The UAE continued its ambitious legislative overhaul in 2025, issuing a wide range of legal reforms that touched on public safety, financial regulation, digital governance, and criminal justice. These changes reflect the nation’s ongoing efforts to modernise its legal framework in line with social priorities, global standards, and economic diversification.
Tougher Drug Control Laws: Greater Penalties and Enforcement
In 2025, the UAE significantly revised its anti-narcotic laws to strengthen deterrence and enforcement. Under a broadened Federal Decree-Law on Combating Narcotic Drugs and Psychotropic Substances, the authorities introduced severe criminal penalties — including minimum five-year imprisonment and fines starting at AED 50,000 — for individuals and entities involved in unlawful distribution, dispensing, or facilitation of controlled drugs without valid prescriptions.
The reforms also elevated certain offences (such as unlawful prescription and dispensing of narcotics) to be treated as “facilitating drug use,” carrying heavier sanctions than previously applied. Foreign nationals convicted of drug crimes face mandatory deportation after completing their sentence, marking a clear shift toward zero tolerance for drug-related activities.
These changes aim to improve public health protection, tighten compliance requirements in the healthcare sector, and curb illegal drug markets. Gulf News
Financial Regulation: Strengthened AML/CFT Framework
A major milestone in 2025 was the enactment of Federal Decree-Law No. 10 of 2025, a comprehensive new anti-money laundering (AML), counter-terrorist financing (CTF), and proliferation financing (PF) law. This new legislation repealed the previous AML regime and introduced a modernised regulatory framework designed to align the UAE with Financial Action Task Force (FATF) recommendations and international best practices.
Key updates include:
- Expanded scope of offences, including proliferation financing and other predicate offences for AML liability.
- Explicit coverage of virtual asset service providers (VASPs) under AML/CFT/PF obligations; and
- Lower evidentiary thresholds and enhanced powers for enforcement authorities.
By bringing virtual assets, terrorism financing, and broader financial crimes into the primary legal framework, the UAE has substantially increased regulatory clarity and accountability for banks, fintechs, and non-bank financial institutions.
These reforms also press home the UAE’s commitment to maintaining high standards of financial integrity and transparency following its removal from the FATF “grey list”. Greenberg Traurig
Banking and Consumer Protection Updates
Alongside AML reforms, 2025 saw significant changes to the financial regulatory landscape, including updates to the UAE’s banking law structure. New provisions now empower regulators to impose administrative fines of up to AED 1 billion and introduce unified complaint mechanisms for customers across banks and insurers.
These measures are designed to strengthen consumer protection, enhance dispute resolution, and foster a more transparent, accountable financial system for businesses and individuals alike.
Another noteworthy innovation is the legal recognition of the Digital Dirham as legal money, paving the way for central-bank digital currency use cases and modernised settlement systems across the economy.
Digital Safety and Protection of Children Online
Digital governance was another major focus area in 2025. The UAE government approved a federal decree law targeting harmful digital content and prioritising the safety of children on digital platforms. The law applies to internet service providers, social media platforms, messaging apps, online gaming services, and other digital content providers. The National
Under the new framework:
- A Child Digital Safety Council was established to formulate policy and classification standards.
- Digital platforms are prohibited from collecting or sharing personal data of children under the age of 13, except in defined circumstances; and
- Platforms must comply with risk-based categorisation and content-control measures.
These reforms reflect the UAE’s intention to ensure digital innovation is balanced with robust protections for minors and responsible content governance.
Broader Legal Reforms and Policy Shifts
Beyond these core areas, 2025 witnessed broad legislative activity across multiple domains, including business law, justice, tax, child welfare, and public health. A series of federal law amendments reshaped various legal regimes to support economic growth, social welfare, and governance efficiency.
These reforms demonstrate the UAE’s comprehensive approach to law-making, emphasising adaptability, global alignment, and responsiveness to evolving societal and technological needs. Gulf News
The UAE’s legal reforms in 2025 mark a significant step toward aligning the country’s regulatory and legal architecture with international norms while addressing pressing social, economic, and technological challenges. With tougher drug control laws, a modernised financial regulatory framework, enhanced AML/CFT measures, and robust digital safety protections, the nation has showcased its commitment to the rule of law, public safety, and global competitiveness.
For businesses, investors, and residents, these changes underscore the importance of active compliance, strategic planning, and legal awareness in navigating the UAE’s rapidly evolving legal landscape.
Changes to the Civil Transactions Law, 2026
On 1 January 2026, the UAE ushered in one of the most significant legal reforms of the last decade: the promulgation of changes to the Civil Transactions Law, 2026. The implications of this law are far-reaching, practical, and deeply relevant to how people live, contract, invest, inherit, and resolve disputes in the UAE. See the details here Recent Changes in the UAE Civil Transactions Law (2026).
