Galadari Advocates & Legal Consultants

Introduction In a significant achievement, Galadari Advocates & Legal Consultants successfully represented a party to a UAE-seated ICC arbitration before the Dubai Court of Cassation resulting in a pioneering decision upholding the authority of arbitral tribunals to issue anti-suit injunctions. Anti-Suit Injunction granted by the ICC Tribunal In the underlying arbitration, the ICC tribunal issued an anti-suit injunction restraining the opposing party from initiating or continuing parallel court proceedings relating to matters governed by the arbitration agreement. Challenge before the Dubai Court of Appeal The injunction was challenged before the Dubai Court of Appeal in Case No. 8 of 2025. On 28 April 2025, the Court of Appeal annulled the order, holding that it violated the constitutional right of access to courts and UAE Federal Arbitration No. 6 of 2018 (“Arbitration Law”). Galadari filed an appeal before the Dubai Court of Cassation against the Dubai Court of Appeal’s Decision in Case No. 8 of 2025, arguing, inter alia, that: The anti-suit injunction was issued as a valid interim measure within the scope of Article 21(h) of the Arbitration Law; and As per the scheme and provisions of the Arbitration Law, the arbitral tribunal’s power to modify or revoke interim measures is exclusive, and any challenge must be made before the tribunal itself, not the local courts. Decision of the Dubai Court of Cassation In a landmark decision dated 3 July 2025, the Dubai Court of Cassation in Commercial Appeal No. 657 of 2025 reversed the Court of Appeal’s judgment and held, inter alia, that: Based on the text of Article 21 of the Arbitration Law, the legislator has granted the arbitral tribunal the authority to order any interim or precautionary measures it deems necessary as required by the nature of the dispute during the course of the arbitration proceedings; The decision in question (anti-suit injunction) was issued by the arbitral tribunal as an interim measure during its consideration of the arbitration case; and The cancellation, suspension, or amendment of any interim or precautionary measure issued by an arbitral tribunal during arbitral proceedings is a power reserved to the arbitral tribunal alone, and no other entity has the authority to interfere in this regard. The Court accordingly annulled the lower court’s ruling and dismissed the underlying challenge for want of jurisdiction, reinforcing the tribunal’s procedural autonomy. Why This Matters This decision represents one of the earliest authoritative rulings in mainland UAE affirming that arbitral tribunals seated in the jurisdiction may issue binding anti-suit injunctions. The judgment is likely to play an important role in challenging the prevailing view that anti-suit injunctions are inconsistent with UAE public policy and marks a step forward in the courts’ embrace of international arbitral norms. As counsel in these proceedings, Galadari is proud to have contributed to the evolving landscape of arbitration law in the UAE, and to a judgment that strengthens the jurisdiction’s standing as a modern, arbitration-friendly seat.   Authors: Shani Salim, Faizan Daud, Ahmed Kamel

Dubai has taken a significant step toward transforming its real estate market with the launch of the Dubai Land Department's (DLD) regulatory sandbox for tokenized property. This initiative, launched in early 2025, is designed to explore how blockchain can enable fractional ownership of real estate through tokenization. Tokenization in the real estate context refers to the process of converting ownership rights in a physical property into digital tokens recorded on a blockchain. Each token represents a specific share or interest in the underlying asset, allowing for fractional ownership that can be bought, sold, or transferred digitally. For example, a single property valued at AED 10 million could be divided into 10,000 tokens, with each token worth AED 1,000. These tokens can then be issued to multiple investors, enabling shared ownership of a high-value asset that would typically require substantial capital. Smart contracts—self-executing code built into the blockchain—govern the transfer of these tokens and ensure compliance with predefined rules, such as distributing rental income proportionately among token holders. By leveraging tokenization, Dubai is positioning itself at the cutting edge of property technology, enabling new investment models and enhancing transparency, efficiency, and liquidity in the real estate sector. The initiative aligns with the emirate's broader digital economy goals, including its Real Estate Sector Strategy 2033 and Economic Agenda D33. In March 2025, the Dubai Land Department (DLD) launched the pilot phase of its Real Estate Tokenization Project, marking a significant milestone in the emirate's pursuit of integrating advanced technologies into its property sector. This initiative, introduced under the Real Estate Evolution Space (REES) innovation drive, positions DLD as the first real estate registration entity in the Middle East to implement tokenization on property title deeds. The sandbox allows DLD to test the digitization of real estate assets into tradable blockchain-based tokens. These tokens would represent fractional ownership of physical properties. The pilot phase, conducted in partnership with the Dubai Future Foundation and the Virtual Assets Regulatory Authority (VARA), is open to a broad range of participants including developers, tech firms, property management companies, and investors. Tokenizing real estate offers numerous advantages for property markets, investors, and regulators alike: Fractional Ownership: Traditionally, real estate investment requires substantial capital, making it inaccessible to many. Tokenization allows for fractional ownership, enabling investors to buy a small percentage of a property. This democratizes access to high-value assets, allowing broader participation in the property market. Enhanced Liquidity: Real estate is typically a highly illiquid asset class. By converting properties into digital tokens that can be traded on regulated exchanges, tokenization brings stock-like liquidity to property investments. Investors can exit positions more quickly, without waiting months for a sale. Global Investor Access: Blockchain removes geographic barriers. Investors from anywhere in the world can access Dubai’s property market via digital platforms, increasing international investment inflows and expanding market reach. Lower Transaction Costs: Smart contracts automate many aspects of real estate transactions, from ownership transfer to income distribution. This reduces reliance on intermediaries such as brokers, notaries, and escrow agents, thereby lowering transaction fees. Transparency and Security: All token transactions are recorded on a tamper-proof blockchain ledger, offering end-to-end traceability. This improves trust, enhances due diligence processes, and significantly reduces the risk of fraud. Operational Efficiency: Real-time recordkeeping and automated compliance checks through smart contracts streamline the back-office burden for property managers, auditors, and legal teams. Programmable Income Distribution: Income from rent or sales can be distributed automatically to token holders via smart contracts, providing a seamless and efficient return mechanism for investors. These benefits align closely with Dubai’s ambitions to enhance the attractiveness, efficiency, and transparency of its real estate sector through technological innovation. Dubai’s sandbox integrates the efforts of several regulatory authorities: DLD ensures that tokenized property aligns with existing land and title registration laws. VARA oversees the issuance, trading, and custody of the virtual tokens representing real estate assets. The Central Bank of the UAE is a key collaborator in the DLD’s Real Estate Tokenization Project, ensuring that the initiative aligns with national financial regulations and supports the integration of blockchain technology into the country's broader economic framework. The Dubai Future Foundation (DFF) plays a central role in this ecosystem by serving as the government’s innovation engine. DFF is responsible for incubating emerging technologies and supporting public-private collaboration. Within the context of the DLD tokenization sandbox, DFF provides not only the framework for pilot testing but also the platform for onboarding qualified startups, fostering experimentation, and aligning innovation with policy. DFF's involvement ensures that the sandbox is not just a regulatory trial, but also a launchpad for new business models in real estate. Through programs like the Dubai Future Accelerators, the foundation matches innovative companies with government stakeholders to co-create next-generation solutions. In the case of real estate tokenization, this means helping startups develop the tools, smart contracts, and investor platforms that will eventually plug into Dubai’s official land registry system. It also facilitates regulatory readiness by ensuring participants in the sandbox understand the standards required by DLD, VARA, and the Central Bank. As a result, the innovation framework led by DFF ensures a seamless bridge between vision and execution, fostering an environment where real estate innovation can be tested safely and scaled rapidly. Dubai aims to become a leading hub for blockchain and digital assets, and real estate tokenization is a logical extension of this vision. By enabling property to be bought and sold digitally, the initiative supports D33's focus on innovation-driven economic growth. Tokenization helps attract international investors and tech entrepreneurs while boosting the liquidity and accessibility of one of Dubai’s most important sectors: real estate. Several leading developers have already begun tokenizing property. Damac has partnered with blockchain platform MANTRA to tokenize $1 billion in assets, while MAG Group is working on a $500 million tokenization of the Keturah Reserve project. Internationally, similar efforts have occurred in Switzerland (Blockimmo), and the U.S. (Aspen St. Regis Resort), with Dubai now aiming to lead by institutionalizing these efforts within a clear regulatory and legal framework. By focusing specifically on real estate and leveraging institutional support, Dubai offers a more sector-specific and collaborative approach. Dubai’s real estate tokenization sandbox represents more than an experimental framework—it is a strategic platform for reimagining how property is owned, traded, and invested in. By integrating blockchain technology with a robust regulatory and innovation framework, Dubai is creating the conditions for a more dynamic, inclusive, and globally accessible real estate market. The collaboration between DLD, VARA, and the Central Bank ensures that the initiative is not only technologically advanced but also legally sound and investor-friendly. This sandbox builds upon Dubai’s legacy as a global hub for innovation and real estate by offering a forward-looking model that other jurisdictions are only beginning to explore. It addresses long-standing challenges in the real estate sector, such as illiquidity, high transaction costs, and barriers to entry, while aligning with broader national goals. For developers, technology firms, and investors worldwide, this is an opportunity to be part of a transformative ecosystem—one that blends real-world assets with the power of decentralized finance. As the sandbox matures, the insights and standards it generates could shape not only the future of Dubai’s property sector but also set a global benchmark for tokenized real estate transactions. With regulatory clarity, cross-sector collaboration, and a readiness to scale, Dubai is charting a path toward a more efficient, transparent, and accessible real estate economy. Author: Amir Zafar Khan

As we step into 2025, the DIFC Courts continue to solidify their role as one of the most sophisticated commercial courts globally.  No longer just a jurisdiction for companies with ties to Dubai, the DIFC Courts are increasingly the venue of choice for sophisticated parties looking for a neutral, efficient, and common-law forum to resolve high-stakes commercial disputes. This update breaks down three major developments in the jurisdiction over the course of 2024: A Mature Common Law Jurisdiction. The amendments to the Law on the Application of Civil and Commercial Laws mark a pivotal step in solidifying the DIFC’s status as an independent common law jurisdiction. A Global Enforcement Hub. In a landmark ruling, the DIFC Court of Appeal overturned Sandra Holding, confirming its freestanding jurisdiction to issue worldwide freezing orders in support of foreign proceedings, even where there is no direct connection to the DIFC and proceedings are still pending. A New Conflicts of Jurisdiction Tribunal. Previously criticized for enabling delay tactics, the long-awaited successor to the Joint Judicial Committee brings much-needed clarity to the jurisdictional boundaries between the DIFC and onshore Dubai courts. These developments reinforce the DIFC’s status as a world-class legal hub, enhancing its role as a bridge between emerging markets and established global economies. From Deference to English Law to the Development of a Distinct DIFC Common Law The enactment of DIFC Law No. 8 of 2024 (the ‘Amendment Law’) marks a significant shift in the DIFC’s legal framework, moving from reliance on English law to an increasingly autonomous common law jurisdiction.  One of the most notable changes is in Article 8(2)(e), where English law is no longer the final fallback.  The previous version of this statute directed DIFC Courts to apply “the laws of England and Wales” when no other law was identified.  In contrast, the final version now makes DIFC Law the ultimate governing framework, reinforcing the jurisdiction’s independence. The Amendment Law also departs significantly from the proposed draft circulated earlier in 2024 (the ‘Draft Amendment Law’).  Indeed Article 8A(3) appeared in the Draft Amendment Law to reinforce the role of English law by allowing DIFC Courts to adopt English common law doctrines unless expressly excluded.  The Amendment Law is less emphatic, simply stating that the DIFC Courts “may have regard” to the common law of England and Wales, as well as the law of “other common law jurisdictions.” It is submitted that the solution adopted in the final version of the Amendment Law is most suited to the role the DIFC has played—and will continue to play—in the future.  The DIFC legal community is an amalgam of practitioners from different legal traditions, and its (codified) laws draw from multiple sources— for example, its DIFC contract and arbitration laws are based, respectively, on the UNIDROIT Principles of Commercial Contracts 1994 and the UNCITRAL Model Law on International Commercial Arbitration. Article 40(2) of the Law of Damages and Remedies provides for U.S.-style punitive damages, although this is rarely used in practice.  This is recognized by the new Article 8B(3), which provides that where a DIFC Statute is based on an international model law, its interpretation may also be guided by international jurisprudence interpreting and applying such international model law, as well as interpretative aids and commentary published by international bodies regarding the international model law. While English legal principles remain relevant, the DIFC is now clearly charting its own path, developing its own body of common law rather than merely transplanting English precedent.  The DIFC is no longer just an extension of English legal thought but a mature, self-sustaining jurisdiction, shaping its own common law tradition in response to global financial and commercial needs. The DIFC as a Global Enforcement Hub after Carmon Reestrutura v. Antonio Joao The DIFC Court of Appeal’s decision in Carmon Reestrutura v Antonio Joao [2024] DIFC CA 003 marks a significant shift in the court’s approach to worldwide freezing orders.  Overturning Sandra Holding v Al Saleh [2023] DIFC CA 003, the court held that the DIFC can grant such orders in support of foreign proceedings, even when the dispute has no direct connection to the DIFC.  This raises a broader question: would the DIFC be willing to provide interim relief in support of foreign proceedings, even where there are no assets or parties in Dubai or in the UAE? In Carmon Reestrutura, the claimant alleged the misappropriation of USD 20 million, with some funds traced to Emirates NBD.  The DIFC initially granted a freezing order in support of proceedings in Hong Kong, but this was set aside following Sandra Holding, which had restricted DIFC jurisdiction in the absence of a clear connection to the DIFC.  On appeal, the Court of Appeal reversed course, holding that the DIFC’s power to recognize and enforce foreign judgments necessarily includes the ancillary power to prevent asset dissipation.  Drawing on Mercedes-Benz AG v Leiduck [1996] and PT Bayan Resources TBK v BCBC Singapore Pte Ltd (2015), the court emphasized that freezing orders are crucial to preventing enforcement from being frustrated. This decision positions the DIFC Courts as a potential global enforcement hub.  Could creditors use the court to secure assets in states that are parties to the Riyadh Arab Agreement for Judicial Cooperation, or in countries with which the UAE has in place bilateral treaties for the enforcement of judgements? The DIFC's common law system, procedural efficiency, and recognition of international enforcement principles could make it a preferred venue for creditors facing enforcement challenges in civil law jurisdictions The question now is how far this reasoning will extend.  If creditors begin testing the DIFC’s role in cross-border enforcement, Carmon Reestrutura may be just the beginning of a broader shift, positioning the DIFC as a key jurisdiction for securing and enforcing international judgments. Clearing the Bottleneck: the New Judicial Authority On April 3, 2024, the Ruler of Dubai issued Decree No. 29/2024 establishing the Judicial Authority for Resolving Jurisdictional Conflicts Between DIFC Courts and Judicial Authorities in Dubai (the ‘Judicial Authority’), replacing the Joint Judicial Committee (‘JJC’) that had been created under Decree No. 19/2016 to tackle abuse of the DIFC’s conduit jurisdiction.  The new framework ensures that jurisdictional disputes between the DIFC Courts and other UAE judicial bodies are resolved efficiently, eliminating procedural tactics that have historically delayed proceedings and undermined the credibility of Dubai’s legal system. Under the previous system, litigants frequently exploited jurisdictional conflicts to stall proceedings, creating uncertainty and procedural paralysis.  The lack of binding precedent meant that similar cases could produce inconsistent rulings, further encouraging delays.  The new Judicial Authority eliminates these inefficiencies by serving exclusively as a final arbiter of jurisdictional conflicts, stripping away advisory functions that previously bogged down decision-making.  Crucially, its decisions now carry binding precedential effect, ensuring consistency and predictability in future cases. Exclusive Judicial Function: The Judicial Authority no longer serves an advisory role, focusing solely on resolving jurisdictional disputes. However, Article 4 allows the Ruler or Chairman to assign additional duties if required. Binding Precedent: the Judicial Authority decisions now set legal principles that all Dubai courts, including the DIFC Courts, must follow (Article 9(b)). This prevents inconsistent rulings and limits opportunities for forum shopping. Automatic Stay of Proceedings: this is a departure from the position under Lakhan v. Lamia [2021] DIFC CA 001, where a “genuine conflict” was required to impose a stay. Under the new system, court proceedings and execution actions are automatically stayed, and limitation periods are suspended as soon as a case is referred to the Judicial Authority.  This prevents parties from using parallel litigation to frustrate enforcement. Since the Judicial Authority became operational in July 2024, it has already rendered 12 decisions, thus it is already working at a much faster pace than in the previous system.  This development reinforces Dubai’s reputation as a credible and efficient legal hub, preventing jurisdictional conflicts from being used as a tool for procedural impropriety. Summing Up The DIFC Courts have evolved.  No longer just a niche jurisdiction catering to businesses with ties to Dubai, they are fast becoming a global judicial powerhouse—a court of choice for high-stakes commercial disputes, where speed, predictability, and enforcement capability define the playing field. The Carmon Reestrutura ruling positions the DIFC as a potential global enforcement hub, capable of issuing worldwide freezing orders even in cases with no direct ties to the jurisdiction.  The Amendment Law cements the DIFC’s evolution into a fully independent common law system, free from automatic deference to English law.  And with the new Judicial Authority, Dubai has finally closed the door on procedural abuses that stalled cases and eroded confidence in its legal system. All considered, these developments eliminate uncertainty and reinforce the DIFC’s status as a court that doesn’t just compete with the world’s best—it sets the standard. Authors: Rodrigo Carè and Hrishita Roy

Galadari Advocates & Legal Consultants is thrilled to announce the appointment of Rodrigo Carè as Senior Counsel in its Dubai office.With an impressive track record spanning over a decade, Rodrigo brings a wealth of expertise in international disputes and offshore litigation, particularly within the oil & gas and construction sectors. He has extensive experience representing sovereigns and state-owned enterprises (SOEs) in contractual disputes and investment treaty arbitration. Before moving to Dubai, Rodrigo practiced with the international disputes teams of top U.S. law firms in Paris and London and served in-house with Eni SpA’s midstream legal division, focusing on LNG and natural gas arbitrations and price reviews. He has acted as  counsel or arbitrator in over 40 high-value arbitration and litigation proceedings under the auspices of arbitral institutions such as the International Chamber of Commerce (ICC), the London Court of International Arbitration (LCIA), the International Centre for Settlement of Investment Disputes (ICSID), and the Dubai International Arbitration Centre (DIAC), as well as before the DIFC and ADGM’s international commercial courts.  He sits on DIAC’s panel of arbitrators and is a member of the Association of International Energy Negotiators (AIEN). Rodrigo shares his excitement about joining the Galadari team: “Galadari’s outstanding track record in the oil & gas sector and integrated one-firm approach made this a natural next step to enhance my growing practice serving the energy industry in the region. I look forward to working with Galadari’s highly accomplished corporate, regulatory, and disputes teams to deliver strategic, results-driven strategies for our clients during this pivotal time for the energy industry." Managing Partner Ahmed Galadari expressed his confidence in Rodrigo’s addition to the team: “Rodrigo’s deep expertise in arbitration and litigation will significantly strengthen our capabilities in these critical areas. His broad international experience, along with his strategic insight, is a great fit for our firm and will enhance the service we offer our clients." Rodrigo is admitted to practice law and holds full rights of audience before the courts of New York, Italy, and the Dubai International Financial Centre (DIFC). He earned his legal education at Georgetown University Law Center (U.S.A.) and Roma Tre University (Italy). Fluent in English, French, and Italian, Rodrigo is well-equipped to manage the firm’s diverse, international clientele. We are pleased to welcome Rodrigo Carè to Galadari and look forward to the value he will bring in supporting our mission to deliver outstanding legal services across the region.  

Galadari Advocates & Legal Consultants is proud to announce the election of Bassem Pierre Daher as Senior Partner of the firm following a unanimous vote by the management committee. This milestone reflects Galadari’s steadfast commitment to leadership excellence and its strategic vision for continued growth within the Middle East’s dynamic legal sector. Bassem has been a leading figure at Galadari for nearly four years, bringing an exceptional blend of legal and executive experience to the firm gained in Europe, the United States and the Middle-East. His distinguished career includes serving as President & CEO (Americas) of IQ-EQ, a global leader in investor and fund services, and holding key roles at prestigious firms such as Bonn Schmitt Steichen and Bridgedawn. Bassem holds independent board memberships across various industries and is a sought-after speaker at high-profile conferences, contributes to prominent media outlets, and shares his expertise as a lecturer at the Government of Dubai Legal Affairs Department. Bassem’s international background and track record of success in leadership, law, and strategic management, positions him uniquely to elevate Galadari’s presence, influence and reach locally and internationally. Ziad Galadari, Chairman of Galadari Advocates & Legal Consultants, shared his thoughts on the appointment:   “Bassem’s election as Senior Partner is a testament to his exceptional expertise and alignment with our firm’s vision. His leadership will be instrumental in driving Galadari forward as we strengthen our position as a leading firm in the region. We are confident that his contributions will continue having a transformative impact on our clients, team, and the broader community.”  Expressing his enthusiasm for the role, Bassem Pierre Daher stated:   “Over the past four years, we have achieved significant milestones and made remarkable strides in elevating Galadari’s standards and impact. I am excited to continue building on this momentum, and together we will further establish Galadari as a firm grounded in world-class business ethics, operational excellence, and forward-thinking practices. By embracing cutting-edge technology, fostering a progressive approach to recruitment, and bolstering our client-centric strategies, we aim to set new benchmarks in the legal industry for the coming 100 years and beyond.”   As Senior Partner, Bassem will focus on steering Galadari’s strategic direction, expanding its regional and global positioning and client portfolio, enhancing its legal services palette, and cultivating its talent pool. His unparalleled combination of leadership acumen and legal expertise will be pivotal in shaping the next chapter of the firm’s success.  

Galadari Advocates & Legal Consultants is delighted to announce the addition of Jong Suk Kim as Senior Counsel in Dubai office. Bringing over 19 years of extensive legal experience, Jong Suk specializes in a range of contentious and non-contentious cross-border matters, with focused expertise in dispute resolution, including international arbitration and construction disputes. Prior to joining Galadari, Jong Suk held a senior role at a reputable international law firm, where he honed his expertise in construction law and complex cross-border disputes. His work in advising on projects across the Middle East, CIS, Central Asia, and Southeast Asia has shaped his career, making significant contributions to the legal landscape in these regions, and earning him recognition in the Legal 500 EMEA directory for his construction expertise. Reflecting on his move to Galadari, Jong Suk shared, "Joining Galadari marks an exciting new chapter in my career. I look forward to contributing to the firm’s legacy by supporting our clients' strategic objectives." "Jong Suk’s extensive experience and proactive approach to legal challenges will greatly enhance our capabilities in dispute resolution and international arbitration. His in-depth knowledge and strategic acumen are assets that will complement our team’s strengths, " said Managing Partner Ahmed Galadari. Jong Suk Kim holds a JD degree from Rutgers School of Law-Camden and is admitted to practice in New Jersey and New York, as well as a Government of Dubai Legal Affairs Department License (DLAD). He is proficient in both English and Korean, which positions him well to manage a diverse clientele. We warmly welcome Jong Suk Kim to our team and anticipate his adept skills in enhancing our delivery of superior legal services across the region.  

This nomination is a testament to Galadari's commitment to providing top-notch legal services and its expertise in the maritime industry,supported by a highly skilled team dedicated to upholding the highest standards of legal practice. "We are deeply honoured by this nomination. It reflects the passion and hard work our team puts into every case and client relationship. This recognition motivates us to continue delivering exceptional legal solutions," stated Essa Ziad Galadari, Director of Galadari’s Dubai office. The Maritime Standard Awards are renowned for their rigorous and meticulous selection process, with a panel of judges drawn from across different sectors of the industry. Galadari's shortlisting is a significant acknowledgement from the maritime sector, representative of its outstanding service and dedication.  

The UAE’s insurance sector has seen a major transformation with the introduction of Federal Decree Law No. 48 of 2023 concerning the regulation of insurance activities.Published on July 25, 2024, the New Insurance Law strengthens the regulatory framework by transferring oversight of insurance operations to the Central Bank of the UAE (CBUAE), following the merger of the UAE Insurance Authority with the CBUAE under Federal Decree Law No. 25 of 2020. The New Insurance Law brings the UAE’s insurance market in line with international standards and provides clarity on regulatory requirements, especially for insurance brokers. Key Changes in Licensing and Regulatory Control of Brokers Under Article 65 of Federal Decree Law No. 48, the licensing of insurance brokers is now more stringent, with the CBUAE tasked with regulating all brokers operating within the UAE. This builds upon the framework of the old law but adds specific requirements and broader regulatory controls. Brokers can now apply for one of three distinct categories of licenses, which must be chosen based on the broker’s area of expertise and focus: Primary Insurance Operation – for those dealing directly with clients on standard insurance products. Reinsurance Operation – covering brokers engaged in arranging reinsurance contracts. Dual Operations – where the broker provides both primary insurance and reinsurance services. To be eligible for these licenses, brokers must have a minimum of five years of relevant experience in their chosen field, a significant requirement under the New Insurance Law. This ensures that brokers are equipped with the necessary expertise to manage risks and provide professional services to their clients, ensuring that only qualified professionals are active in the UAE’s insurance market. Capital Requirements and Financial Safeguards One of the notable developments introduced under the New Insurance Law is the specific capital requirements imposed on brokers, aimed at ensuring their financial stability and ability to absorb operational risks. Although the minimum capital and bank guarantee requirements for insurance brokers and foreign branches have not changed, it has been clarified that the bank guarantee is now separate from the minimum capital requirement. This raises the issue of whether brokers will need to manage these two requirements independently and what effect this will have on their balance sheets. However, full clarification on this matter is still pending. In addition, and according to Article 65 of the New Insurance Law, anyone intending to operate as insurance agents, brokers, loss adjusters, consultants, actuaries, or health insurance claims managers—such as Third-Party Administrators—must obtain a license from the CBUAE. While this provision is reminiscent of Article 69 of the previous law, it explicitly includes Third-Party Administrators and allows the CBUAE the flexibility to broaden its licensing framework to encompass additional insurance-related professions. Prohibition of Non-Admitted Insurance and the Impact on Brokers A key element of the New Insurance Law is the reinforcement of the prohibition on non-admitted insurance, outlined in Article 12. This provision prohibits insurance on assets or liabilities within the UAE from being brokered through unlicensed foreign insurers. Only insurers and brokers licensed by the CBUAE are permitted to issue policies covering risks within the UAE, ensuring that local regulation governs the market. Article 41(4) further strengthens this by declaring that insurance policies issued by unlicensed entities will be considered null and void. However, an important caveat is introduced in this article: even though such policies are void, injured parties may still have the right to claim compensation. This subtle addition provides a level of protection to the policyholder, ensuring that their interests are safeguarded even in the event of regulatory non-compliance. Regulation of Foreign Brokers and Representative Offices The New Insurance Law also sets out clearer provisions for the operations of foreign brokers and representative offices. Chapter 11 of Federal Decree Law No. 48 governs the licensing of representative offices for foreign insurers, requiring them to obtain a license from the CBUAE. Although the law focuses on regulating marketing activities rather than direct underwriting, there is still some ambiguity regarding the full scope of activities allowed for these representative offices, as regulatory guidance from the CBUAE is awaited. This is an important area for foreign brokers who operate in the UAE through branches or representative offices, as it highlights the growing emphasis on compliance with local regulatory requirements. Compliance and Enforcement The New Insurance Law significantly enhances the enforcement powers of the CBUAE, providing the regulator with extensive tools to ensure compliance. Violations of the law, including failure to meet capital requirements, misleading regulatory submissions, or engaging in unlicensed activities, can lead to the suspension or revocation of licenses, fines, and other penalties. However, the law goes further by establishing that such violations may also result in civil or criminal liability, meaning that brokers and other insurance professionals may face serious consequences beyond regulatory sanctions. Conclusion: A New Era for Insurance Brokers in the UAE The introduction of Federal Decree Law No. 48 of 2023 represents a transformative shift in the UAE's regulatory landscape for insurance brokers. With stricter licensing requirements, higher capital thresholds, and an expanded scope of regulatory control, the New Insurance Law seeks to raise the standards of professionalism and financial resilience within the sector. Brokers now face increased scrutiny from the CBUAE, but they also benefit from a clearer regulatory framework that brings greater stability and confidence to the market. For brokers and other professionals in the insurance sector, the New Insurance Law mandates a proactive approach to compliance, ensuring that they meet the enhanced requirements within the transitional six-month period before the law fully comes into force. The CBUAE’s rigorous oversight, coupled with the law’s detailed provisions on non-admitted insurance and unlicensed activities, positions the UAE as a leading jurisdiction for insurance regulation in the region. For further guidance on how these regulatory changes might impact your business, please contact our insurance advisory team, led by Partner. Fadi Hassoun.  

In a recent article published by Gulf News, Senior Associate Aeeda Ibrahim and Trainee Lawyer Rehab Demardash from Galadari Advocates & Legal Consultants shared their expertise on the pros and cons of taking a loan from your employer in the UAE. The article, titled "Taking a loan from your employer? Pros and cons you should keep in mind," delves into the intricacies of loans provided by an employer, which are financial advances some UAE companies may offer to their employees. These loans are typically repaid through salary deductions over an agreed period. Ibrahim emphasized that providing such loans is not legally mandated in the UAE; it is at the discretion of the employer and often subject to internal company policies. "The employer providing loans to employees is not obligatory by law, and companies are not forced to provide loans to their employees. It is an initiative by companies to help their employees, which is usually subject to the internal regulations of companies," she stated. Demardash highlighted the potential benefits of employee loans, noting that they can help workers reduce financial burdens and provide stability at work. "It helps the worker reduce the burdens of financial life and helps him or her have stability at work. There is flexibility in paying instalments in terms of the period that the employer may grant and the worker pays the principal amount of the loan without interest and without incurring large sums," she said. The article also discussed the legal framework surrounding employee loans in the UAE, with Demardash citing Article 25 of the UAE Labour Law, which stipulates that the maximum percentage of a salary an employer can deduct as instalments is 20 percent. Galadari Advocates & Legal Consultants is proud to have its experts contribute to this informative article, providing valuable insights for UAE employees considering taking a loan from their employer. The firm's commitment to delivering exceptional legal services and expertise is once again demonstrated through this collaboration with Gulf News. Read the full article here