerging financial models and digital financial services. It reinforces the Central Bank’s role in monetary policy, foreign reserve management and crisis response, positioning the UAE’s financial system on a stronger and more resilient footing.

Federal Decree-Law No. 10 of 2025 on Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation

Replacing earlier legislation, this decree introduces a strengthened national framework to combat money laundering, terrorism financing and proliferation financing. It broadens the definition of predicate offences, expands compliance obligations and enhances enforcement powers for regulators and law enforcement agencies.

The law explicitly addresses modern financial risks, including virtual assets and digital transactions, while imposing stricter governance and reporting requirements on financial institutions and designated non-financial businesses. Penalties for non-compliance are reinforced, underscoring the UAE’s commitment to financial integrity and international cooperation.

Federal Decree-Law No. 16 of 2025 Amending the Value Added Tax Law

As part of fiscal reform, the UAE issued amendments to its VAT framework aimed at improving clarity and administrative efficiency. The decree refines the application of reverse-charge mechanisms, clarifies tax treatment in specific scenarios and introduces defined time limits for reclaiming overpaid VAT.

The changes are designed to reduce uncertainty for businesses, strengthen compliance and support a more predictable indirect tax environment as the UAE’s tax system continues to mature.

Federal Decree-Law No. 17 of 2025 Amending the Tax Procedures Law

Issued alongside VAT amendments, this law introduces procedural consistency across tax types. It standardises limitation periods, sets clear deadlines for tax refund claims and voluntary disclosures, and enhances audit and assessment processes.

Together with the VAT amendments, the decree strengthens administrative transparency and reduces the scope for disputes between taxpayers and authorities, with most provisions taking effect from January 2026.

Federal Decree-Law No. 12 of 2025 on the Protection of Children Without Known Parents

In the social welfare sphere, this landmark law establishes a dedicated legal framework for children whose biological parents are unknown. It prioritises the best interests of the child and guarantees access to healthcare, education, psychological support and social integration.

The decree ensures confidentiality, dignity and protection of identity, complementing existing child rights legislation and reinforcing the UAE’s commitment to inclusive social protection policies.

Federal Decree-Law Establishing the National Media Authority

Issued in December 2025, this law restructures media governance at the federal level by establishing the National Media Authority, replacing earlier regulatory and supervisory bodies. The authority centralises responsibilities related to media licensing, content regulation, national messaging and sector development.

The reform reflects the evolving nature of media consumption and digital content creation, aiming to ensure consistent regulation while supporting a professional and responsible media ecosystem.

Federal Decree-Law on the Governance of the National Educational Curriculum

A major legislative milestone in December 2025 was the introduction of a comprehensive framework governing the national school curriculum, applicable from kindergarten to Grade 12 across public and private schools.

The law defines how curricula are designed, approved, reviewed and updated, while embedding national identity, values, competencies and learning outcomes at the core of education policy. It clarifies the roles of federal and local authorities and ensures consistency in compulsory subjects, even within schools offering international curricula.

Federal Decree-Law on Higher Education and Scientific Research

Completing the year’s legislative agenda, the UAE issued a federal law regulating higher education and scientific research across universities, colleges, technical and vocational institutions, including those in free zones.

The decree strengthens accreditation standards, governance frameworks and quality assurance mechanisms, while promoting research, innovation, lifelong learning and alignment with labour market needs. It establishes a unified federal approach to higher education oversight, supporting the UAE’s long-term human capital strategy.

A Year of Coordinated Legal Reform

Collectively, the federal decree laws enacted in 2025 represent a comprehensive and forward-looking legal overhaul. They strengthen institutional governance, enhance regulatory certainty, protect vulnerable segments of society and invest in education and innovation.

As many of these laws come into force in 2026 and beyond, their impact is expected to be felt across businesses, financial institutions, educational establishments and the wider community, underscoring the UAE’s commitment to modern governance and sustainable development.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.