By Samer Abou Said -12 January 2023

Introduction

The UAE has introduced several legislative changes for the year 2023 similar to those we saw in

2022. We summarize in this article some of the changes, and we underline “some” because this

should not be considered a comprehensive list or the only significant amendments.

1. New UAE Civil Procedures Law

The UAE has issued a new Decree by Federal Law No.42 for the year 2022 for the promulgation

of Civil Procedures Law (new “CPL”) which repeals the old Civil Procedures Law, Federal Law No

11 for the year 1992 (old “CPL”). The new CPL came into force on 2nd January 2023.

The significant amendments include the following:

• All cases submitted before the court of the first instance are to be adjudicated by a sole judge. Under the old CPL, it used to be adjudicated by a single judge for cases under the value of AED 10M, and a 3-judge panel for cases above that value.
• Cases with a monetary value that does not exceed AED 500,000 cannot be appealed before the Court of Cassation. It used to be AED 200,000 under the old CPL.
• The period for appeal of a judgment to the Court of Cassation is 30 days reduced from 60 days under the old CPL.
• The court shall return 90% of the court fees paid by the claimant if it dismisses the case for lack of jurisdiction.

2. New UAE Evidence Law in Civil and Commercial Transactions

The UAE has issued a new Decree by Federal Law No.35 for the year 2022 for the promulgation

of Evidence Law in Civil and Commercial Transactions (new “Evidence Law”) which repeals the

old Evidence Law, Federal Law No. 10 for the year 1992. The new Evidence Law came into force

on 2nd January 2023.

The significant amendments include the following:

• Introduction of a standard of proof “more probable / more likely” if there is conflicting evidence in the case.
• Introduction of a wider scope for document disclosure in commercial disputes where a party may apply to the court to order the opponent to present evidence. This might be a game-changer to enhance good faith and efficient litigation and will assist parties immensely, subject to the court’s discretion.
• Party can rely on custom to establish their claim.
• Court-appointed experts are under an obligation, before commencing their mission, to disclose any relationship with the parties or interest in the case.

3. New UAE Commercial Transactions Code

The UAE has issued a new Decree by Federal Law No.50 for the year 2022 for the promulgation

of Commercial Transactions Law (new “CTL”) which repeals the old Commercial Transaction

Law, Federal Law No 18 for the year 1993 (old “CTL”). The new CTL came into force on 2nd

January 2023.

The significant amendments include the following:

• Reducing the legal age to practice commercial activities to 18 years down from 21 years.
• Reducing the cap on interest in commercial transactions in the absence of an agreement to 9% down from 12%.
• Prohibiting compounded interest as supplementary compensation in addition to the simple interest.
• Reducing the time limitation on bringing new claims to 5 years down from 10 years.

4. New UAE Criminal Procedures Law

The UAE has issued a new Decree by Federal Law No.38 for the year 2022 for the promulgation

of Criminal Procedures Law which repeals the old Criminal Procedures Law, Federal Law No. 35

for the year 1992. The new Criminal Procedures Law comes into force on 1 st March 2023.

The significant amendments include the following:

• Granting the public prosecution, the power to take conservatory measures regarding the suspected assets of the crime such as tracing it, locating it, freezing it, and/or appointing a custodian…etc.
• Introduction the concept of “plea bargain” by granting the public prosecution the power to offer plea bargains where the defendant makes a clear admission of culpability in exchange for reducing the penalty in certain felonies and crimes.

5. New UAE Unemployment Insurance Law

The UAE has issued a new Decree by Federal Law No. 13 for the year 2022 Unemployment Law

and Cabinet Resolution no. 97 of 2022 concerning the procedures and controls for implementing

the unemployment insurance scheme.

The Federal Law No. 13 of 2022 and Cabinet Resolution no. 97 of 2022 came into force on 01

January 2023 and stipulates the following:

• It applies to all employees in the private sector and federal government sector should subscribe except the following: investors, domestic workers, temporary contract workers, juveniles under the age 18, and retirees who receive a pension and joined new employment.
• The insured period of subscription in the unemployment insurance scheme should not be less than 12 consecutive months before they are entitled to the coverage.
• The insured must be committed to paying the monthly subscription which ranges between AED 5 and AED 10 per month.
  
• The insured should provide evidence of unemployment due to reasons other than resignation and the insurer should not be dismissed for disciplinary reasons according to the applicable laws.
• The amount of monthly compensation if the employee become unemployed is at a rate of 60% of the subscription salary for a maximum period of 3 months provided that the monthly compensation does not exceed AED 10,000 for the first category and AED 20,000 for the second category.



“Contents of this article are for general informational purposes only. It is not intended as professional counsel and should not be used as such.”