UAE Compliance Alert: Key Updates You Need to Know – April 2025

April 2025 marks a period of significant regulatory updates and new compliances in the UAE, impacting individuals, businesses, and various sectors. Staying informed about these changes is crucial for residents, travelers, and companies operating in the Emirates. This article provides a detailed overview of the key compliances and regulatory updates taking effect this month.

Key Regulatory Updates in April 2025

Several important changes have come into force or will be implemented in April 2025:

  • Updated Personal Status Law: Federal Decree-Law No. 41 of 2024, announced in October 2024, came into effect on April 15, 2025, replacing the previous Federal Law No. 28 of 2005. This new law aims to enhance family stability, streamline legal processes, and address modern social dynamics for Muslim residents in the UAE. Key changes include:
    • Marriage Regulations: The minimum legal marriage age remains 18, but court approval is required for those under 18 or in cases where there is an age gap of more than 30 years between spouses.
    • Engagement Rules: Engagements are now recognized as proposals rather than binding contracts, with specific conditions for reclaiming engagement gifts. For instance, if a gift was given on the condition of marriage and is not a consumable item, it can be reclaimed if the engagement is terminated.
    • Child Custody: A modernized approach prioritizing the child’s best interests is adopted, adapting to contemporary family structures. The law also introduces stricter penalties for violations such as child abuse, neglect, and unauthorized travel with a minor, ranging from AED 5,000 to AED 100,000.
  • New Employment Regulations at Abu Dhabi Global Market (ADGM): The Registration Authority (RA) at ADGM introduced Employment Regulations 2024, effective April 1, 2025. These regulations align workplace policies with international standards and offer greater legal clarity for employers and employees within ADGM. Key updates include:
    • An expanded definition of ’employee’ to accommodate remote work and flexible employment arrangements. This means individuals working under various flexible models are now clearly defined within the legal framework.
    • Clear guidelines on rights and entitlements for part-time employees, ensuring they receive benefits and protections comparable to full-time employees on a pro-rata basis.
    • Improved clarity on work permit and visa procedures, including issuance and cancellation processes, aiming for greater efficiency and transparency.
    • Enhanced protections against workplace discrimination and victimization, reinforcing a fair and equitable work environment within ADGM.
  • Variable Parking Fees in Dubai: Dubai’s Parkin Company PJSC implemented a Variable Parking Tariff Policy starting April 4, 2025, to regulate parking rates based on peak and off-peak hours in high-demand areas. The revised parking rates are:
    • Off-Peak Hours (10 AM – 4 PM & 8 PM – 10 PM): Rates remain unchanged.
    • Peak Hours (8 AM – 10 AM & 4 PM – 8 PM): Premium public parking spaces now cost AED 6 per hour. This applies to 100% of public parking spaces and 35% of developer-owned spaces.
    • Sundays & Public Holidays: Free parking remains in place.
  • Al Fardan Exchange Metro Station Name Change: Announced in March, Al Khail Metro Station has been officially renamed Al Fardan Exchange Metro Station. Key updates being implemented in April include:
    • New signage being introduced at Dubai Metro stations to reflect the name change.
    • Updates to all external and indoor directional signs across Dubai Metro stations between April and June.
    • The new name will also be updated on digital smart systems, RTA’s public transport apps, and onboard audio announcements.
  • UK Visa Fee Increases: Starting April 9, 2025, the UK has increased visa application fees, impacting UAE residents planning to travel to the UK for visit, study, or work. For example, the standard six-month visit visa increased from £115 to £127, and the student visa fee rose from £490 to £524.
  • Cabinet Decision on Non-Resident Person’s Nexus for Corporate Tax: The Ministry of Finance issued Cabinet Decision No. 35 of 2025 on April 6, 2025, clarifying when a non-resident person has a nexus in the UAE for corporate tax purposes, particularly concerning investments in Qualifying Investment Funds (QIFs) and Real Estate Investment Trusts (REITs). This decision aims to reduce the compliance burden for foreign investors in these funds, stating that generally, non-resident juridical investors investing exclusively in QIFs and/or REITs will not be considered to have a taxable presence in the UAE, except under specific conditions related to dividend distribution or failure to meet diversity of ownership conditions.

Ongoing and Upcoming Compliances in 2025

Beyond the specific updates in April, several other significant compliances and regulatory changes are ongoing or will be implemented throughout 2025:

  • Corporate Tax: The UAE’s corporate tax regime, introduced in 2023, continues to evolve. Businesses need to ensure they are compliant with registration and filing requirements. The deadline for corporate tax registration for freelancers and social media influencers whose 2024 business revenue exceeded AED 1 million by July 31, 2024, was March 31, 2025. Large multinational enterprises with global revenues exceeding €750 million will be subject to a 15% minimum top-up tax for financial years starting on or after January 1, 2025.
  • Emiratisation: Companies with 50 or more employees are required to increase the number of Emirati employees in skilled roles by 2% annually. Non-compliant companies face penalties, with the penalty for not meeting the 2024 targets (payable in 2025) being AED 96,000 per Emirati not hired. The penalty for not meeting the 2025 targets will increase to AED 108,000, payable in 2026. Companies with 20-49 employees must hire at least two Emirati citizens by the end of 2025.
  • Mandatory Health Insurance: A nationwide mandatory health insurance program is being rolled out. While Dubai and Abu Dhabi already have such requirements, it became mandatory for employers in Sharjah and the Northern Emirates to provide basic health insurance for their employees from January 1, 2025. This is a condition for issuing or renewing residency permits for employees up to the age of 64.
  • Traffic Law Updates: New federal traffic regulations, which came into effect in March 2025, include lowering the minimum driving age to 17, regulating e-bikes and e-scooters, and introducing stricter penalties for violations like drunk driving and hit-and-run incidents.
  • Plastic Ban Expansion: Dubai is expanding its ban on single-use plastics. Following the ban on single-use bags in June 2024, January 1, 2025, saw the ban extend to styrofoam products (cups, containers), plastic stirrers, straws, table covers, and cotton buds with plastic stems. A further phase in January 2026 will prohibit single-use plastic cups, lids, cutlery, food containers, and plates.
  • Food Safety Regulations: New food safety regulations are being implemented in 2025 to standardize practices across all emirates, enhance oversight of traditional and e-commerce food sectors, and introduce the Nutri-Mark nutritional labeling system, which will become mandatory in June 2025.
  • Utility Fee Adjustments: Dubai Municipality is phasing in increases to sewerage charges, starting with 1.5 fils per gallon in 2025, increasing to 2.0 fils in 2026 and 2.8 fils in 2027.

Conclusion

April 2025 is a key month for regulatory updates in the UAE, with significant changes in personal status law, employment regulations in ADGM, parking fees in Dubai, and other areas. Businesses and residents must stay vigilant and ensure they understand and comply with these new and ongoing regulations to avoid penalties and ensure smooth operations and adherence to the law. Keeping abreast of these changes will contribute to a more compliant and well-informed community in the UAE.