UAE Legal Glossary

The terms that come up most often in UAE corporate, commercial and regulatory matters, explained in plain language. These are definitions, not legal advice.

Courts and jurisdictions

Abu Dhabi Judicial Department: The Abu Dhabi Judicial Department (ADJD) is the government body that runs the courts of the Emirate of Abu Dhabi. Abu Dhabi is one of the emirates that operates its own local judiciary rather than sitting under the UAE federal court system, and the ADJD administers its courts at first instance, appeal and cassation level. Cases there follow UAE civil law procedure, separately from the common law courts of the Abu Dhabi Global Market (ADGM) free zone. Courts Litigation Services
ADGM Courts — Abu Dhabi Global Market Courts: The ADGM Courts are the courts of the Abu Dhabi Global Market, a financial free zone in Abu Dhabi. They work in English along common law lines and are separate from Abu Dhabi's onshore courts, with a Court of First Instance and a Court of Appeal. ADGM is unusual in applying English common law directly, alongside its own regulations. Parties based outside the free zone can also agree in writing to have a dispute heard there. ADGM Courts
Civil law system: A civil law system is one in which the main source of law is written codes passed by the legislature, and a judge's task is to apply those codes to the facts. The UAE onshore courts follow this tradition: earlier judgments are influential but are not binding precedent in the way they are in common law countries. Proceedings are conducted in Arabic and rely heavily on written documents, with the court often appointing an independent expert to examine technical or accounting questions. This is different from the common law approach used in the DIFC and ADGM free zones.
Common law: Common law is the legal tradition, inherited from England, in which decisions of judges in earlier cases build up a body of binding precedent that sits alongside written legislation. Most of the UAE does not follow this tradition, but two financial free zones do: the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), each with its own English-language courts. A commercial dispute in the UAE may therefore fall under either tradition, depending on where the parties are established and what their contract says about jurisdiction.
Court of Appeal: The Court of Appeal is the second level of the court structure, where a party dissatisfied with a Court of First Instance judgment can have the case examined again. In the UAE onshore courts an appeal is generally a fresh review of both the facts and the law, so evidence and arguments can be revisited rather than only legal errors being checked. The court may uphold, vary or overturn the earlier judgment. The DIFC Courts and the ADGM Courts each have their own Court of Appeal. Courts Litigation Services
Court of Cassation: The Court of Cassation is the highest court in the local judicial systems of the emirates that run their own courts, including Dubai and Abu Dhabi. It reviews whether the lower courts applied and interpreted the law correctly, rather than re-hearing the facts of the dispute, and it can uphold a judgment or return the case for reconsideration. In the emirates that come under the federal judiciary, the Federal Supreme Court performs the equivalent final role. Courts Litigation Services
Court of First Instance: The Court of First Instance is the level at which a case is filed and decided for the first time, before any appeal. In the UAE onshore courts the case is presented mainly in writing and in Arabic, with documents in other languages filed together with a legal translation, and the court frequently appoints an expert to report on technical, construction or accounting issues before judgment. The DIFC Courts and the ADGM Courts each have their own Court of First Instance, operating in English. Courts Litigation Services
DIFC Courts — Dubai International Financial Centre Courts: The DIFC Courts are the courts of the Dubai International Financial Centre, a financial free zone in Dubai. They are independent of the Dubai onshore courts, conduct proceedings in English, and decide cases on common law principles under the DIFC's own body of laws. Their jurisdiction covers disputes connected to the DIFC, and parties with no DIFC connection may also agree in writing to have their dispute heard there. The structure includes a Court of First Instance, a Court of Appeal and a Small Claims Tribunal. DIFC Courts
Dubai Courts: Dubai Courts is the local court system of the Emirate of Dubai, which runs its own judiciary rather than sitting under the UAE federal courts. It is arranged in three levels: the Court of First Instance, the Court of Appeal and the Court of Cassation. Proceedings follow UAE civil law procedure and are conducted in Arabic, with documents in other languages filed alongside a legal translation. Dubai Courts is separate from the DIFC Courts, which serve the Dubai International Financial Centre free zone. Courts Litigation Services
Federal Supreme Court: The Federal Supreme Court is the highest court of the UAE federal judiciary and sits in Abu Dhabi. It is the final level of appeal for cases coming from the emirates that use the federal court system, and it also decides constitutional questions and disputes between emirates. Emirates with their own local judiciary, such as Dubai and Abu Dhabi, end their ordinary civil and commercial appeals at their own Court of Cassation instead.
Onshore and offshore jurisdiction: In the UAE, "onshore" (often called mainland) describes companies and disputes that sit under the federal and emirate-level legal system, licensed by the emirate's economic department and litigated in the local courts in Arabic. "Offshore" is used more loosely for company structures registered through certain free zone registries that are designed for holding assets rather than trading in the local market. Free zones sit between the two: each has its own registration authority, and the two financial free zones, the DIFC and ADGM, additionally have their own civil and commercial laws and their own English-language courts. UAE Offshore Company Formation
Small Claims Tribunal: The Small Claims Tribunal (SCT) is a division of the DIFC Courts that handles lower-value claims through a quicker and less formal procedure than a full trial. A claim qualifies if it falls within the financial limit set by the DIFC Courts' rules, or in some situations where the parties agree in writing to use the tribunal. Hearings are usually held in private and begin with a consultation before a judicial officer, who explores whether the parties can settle before the matter goes to a hearing. The ADGM Courts operate a comparable small claims procedure within their Court of First Instance. DIFC Courts

Setting up a company

Articles of Association: The Articles of Association are a company's internal rulebook. They set out how managers or directors are appointed and removed, how meetings and votes work, how shares may be transferred and how profits are shared. In the UAE, companies registered in free zones, including the DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market), normally have articles as their main constitutional document, and many free zone registrars publish a standard form that companies can adopt. Mainland companies more often set out the equivalent rules in a Memorandum of Association instead. Companies Set Up
Branch Office: A branch office is an extension of an existing company rather than a new company in its own right. It carries the parent company's name, and the parent remains responsible for what the branch does. Branches can be registered on the UAE mainland or in a free zone, by UAE and by foreign parent companies, and the activities a branch may carry on are drawn from those of its parent. A mainland branch of a foreign company is typically registered with the emirate's economic department and also involves the Ministry of Economy. Companies Set Up
Commercial Register: The commercial register is the official record of the businesses licensed in a particular jurisdiction, kept by the authority that issues their licences: the economic department of the emirate for mainland companies, or the registrar of the relevant free zone. An entry records details such as the trade name, legal form, licensed activities, managers and owners, and carries the registration number that appears on the trade licence. When something changes, such as a new manager, a new address or a transfer of shares, the entry is amended rather than replaced. The UAE also maintains a national economic register that draws licence information from across the emirates into one place. Companies Set Up
DED — Department of Economic Development: The DED is the government body in each emirate that licenses and regulates businesses operating on that emirate's mainland. It handles trade name reservation, initial approvals, the issue and renewal of trade licences, and the record of licensed companies. Dubai's department was renamed the Department of Economy and Tourism (DET), though the older abbreviation is still widely used; Abu Dhabi, Sharjah and the other emirates each have their own equivalent. A DED does not license companies inside free zones, which have their own registration authorities. UAE Mainland Company Formation
Free Zone: A free zone is a designated area of the UAE with its own registration authority that licenses the companies set up inside it. Free zone companies may be wholly owned by foreign shareholders, and each zone sets its own rules on licence types, office or desk space and visa allocations, with many zones built around a particular industry. Selling directly into the UAE domestic market from a free zone is restricted, and is commonly done through a distributor or a separately licensed mainland presence. Two financial free zones, the DIFC (Dubai International Financial Centre) and ADGM (Abu Dhabi Global Market), go further and have their own civil and commercial laws and their own English-language courts. UAE Freezone Company Formation
Local Service Agent: A local service agent, often shortened to LSA, is a UAE national, or a company wholly owned by UAE nationals, appointed to act as the point of contact with government bodies for certain foreign-owned mainland businesses, typically professional firms, civil companies and sole establishments. The agent holds no shares in the business, takes no share of its profits and has no role in running it; the arrangement is documented in a written agreement and usually paid as a fixed annual fee. This differs from a local sponsor, who is a shareholder. The agent is recorded on the licensing file of the business. Local Service Agent
Local Sponsor: A local sponsor is a UAE national, or a company owned by UAE nationals, who appears as a shareholder in a mainland company. Under the older ownership regime, a mainland limited liability company generally needed a UAE national holding at least 51 per cent of the shares. Since the reform of the foreign ownership rules, most commercial and industrial activities can be wholly foreign-owned and no sponsor is required for them, while a limited set of activities of strategic importance still carries Emirati ownership or participation requirements. Where the sponsor is a UAE-owned company rather than an individual, the arrangement is usually called corporate sponsorship. Local Sponsor Services
Mainland Company: A mainland company, sometimes called an onshore company, is one licensed by the economic department of the emirate in which it is registered, rather than by a free zone authority. It can deal with customers anywhere in the UAE and abroad without needing a local distributor, and can bid for government work. Common forms include the limited liability company (LLC), the sole establishment and the civil company. Most activities can now be wholly foreign-owned, with a limited number of activities of strategic importance still carrying Emirati participation requirements. UAE Mainland Company Formation
Memorandum of Association: The Memorandum of Association, or MOA, is the founding contract between the shareholders of a company. It records the trade name, the activities the company is formed to carry on, who the shareholders are and what each has put in, the share capital and how it is divided, and how the company is to be managed. For a mainland limited liability company it is signed by the shareholders and notarised. It is amended, again through the notary, when shareholders, capital or activities change. Companies Set Up
Offshore Company: A UAE offshore company, also called an international business company, is registered with a UAE offshore registry, such as those in Ras Al Khaimah or Jebel Ali, but is not licensed to carry on business within the UAE market. It is used mainly as a holding vehicle: to own shares in other companies, hold assets, or in some cases hold property, subject to the rules of the registry and of the relevant land department. It has no trade licence for local activity, no requirement for physical premises, and does not provide residence visas. Offshore companies must be formed and maintained through a registered agent approved by the registry. UAE Offshore Company Formation
Representative Office: A representative office is a restricted form of branch. It may promote and market the parent company's products or services, gather market information and act as a liaison with customers and authorities, but it cannot trade in its own right, sell, invoice or perform contracts. Like a branch, it is not a separate legal entity from its parent, which remains responsible for it. Representative offices can be registered on the mainland and in free zones, and can employ staff under their own registration. Companies Set Up
Share Capital: Share capital is the amount the shareholders contribute in return for their shares, stated in the company's constitutional documents and divided into shares of a set value. There is no single minimum figure that applies across the UAE: some free zones set minimums for particular licence types, and regulated activities such as insurance or financial services carry their own capital requirements. Share capital is not money that has to sit untouched in an account; once paid in it can be used in the business. Increasing or reducing it is a formal step recorded with the licensing authority. Corporate Services
Trade Licence: A trade licence is the permit that allows a business to operate in the UAE, issued by the emirate's economic department for a mainland business or by the free zone authority for a free zone business. It names the licence holder, the legal form of the business and the specific activities it may carry on; anything not listed on the licence is outside what the business is licensed to do. Licences are commonly grouped into categories such as commercial, professional, industrial and tourism. They run for a fixed period, usually a year, and are renewed. Companies Set Up
UBO — Ultimate Beneficial Owner: The ultimate beneficial owner is the real person who ultimately owns or controls a company, whether directly or through a chain of other companies, nominees or similar arrangements, as opposed to whichever name appears as shareholder on paper. UAE companies are generally required to identify their beneficial owners, keep a register of them alongside registers of shareholders and nominee directors, and file those details with their licensing authority and keep them current. The idea comes from anti-money-laundering rules, which aim to make the actual people behind a corporate structure visible to the authorities. Companies registered in the DIFC and ADGM are subject to equivalent requirements set by those centres. AML Compliance

Resolving disputes

Arbitral award: An arbitral award is the decision issued by an arbitral tribunal at the end of an arbitration. It resolves the dispute between the parties and is binding on them, in the same way a court judgment binds the parties to a case. An award is not self-executing in the UAE: the winning party applies to the competent UAE court to have the award recognised, after which it can be enforced against the losing party's assets. A UAE court hearing such an application reviews limited grounds for refusing recognition rather than re-hearing the merits of the dispute. Arbitration
Arbitration: Arbitration is a private way of resolving a dispute in which the parties appoint one or more arbitrators to decide it instead of going to court. It only applies where the parties have agreed to it, usually through an arbitration clause written into their contract before any dispute arises. In the UAE, arbitration is commonly used for commercial, construction and shareholder disputes, and proceedings can be held in a language the parties choose, including English. The result is an award rather than a judgment. Arbitration
DIAC — Dubai International Arbitration Centre: The Dubai International Arbitration Centre (DIAC) is an arbitration institution based in Dubai that administers arbitrations under its own set of rules. Parties select it by naming DIAC in the arbitration clause of their contract, and it then handles matters such as registering the case, assisting with the appointment of arbitrators and managing fees. DIAC administers the process; the arbitrators themselves decide the dispute. It is one of the institutions most often named in contracts governed by UAE law. Arbitration
Enforcement of judgments: Enforcement of judgments is the process of turning a court decision into an actual result, such as payment or the handing over of property, when the losing party does not comply voluntarily. Within the UAE, a judgment that has become enforceable is taken to the execution stage of the courts, which has powers to reach a debtor's assets. Judgments from another country are treated differently: a UAE court must first be asked to recognise the foreign judgment, and whether it will do so depends on treaties between the UAE and that country and on conditions set by UAE law. Arbitral awards from abroad follow a separate route, because the UAE is a party to the New York Convention on the recognition and enforcement of foreign arbitral awards. Courts Litigation Services
Execution proceedings: Execution proceedings are the stage that follows a judgment or a recognised award, in which the court is asked to enforce it against the losing party. In the UAE, this is handled by a dedicated execution part of the court, separate from the judges who decided the case. Measures available at this stage can include attaching bank accounts, seizing and selling assets, and other steps directed at a debtor. Execution is a distinct filing with its own procedure, not an automatic consequence of winning a case. Debt Recovery
Expert report: An expert report is a written opinion on technical, accounting, engineering or other specialist questions that a court needs help to assess. In UAE court proceedings it is common for the court to appoint an expert from an approved roster, who examines the documents, hears from both sides and then reports back to the court. The report addresses the technical issues put to the expert, not the legal outcome, and the court is not obliged to follow it. Parties may also commission their own reports to put before the court. Accredited Experts Reports
ICC arbitration — International Chamber of Commerce arbitration: ICC arbitration is arbitration administered by the International Chamber of Commerce, an institution used worldwide and often named in cross-border contracts. Parties choose it in advance by referring to the ICC in their arbitration clause, and the ICC then administers the case under its own rules, including scrutiny of the draft award before it is issued. ICC arbitration is used in the UAE where parties want an international institution rather than a local one. The seat of the arbitration, which determines which country's courts supervise it, is a separate choice from the institution. Arbitration
Injunction: An injunction is a court order requiring someone to stop doing something, or to do something, while a dispute is unresolved. The term comes from common-law systems and is used in the DIFC and ADGM courts, which operate in English on common-law lines. The onshore UAE courts, which follow a civil-law tradition, achieve broadly comparable results through different mechanisms, such as orders issued on petition and precautionary measures, which are more limited in scope than an injunction in a common-law court. The wording used therefore depends on which UAE court system a dispute is in. Orders on Petitions
Litigation: Litigation means resolving a dispute through the courts rather than privately. The UAE has two parallel court systems: the onshore courts, which apply UAE law and conduct proceedings in Arabic, and the courts of the financial free zones, the DIFC Courts and the ADGM Courts, which operate in English on common-law lines. Onshore proceedings are largely document-based, with written submissions exchanged through the court, and a case decided at first instance can generally be taken to higher levels of the court structure. Which court hears a dispute depends on factors such as where the parties are based and what their contract says. Courts Litigation Services
Mediation: Mediation is a process in which a neutral third person helps parties in dispute try to reach their own agreement. The mediator does not decide who is right and cannot impose an outcome; the result depends on the parties agreeing. In the UAE, mediation and other forms of amicable settlement are used both privately and through centres attached to the courts, and some categories of claim pass through an amicable settlement stage before proceeding. If mediation does not produce an agreement, the dispute continues to court or arbitration. Pre-Litigation Services
Precautionary attachment: A precautionary attachment is a court order freezing assets, such as bank accounts or property, so that they cannot be moved or sold while a claim is decided. It is a protective step, not a decision on the merits: the assets are held, not transferred to the applicant. In the UAE it is usually sought by an urgent application to the court, often decided without the other side being heard first, and the applicant is normally required to bring the substantive claim within a short period afterwards. The party whose assets are frozen can apply to the court to have the attachment lifted. Orders on Petitions
Settlement: A settlement is an agreement between parties that ends a dispute on agreed terms, instead of leaving it to a judge or arbitrator to decide. It can be reached before any proceedings start, or at any point after they begin, including on the steps of the court. Settlement terms are typically recorded in a written agreement covering what each side does and confirming that the dispute is closed. Where a settlement is reached during proceedings, it can be recorded by the court, which gives it a status that allows it to be enforced if a party does not comply. Pre-Litigation Services

Documents and attestation

Affidavit: An affidavit is a written statement of facts that the person making it swears or affirms to be true, signed in front of someone authorised to administer an oath, such as a notary public. It allows a person's account to be placed before a court or authority in writing rather than spoken in person. Affidavits are a standard feature of proceedings in the DIFC and ADGM courts, which follow common-law procedure; the onshore UAE courts work mainly from written pleadings and documentary evidence, where a declaration sworn before a notary serves a comparable purpose. Affidavit Drafting
Apostille: An apostille is a standard certificate attached to a public document confirming that the signature, seal or stamp on it is genuine, so the document can be used abroad. It is issued by a designated authority in the country where the document was issued; in the UAE that authority is the Ministry of Foreign Affairs. An apostille works only between countries that are party to the Hague Apostille Convention, of which the UAE is one, and where it applies it takes the place of the longer chain of embassy legalisation. It confirms the origin of the document, not the truth of its contents. Document Attestation Services
Attestation: Attestation is the process of having the signatures and stamps on a document confirmed as genuine by a series of official bodies, so that it will be accepted in a country other than the one that issued it. A foreign document intended for use in the UAE typically passes through the competent authorities of the issuing country, then the UAE embassy or consulate there, and finally the UAE Ministry of Foreign Affairs. Attestation says nothing about whether the contents of the document are accurate; it confirms only that the officials who signed and sealed it were genuine. Where the Hague Apostille Convention applies between the two countries, an apostille can replace that chain of steps. Document Attestation Services
Certified True Copy: A certified true copy is a photocopy of an original document that an authorised person has compared against the original and then stamped and signed to confirm the two match. It lets the original — a passport, a licence, a court judgment, a company document — stay with its owner while a verified copy is submitted to a bank, court or government department. In the UAE, copies are certified by notaries public, including private notaries licensed to carry out notarial work, and by various authorities within their own fields. Certification confirms only that the copy is faithful to the original; it does not verify the original itself. Certified True Copy Services
Hague Apostille Convention: The Hague Apostille Convention is an international treaty — formally the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents — under which member countries accept each other's public documents on the strength of a single certificate, the apostille. Instead of routing a document through embassies and consulates, the designated authority in the issuing country attaches the apostille and the receiving member country recognises it. The UAE is a member, so documents moving between the UAE and other member states can generally use the apostille route. The Convention covers public documents only, and only between countries that are party to it. Document Attestation Services
Legalisation: Legalisation is the longer, consular route for making a document issued in one country acceptable in another, carried out through embassies and consulates rather than by a single apostille certificate. For a foreign document to be legalised for use in the UAE, it is certified in the country of origin, then by the UAE embassy or consulate there, and then by the UAE Ministry of Foreign Affairs. For a UAE document going abroad, the order runs the other way: the UAE notary or issuing authority, then the Ministry of Foreign Affairs, then the destination country's embassy or consulate in the UAE. This route remains in use for countries that are not party to the Hague Apostille Convention. Document Attestation Services
MOFA Attestation — Ministry of Foreign Affairs: MOFA attestation is the stamp applied by the UAE Ministry of Foreign Affairs (MOFA) confirming the signatures and seals already on a document. Where a document issued abroad travels the consular legalisation route, the ministry's stamp is normally the last step before the document is used in the UAE; where the apostille route applies instead, the certificate issued in the country of origin generally takes the place of that chain. For a UAE document going abroad, the ministry stamps it before the destination country's embassy or consulate in the UAE. The stamp verifies the chain of officials behind a document rather than the truth of what the document says, and the same ministry, also seen written as MOFAIC from the name Ministry of Foreign Affairs and International Cooperation, is the UAE authority that issues apostilles. Document Attestation Services
NOC — No Objection Certificate: A No Objection Certificate (NOC) is a short letter in which one party states that it does not object to something another party proposes to do. NOCs are used across a wide range of UAE processes — a property developer confirming it does not object to a transfer, an employer or sponsor confirming it does not object to a step taken by an employee, a licensing authority confirming it does not object to an activity. There is no single statutory NOC form: what it must contain, and whether one is called for at all, depends on the authority, contract or policy asking for it. An NOC records consent to a specific act rather than a general permission. Consent Letters Drafting
Notarisation: Notarisation is the act of a notary public confirming, in the notary's own presence, that a document was signed by the people named in it and that they appeared to understand what they were signing. In the UAE this is carried out by notaries public within the courts and judicial departments of each emirate, and by private notaries — lawyers and firms licensed to perform defined notarial functions. Documents notarised in the UAE are generally required to be in Arabic or in a bilingual form that includes Arabic. Notarisation concerns how a document was executed, and is separate from attestation, which concerns whether a document will be recognised in another country. Private Notary Public
Power of Attorney (General): A general power of attorney (POA) is a document by which one person or company, the principal, authorises another, the attorney or agent, to act on their behalf across a broad range of matters. In the UAE, a POA intended for use before courts, government departments or banks is normally notarised and drawn up in Arabic or in bilingual form. Even where the wording is broad, UAE notaries and authorities commonly expect significant acts — such as selling property, transferring company shares or conducting litigation — to be stated expressly rather than read into general words. A power of attorney can normally be revoked by the principal, and it comes to an end on the principal's death. Private Notary Public
Power of Attorney (Special): A special power of attorney (POA), also called a specific POA, authorises the attorney to carry out a named act or a short list of named acts — selling a particular property, representing the principal in a particular case, signing a particular contract — and nothing beyond them. UAE authorities frequently look for this narrower form, because the act, the asset and the parties are identified on the face of the document. Like other POAs used in the UAE, it is normally notarised and prepared in Arabic or bilingual form, and one signed abroad is generally attested or apostilled and translated before use. A special POA usually comes to an end once the act it was granted for has been completed. Private Notary Public
Sworn Translation: A sworn translation, referred to in the UAE as a legal translation, is a translation produced by a translator licensed by the UAE Ministry of Justice, who stamps and signs it to certify that it corresponds to the source document. The courts and most government bodies in the UAE conduct their business in Arabic, so foreign-language documents placed before them are generally accompanied by such a translation. The translator's licence is what gives the translation official standing; a rendering by an unlicensed person, however accurate, does not carry it. Sworn translation is distinct from notarisation and attestation, and a single document may pass through more than one of these steps.

Compliance and regulation

AML — Anti-Money Laundering: Anti-money laundering (AML) is the body of laws, regulations and internal controls designed to stop money from criminal activity moving through the financial system. In the UAE it covers banks, exchange houses, insurers and finance companies, as well as designated non-financial businesses and professions such as real estate brokers, dealers in precious metals and stones, auditors and company service providers. Supervision is split between authorities including the Central Bank and other federal bodies, with the DIFC and ADGM financial free zones supervised by their own regulators. Typical AML duties involve identifying customers, monitoring transactions, keeping records and reporting suspicion to the UAE Financial Intelligence Unit; countering the financing of terrorism (CFT) is regulated alongside it. AML Compliance
CDD — Customer Due Diligence: Customer due diligence (CDD) is the process a regulated business follows to establish who it is dealing with, both at the start of a relationship and while it continues. It normally involves identifying and verifying the customer from reliable documents, identifying the ultimate beneficial owner behind a corporate customer, understanding the purpose of the relationship, and monitoring activity over time to see that it matches what was expected. In the UAE, CDD is a core anti-money laundering obligation for financial institutions and for designated non-financial businesses and professions. How much checking is done varies with the level of risk a particular customer or transaction presents. AML Compliance
Corporate Tax (UAE): UAE corporate tax is a federal tax on business profits, administered by the Federal Tax Authority (FTA). It applies to financial years beginning on or after 1 June 2023, with a headline rate of 9% on taxable income above AED 375,000 and 0% on taxable income up to that amount. Businesses in the free zones may qualify for a 0% rate on income that meets the conditions to count as qualifying income, while other income is taxed at the standard rate. Registration and annual filing apply to businesses within scope whether or not any tax ends up being payable. Tax Consultation
Data Controller and Data Processor: A data controller is the organisation that decides why and how personal data is collected and used. A data processor handles that data on the controller's behalf and under its instructions — an external payroll bureau, a cloud hosting provider or a mailing platform, for example. UAE data protection rules, both the federal regime and the separate laws applying inside the DIFC and ADGM, place different obligations on each role, with the controller carrying primary responsibility for lawful use of the data. The division of responsibilities between the two is normally recorded in a written agreement. Data Protection
EDD — Enhanced Due Diligence: Enhanced due diligence (EDD) is the deeper level of checking a regulated business applies where a customer or transaction carries higher money laundering risk. Higher risk can arise from a politically exposed person (PEP), an opaque or multi-layered ownership structure, a link to a high-risk country, or transactions that are unusually large or hard to explain. EDD typically adds steps such as establishing the source of wealth and source of funds, obtaining senior management approval for the relationship, and monitoring it more closely afterwards. It is applied on top of standard customer due diligence rather than instead of it. AML Compliance
ESR — Economic Substance Regulations: The Economic Substance Regulations (ESR) were UAE rules requiring entities that carried on certain relevant activities — holding company, headquarters, distribution and service centre, shipping, lease-finance, fund management, banking, insurance and intellectual property business — to show genuine activity in the UAE rather than a presence on paper. Substance was shown through factors such as staff and premises in the country, adequate expenditure, and the activity being directed and managed from the UAE, supported by a notification and a report for each financial period in scope. The regime was introduced in 2019 to align the UAE with international standards on harmful tax practices. Later amendments wound the regime back, so the notification and reporting obligations attach to earlier financial periods rather than to current ones. Compliance Advisory
GDPR — General Data Protection Regulation: The General Data Protection Regulation (GDPR) is the European Union's data protection law. It can reach a business based in the UAE with no European office, where that business offers goods or services to people in the EU or monitors their behaviour — an online store shipping to Europe, for instance, or a site tracking European visitors. Where it applies, it brings obligations covering lawful grounds for using personal data, transparency, security, responding to individuals' requests about their data, and notifying certain breaches. It is separate from UAE data protection rules and can apply at the same time as them. Data Privacy Law Advisory
goAML: goAML is the online reporting platform used by the UAE Financial Intelligence Unit, which sits within the Central Bank of the UAE. Financial institutions and designated non-financial businesses and professions register on the system and use it to file reports, including suspicious transaction reports (STRs) and suspicious activity reports (SARs). Registration on goAML is one of the standard anti-money laundering compliance steps for supervised businesses in the UAE, and supervisors treat it as a basic indicator of whether a business is inside the regime. The platform was developed by the United Nations Office on Drugs and Crime and is used by financial intelligence units in many countries. AML Compliance
KYC — Know Your Customer: Know your customer (KYC) is the practice of establishing and verifying who a customer is before providing services to them. It is the part of anti-money laundering compliance most people in the UAE meet directly: supplying a passport copy, Emirates ID, proof of address, or trade licence and ownership details when opening a bank account or engaging a professional firm. KYC records are refreshed periodically rather than collected once at the outset. The term is often used interchangeably with customer due diligence, although customer due diligence is the broader regulatory concept that KYC forms part of. AML Compliance
PDPL — Personal Data Protection Law: The Personal Data Protection Law (PDPL) is the UAE's federal law governing how personal data — information relating to an identified or identifiable individual — is collected and used. It sets out the grounds on which personal data may be processed, obligations on organisations covering security, transparency and transfers of data outside the country, and rights for individuals in relation to data about them. It applies across the UAE, while the DIFC and ADGM financial free zones each have their own separate data protection law applying within their own jurisdiction. Which regime governs a particular organisation depends largely on where it is licensed and established. Data Regulation & Compliance
Sanctions Screening: Sanctions screening is the process of checking customers, owners, counterparties and payments against lists of individuals and entities subject to restrictions. In the UAE this includes the United Nations Security Council consolidated list and the UAE Local Terrorist List, which fall under the Executive Office for Control and Non-Proliferation; businesses with international exposure frequently screen against other lists as well, such as those maintained by the United States, the European Union and the United Kingdom. Screening is normally carried out when a relationship begins and repeated as the lists are updated. Where a name matches, or may match, a listed party, defined freezing and reporting procedures are triggered. AML Compliance
VAT — Value Added Tax: Value added tax (VAT) is a consumption tax charged on most goods and services supplied in the UAE at a standard rate of 5%. It was introduced on 1 January 2018 and is administered by the Federal Tax Authority (FTA). Some supplies are zero-rated, meaning VAT is charged at 0%, and others are exempt, including certain financial services and bare land. Registration becomes mandatory once a business's taxable supplies pass AED 375,000 over the relevant period, with voluntary registration available above AED 187,500; registered businesses charge VAT on sales, recover it on eligible costs and file periodic returns. Tax Consultation

Employment and property

Ejari: Ejari (Arabic for "my rent") is the Dubai system for registering residential and commercial tenancy contracts with the Dubai Land Department. A registered tenancy produces an Ejari certificate and number, which is commonly required for utility connections, some visa procedures, and trade licence applications tied to premises. Registration also creates the official record of the tenancy relied on if a rental dispute is brought before Dubai's rental disputes body. Other emirates operate their own tenancy registration systems under their own names. Rental Disputes
Emiratisation: Emiratisation is the UAE government policy of increasing the number of UAE nationals employed in the private sector. The Ministry of Human Resources and Emiratisation (MOHRE) sets hiring targets for private companies above certain size thresholds, mainly in skilled roles, and monitors whether those targets are met. Employers that fall short may face financial contributions or other consequences set by the ministry. Nafis is the federal programme that supports the policy by subsidising salaries and training for UAE nationals working in private companies. Labour & Employment Law Advisory
End-of-Service Gratuity: End-of-service gratuity is a lump sum an employer pays a departing employee in the UAE private sector once the employee has completed at least one year of continuous service. It is calculated on the employee's basic salary rather than total pay, at 21 days' basic pay for each of the first five years of service and 30 days' basic pay for each year after that, with the total capped at two years' pay. It is sometimes called "severance pay", though it is a service-based payment rather than compensation for dismissal. In the Dubai International Financial Centre (DIFC), employers instead make monthly contributions to a regulated workplace savings scheme in place of gratuity. Labour & Employment Law Advisory
Freehold and Leasehold: Freehold and leasehold describe two different levels of ownership in UAE real estate. Freehold means the property is registered in the owner's name with no time limit, and can be sold, mortgaged or inherited; in Dubai and several other emirates, foreign nationals who are not GCC citizens may buy freehold only within designated areas. Leasehold means the holder has the right to occupy and use a property for a fixed number of years, commonly up to 99, after which the rights revert to the freehold owner. A leasehold interest of sufficient length is registered with the relevant land department in the same way as a sale. Real Estate Law Advisory
Labour Ban: "Labour ban" is the everyday term for a restriction recorded against a worker that prevents a new work permit being issued in the UAE for a period. It is an administrative consequence that can follow certain ways of leaving a job, and it is applied by the labour authority rather than by the former employer. It is distinct from an immigration or travel ban, which concerns entry to and exit from the country and is handled by different authorities. Free zones, and the DIFC and ADGM, operate their own permit regimes and their own rules on this. Employment Disputes
Limited-Term Contract: A limited-term contract, also called a fixed-term contract, is an employment contract that runs for a stated period and ends on a specified date unless it is renewed. Under the current UAE labour law, private sector employment contracts in the mainland must take this form, and they are registered with the Ministry of Human Resources and Emiratisation (MOHRE). Renewal for a further term is permitted, and consecutive terms count as continuous service for purposes such as end-of-service gratuity. Contracts can still be ended before the stated date on the grounds the law sets out. Employment Contracts
MOHRE — Ministry of Human Resources and Emiratisation: The Ministry of Human Resources and Emiratisation (MOHRE) is the federal authority that regulates private sector employment in the UAE mainland. It issues work permits, registers employment contracts, records wage payments through the Wage Protection System, oversees Emiratisation targets, and receives labour complaints before they reach the courts. Free zones administer work permits for companies registered with them, while the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have their own employment laws and their own authorities. Labour & Employment Law Advisory
Off-Plan Property: Off-plan property is real estate bought from a developer before construction is finished, based on plans, specifications and a payment schedule rather than a completed unit. In Dubai, off-plan sales are recorded on an interim property register maintained by the Dubai Land Department, and buyer instalments must be paid into a project escrow account that the developer can draw on only as construction progresses. The buyer's title is registered in the main property register once the project is completed and the unit is handed over. Other emirates operate comparable registration and escrow requirements through their own land departments. Real Estate Law Advisory
RERA — Real Estate Regulatory Agency: In Dubai, the Real Estate Regulatory Agency (RERA) is the regulatory arm of the Dubai Land Department and supervises the emirate's property market. Its remit covers the licensing of brokers and developers, project escrow accounts, owners associations and jointly owned property, and the framework governing residential rents in Dubai. RERA's authority does not extend beyond Dubai; other emirates regulate their own property markets through their own bodies, some of which use a similar name. Real Estate Law Advisory
Residence Visa: A UAE residence visa is the immigration status that allows a foreign national to live in the country for a set period, issued by the federal identity and citizenship authority or, in Dubai, by the General Directorate of Residency and Foreigners Affairs (GDRFA). Most residence visas are sponsored by an employer, a free zone, a family member, or through property ownership or one of the long-term visa categories. It is separate from a work permit, which authorises employment; a person working in the mainland private sector normally holds both. Residence is linked to an Emirates ID and has to be renewed before it expires.
Service Charges: Service charges are the fees owners of units in a jointly owned building or community pay towards the upkeep of the parts they share, such as lifts, corridors, pools, landscaping, security, insurance and a reserve fund for major repairs. They are set out in an annual budget prepared for the building or community and are charged in proportion to each unit's share, usually by area. In Dubai, service charge budgets are reviewed and approved by the Dubai Land Department, and collected funds are held in a designated account for the property. Service charges are separate from rent and from any utility bills for an individual unit. Real Estate Disputes
Strata: Strata is the term used in UAE real estate for the legal structure of a building or community divided into individually owned units plus shared areas owned in common by all the unit owners. UAE law refers to this as jointly owned property, and the arrangement is set out in a registered document governing the units, the shared areas, voting rights and the service charge budget. Day-to-day management of the shared areas rests with an owners association or an appointed management company, supervised in Dubai by the Dubai Land Department. The word comes from Australian property law and is used in the region mainly by developers and property managers. Real Estate Law Advisory
Unlimited-Term Contract: An unlimited-term contract is an open-ended employment contract with no fixed end date, continuing until either side terminates it. It was the common form of employment contract in the UAE mainland private sector under the labour law that applied before the 2022 reforms, and mainland contracts were subsequently moved onto fixed terms. The distinction still matters when reading older contracts, historic service records or commentary written before the change. The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) have their own employment laws, under which indefinite-term contracts remain available. Employment Contracts
Work Permit: A work permit is the authorisation that allows a named person to work for a named employer in the UAE. In the mainland private sector it is issued by the Ministry of Human Resources and Emiratisation (MOHRE); in a free zone it is issued by that zone's own authority. It is separate from a residence visa, which is the immigration status allowing a person to live in the country, although the two are normally applied for together. Because a permit is tied to one employer, moving to a new employer involves a new permit rather than a transfer of the old one. Labour & Employment Law Advisory