Policy update

Policy & Legal Updates

UAE Waives Patent Registration Fees for Students and People of Determination

The UAE Ministry of Economy and Tourism announced fee exemptions across 29 industrial property services under Cabinet Resolution No. 136 of 2026. The measure covers patent applications, industrial designs, utility certificates, and substantive examinations for student inventors and People of Determination. The ministry reported that utility certificate filings increased by 21.43 percent during the first half of 2026.

Policy & Legal Updates

UAE Labour Law Clarifies Rules on Employee Termination During Approved Leave

Under UAE labour law, employers may terminate an employee while on approved leave only for legitimate reasons and with written notice, according to legal guidance published in Khaleej Times. The statutory notice period commences only from the day after the worker's scheduled return date unless both parties agree otherwise. The required notice period must range between 30 and 90 days, and employees terminated without a valid reason may file a complaint with the Ministry of Human Resources & Emiratisation.

Policy & Legal Updates

UAE Implements Mandatory Supplier Due Diligence for Input VAT Recovery

Effective 1 October 2026, holding a valid tax invoice alone is no longer sufficient to recover input VAT in the UAE under FTA Decision No. 13 of 2026. Businesses must perform structured due diligence on suppliers and transactions to avoid denial of VAT deductions linked to supply chain evasion. Transactions over AED 375,000 on a rolling 12-month basis trigger enhanced verification requirements, including bank confirmation letters.

Policy & Legal Updates

US Imposes Sectoral Sanctions on Iran Car and Rail Industries Without Wind-Down

The US Treasury determined that Executive Order 13902 applies to Iran's automotive and rail sectors, effective October 1 with no wind-down period. The measures target Iranian manufacturers alongside international suppliers based in the UAE, Hong Kong, and mainland China. Foreign financial institutions facilitating transactions in these sectors now face secondary sanctions exposure.