UAE Cabinet

Policy & Legal Updates

UAE Ministry of Finance Caps E-Invoicing Non-Compliance Fines at Dh50,000

The UAE Ministry of Finance has introduced updated rules capping administrative penalties for electronic invoicing violations at Dh50,000 over 12 consecutive months. The amendment also eliminates penalties previously imposed on businesses for failing to report system failures. The revised framework aims to reduce compliance burdens ahead of the mandatory nationwide rollout scheduled for October 1, 2027.

Policy & Legal Updates

UAE Limits Individual Residents to Five Registered Vehicles Under 2027 Traffic Rules

Under Cabinet Decision No. 174 of 2026, individual residents in the UAE will face a limit of five registered vehicles starting January 1, 2027. Residents may hold up to two vehicles under standard terms, while registering additional vehicles up to the five-vehicle cap will require extra fees. The numerical cap applies to individual residents rather than companies, though fee levels and transition rules for existing owners remain unspecified.

Policy & Legal Updates

UAE Labour Law Guarantees Paid Leave and Compensation for Holiday Work

Article 28 of the UAE Labour Law guarantees all workers paid leave on official public holidays designated by Cabinet resolution. Employers that require staff to work during a public holiday must either grant a full replacement rest day or pay standard daily wages plus at least 50% of the basic wage. The choice between compensation options rests with the employer and cannot be reduced by agreement.

Policy & Legal Updates

UAE Deploys AI Control Tower to Supervise Federal Government AI Agents

The UAE has established an artificial intelligence control tower to monitor and log the actions of AI agents deployed across federal government services. Speaking at the World Economic Forum's Annual Meeting of Global Future Leaders in Dubai, Minister of State Omar Al Olama stated the system will undergo continuous human and AI auditing. The initiative supports the UAE Cabinet's mandate to shift 50 per cent of federal services and operations to agentic AI within two years.