Need to Know: New UAE laws & rules from 1st June 2026

1st June 2026 is a significant day for UAE laws. Several important changes are coming into force, and if you live or work here, some of these will affect you directly.

This article is an easy-to-follow summary so you can keep up to date.

The New Civil Code. The biggest change in 40 years

This is the biggest headline change even if it doesn’t sound very exciting.

The UAE’s Civil Transactions Law, which has been the foundation of civil and contract law since 1985, has been completely replaced.

The new law governs how contracts are interpreted, how disputes are resolved, and the rights and obligations of both individuals and businesses.

If you have long-term contracts in place governed by UAE law, it is worth reviewing them. The old law still applies to agreements made before today, but going forward everything falls under the new code.

Age of majority reduced from 21 to 18 years

This is a practical and welcome change, putting the UAE on par with most of the world.

From today, 18-year-olds have full legal capacity in the UAE. This means they can sign contracts, open their own bank accounts, and make legal decisions independently. Prior to the change the threshold was 21years.

For families with young adults here, this is worth being aware of. You may wish to make amendments to wills, so get in touch.

Private sector salaries. New payment deadline

If you employ people, or are employed in the private sector, this affects you.

Salaries must now be paid by the 1st day of each calendar month for the preceding month’s work. This is covered in Ministerial Resolution No. 340 of 2026.

There is no longer a grace period. The 1st of each month is now a strict deadline. An employer cannot delay by up to 15 days.

Late payment is a compliance breach under the updated Wage Protection System. Any transfer made after the 1st is officially flagged as a “delayed payment” by the Ministry of Human Resources and Emiratisation (MoHRE)

If you are an employer, you may need to review your payroll processes now, if you haven’t already.

Companies that delay payments by more than a few days risk fines starting at AED 1,000 per affected employee.

Serial offenders risk having their trade licence downgraded and then suspended, and referral to Public Prosecution.

Dubai Public Safety Law

A new Dubai-specific law introduces offences around public order, noise, and disruptive behaviour.

Practically speaking, this includes observing permitted swimming times at beaches and staying out of restricted areas. Nothing dramatically new in spirit, but now formally codified with enforcement powers for Dubai Police.

Criminal law updates

Courts now have clearer authority around travel bans.

They can impose, modify or lift them at defined stages of legal proceedings.

This improves transparency for anyone caught up in a legal dispute here. Separately, the Public Prosecution has expanded powers to open investigations without a formal complaint being made.

Note that only the courts or immigration can impose a travel ban. No company, employer, or bank can do that, despite what some may claim, or threaten. They have to apply to a court, stating valid legal grounds, for a ban to be imposed.

Other changes

  • The Central Bank of the UAE has banned all banks and financial institutions from using instant messaging platforms such as WhatsApp for customer services. This changed from 1st May.
  • VAT (5%) will be applied to road tolls (Salik) and public parking (Parkin), from 1st June.
  • Landlords can now apply for a credit score for prospective tenants. Etihad Credit Bureau’s Tenant Screening service, launched on the app, allows landlords to submit a credit score request. The prospective tenant will receive a notification on the UAE Pass platform and must give explicit consent before any data is shared.
  • Sheikh Mohammed Bin Rashid has issued a new law on shared housing in Dubai. Details are still being confirmed but this will have implications for residents in house-shares and landlords renting to multiple tenants.
  • From the 2026–27 academic year, the age cut-off date for new school admissions will move to 31st December, standardising admissions across schools. This only applies to new students. If you have young children starting school, check whether this affects their entry year.
  • If you sell a property in Dubai, the proceeds must now be paid into a UAE bank account in the name on the title deeds. No PoAs accepted and this will particularly affect overseas property owners.

Coming soon

A new Dubai Building Safety Law, focusing on building quality, safety, and sustainability. This will cover structural integrity, regular maintenance, and safe operation of all systems. It applies to all buildings across Dubai including those in free zones, whether built before or after the law’s enactment.

I write articles such as this one as part of the holistic personal financial planning service and that I provide to expats.

Plus, the general consumer, financial and legal information that I provide in The National newspaper, other media, and on the Facebook group British Expats Dubai.

Expert, qualified, professional advice on a range of issues including general financial planning, life and critical illness cover, investments and UK pensions, wills and inheritance tax planning, UK tax, offshore banking, citizenship programmes, currency transfers and more.

If you live in Dubai, the UAE, or anywhere in the GCC, please get in touch for friendly independent advice.

Please email me at keren@holbornassets.com or use this contact form.

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