29 November, 2020
Financial Implications of new UAE Laws for Small Businesses
The President of UAE, His Highness Sheikh Khalifa Bin Zayed Al Nahyan announced changes to the federal laws and penal codes in UAE, with impact on various aspects of society, finance and business.
The UAE has always been welcoming expats into the world of business and employment, with a seamless way of blending them into the region. The society, business environment, entertainment, tourism, healthcare and the entire ecosystem have been kept largely sacrosanct, with expats abiding by the laws of the land when it comes to financing, business and personal life.
The recent presidential decree provided a path-breaking change to the current legal framework. More specifically, some aspects of civil life such as marriage, divorce, public decorum, wills and inheritance have been brought under the gamut of new changes.
Under these new laws, expat inheritance will be treated as per the choice of the expat – whether it would be as per the law of their country, or as per the UAE law. In the event of no such specification, the law of their country will be applied by default on the inheritance for an expat. However, for an expat owning property in UAE, the laws of UAE will become applicable.
The above laws, once applied, will provide the much needed impetus to the UAE as a destination for doing business. The main impact on small businesses will be positive, especially when it comes to the subject of business inheritance.
It is also advised by experts that in spite of recent changes, it would be prudent to have a will in place for the distribution of assets after one’s lifetime.
Source : Gulf News