Legal And Regulatory Updates May, 2025

Dear Readers,

We're pleased to share the latest edition of our newsletter, your source for key legal insights, regulatory developments, and firm highlights. This month's issue features thought leadership from our attorneys on emerging legal trends, updates on critical regulatory changes, and expert commentary on issues shaping industries across the region.

You'll also find highlights from recent conferences where our lawyers have shared their perspectives, along with the latest recognitions we've received in legal rankings and awards.

Thank you for staying connected with us - we are proud to be your trusted source for legal news and strategic guidance.

Jimmy Haoula

Managing Partner
Jimmy.Haoula@bsalaw.com
+971 4 528 5555

In this issue

Events

• Fluidity 2025
• UAE 10th Arbitration and ADR Summit

News and regulatory updates

• Viral ChatGPT social media trends spark legal, ethical AI 'threat' as UAE experts warn of data risks
• Enforcement of Deportation and Travel Ban Orders Assigned to a Newly Formed Judicial Committee
• Understanding How Non-Resident Persons Create Nexus in the UAE for Corporate Tax Purposes
• Comparative Guide on Onshore vs Offshore Arbitration Seats in the UAE
• Emerging Common Law Influences in Recent UAE Court of Cassation Decisions
• Dubai Court of Cassation's Ruling on Gift Transactions Involving Debt-Encumbered Assets
• Legal Procedures for Profit Calculation and Distribution
• Key Provisions of the Newly Issued ADGM Employment Regulations 2024
• "Starting Up" on Dubai Eye 103.8
• Misuse of the Right to Litigate
• UAE's deal market and what lies ahead
• True Sale under UAE Law
• More investors turn to fractional ownership to enter booming Dubai property market
• Mastering the tax game: Proven strategies for businesses in the UAE and GCC

UAE Tax updates

• Cabinet Decision No. 34 of 2025 – Qualifying Investment Funds & Limited Partnerships Exemption
• Corporate Tax Guide – Interest Deduction Limitation Rules (CTGIDL1)
• Cabinet Decision No. 35 of 2025 – Nexus Determination for Non-Resident Persons
• Public Clarification – Crypto-Currency Mining (VATP039)
• Public Clarification – Barter Transactions (VATP042)

BSA Happenings

• BSA LAW celebrated its 24th anniversary

Awards and Accolades

• BSA LAW recognized in Legal 500 EMEA 2025 with 14 high rankings
• BSA LAW is an Award Winning Law Firm in the UAE in The Patent Lawyer Law Firm Rankings 2025

Events

Fluidity 2025

Fluidity 2025 is a two-day event designed to encourage regional expansion, business development, joint ventures, investment, and trade flows between the regions. The conference is focused on fostering economic partnerships between the Gulf Cooperation Council (GCC) and Sub-Saharan Africa's startup and tech ecosystems.

Frances-Yvonne Igweh, BSA's Partner and Head of Energy and Natural Resources shared her insights on Regulation, Compliance, and Governance in Emerging Markets.

UAE 10th Arbitration and ADR Summit

BSA LAW Partner Abdullah Ishnaneh represented BSA LAW at the UAE 10th Arbitration and ADR Summit.

Hosted by LEGAL PLUS Global, this annual event featured leading local and international experts discussing the latest trends and developments in arbitration and alternative dispute resolution.

Click the link to explore the key takeaways, click here.

News and regulatory updates

Viral ChatGPT social media trends spark legal, ethical AI 'threat' as UAE experts warn of data risks

As generative AI tools flood social media with viral trends mimicking the styles of iconic brands and artists, legal and technology experts are warning that a lack of clear regulation is exposing creators to copyright risks, data misuse and cultural erosion.

BSA LAW Associate Marina El Hachem is featured in Arabian Business recent article discussing creatives' rights and copyright protections being compromised in the rush for innovation.

To read the full article, click here.

Enforcement of Deportation and Travel Ban Orders Assigned to a Newly Formed Judicial Committee

Dubai Resolution No. 1 of 2025 has now been introduced to close the gap between conflicting judicial orders issued by different authorities against individuals who are subject to travel bans.

In this article BSA LAW Partner Asim Ahmed talks about newly established committee's powers and decision-making.

To read the full article, click here.

Understanding How Non-Resident Persons Create Nexus in the UAE for Corporate Tax Purposes

A major update for international investors, the Ministry of Finance, UAE has issued Cabinet Decision No. 35 of 2025 on the Determination of a Non-Resident Person's Nexus in the UAE for the purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. This new Decision replaces the earlier Cabinet Decision No. 56 of 2023 and brings clarity to a critical area of the UAE's corporate tax framework.

In this article BSA LAW Partner and Head of Tax Shamma AlFalahi explores the conditions under which a non-resident person establishes a nexus in the UAE.

To read the full article, click here.

Comparative Guide on Onshore vs Offshore Arbitration Seats in the UAE

BSA LAW senior associates Hadiel Hussien and Martin Khoshdel MCIArb have recently put together an informative comparative guide on onshore vs. offshore arbitration seats in the UAE.

When selecting an arbitration seat, the contracting parties are essentially submitting to arbitrate within one of the three jurisdictions - onshore seated arbitration, DIFC or ADGM. This choice directly impacts the courts that will oversee with curial and supervisory jurisdiction of the arbitration process and the procedural laws governing it, and it can influence various procedural aspects of an arbitration, including rights of appeal, availability of interim remedies, and grounds for challenging an award.

To read the full article, click here.

Emerging Common Law Influences in Recent UAE Court of Cassation Decisions

The UAE's legal system, long anchored in the civil law traditions of Sharia and continental codes, is slowly but surely embracing the common law influences and nowhere is this more vivid than in the country's arbitration landscape which has become the lifeblood of a nation thriving on international trade.

Through recent rulings from the Dubai and Abu Dhabi Courts of Cassation, BSA LAW Senior Associate Asma Siddiqui and Associate Akhil Jinesh explore this transformation, tracing UAE's journey from rigid formalism to a hybrid legal tapestry.

To read the full article, please click here.

Dubai Court of Cassation's Ruling on Gift Transactions Involving Debt-Encumbered Assets

A recent ruling by the Dubai Court of Cassation provides valuable insights into the enforceability of gift transactions executed by debtors with encumbered assets. The decision addresses the legal challenges that arise when a debtor transfers assets by way of a gift while those assets remain liable for significant debts.

In this analysis BSA LAW Partner Antonios Dimitracopoulos FCIArb and Senior Associate Martin Khoshdel MCIArb examine the ruling's background, key legal issues, and the broader implications for future transactions and litigation.

To read the full commentary, click here.

Legal Procedures for Profit Calculation and Distribution

BSA LAW litigation partner Asim Ahmed and associate Ahmed Labib dive into a significant shift in protecting the rights of partners in limited liability companies. General Authority of the Court of Cassation's in Abu Dhabi landmark decision reinforces confidence in the country's legal framework, making investment in limited liability companies more stable and appealing.

To read the full commentary, click here.

Key Provisions of the Newly Issued ADGM Employment Regulations 2024

The Abu Dhabi Global Market (ADGM) has recently issued the Employment Regulations 2024 ("2024 Regulations"), which came into force on April 1, 2025. These regulations establish minimum employment standards, rights, and obligations for employees and employers within the ADGM.

In this article Lara Barbary provides a comprehensive overview of the key provisions of the 2024 Regulations, focusing on what employers need to know, practical implications, compliance points, and a comparative analysis with the previous Employment Regulations 2019.

To read the full commentary, click here.

"Starting Up" on Dubai Eye 103.8

Senior Associate Nadia El Tannir took part in a show "Starting Up" on Dubai Eye 103.8 on Friday, 28 March 2025. During the panel talk discussion, hosted by Tom Urquhart, Nadia shared her insights into primary cause of business partners falling out, and highlighted key legal issues to watch out for when going into business with a business partner.

Misuse of the Right to Litigate

Misuse of the right to litigation refers to the unethical or illegitimate use of judicial processes with the intent to harm others or to secure personal or financial advantages without a valid legal basis.

In this article BSA LAW Senior Associate Saad Younes Elagawany addresses the reasons and consequences of litigation misuse.

To read the full article, please click here.

UAE's deal market and what lies ahead

BSA LAW Senior Partner Michael Kortbawi talks about the UAE's deal landscape in the first quarter of 2025 in the recent Law Middle East April issue.

Despite a complex global backdrop, including inflationary pressures and geopolitical uncertainties, the UAE continues to position itself as a preferred hub for strategic investments, cross-border partnerships, and innovative financing structures.

To read the full commentary, please click here.

True Sale under UAE Law

In their recent article BSA LAW partner Arsalan Tariq and associate Nil Acar explore the sale of receivables as part of the effective methods of financings.
In these transactions, a business entity that generates receivables through commercial operations sells the receivables for immediate cash consideration. The most important component of such transactions is achieving a 'true sale' of receivables.

To read the full commentary, please click here.

More investors turn to fractional ownership to enter booming Dubai property market

BSA LAW Senior Partner Michael Kortbawi is featured in The National News in their recent article about the fractional property investments, the shared nature and associated challenges in lowering liquidity and further disposal.

To read the full commentary, please click here.

BSA LAW Senior Partner Michael Kortbawi is featured in The National News in their recent article about the fractional property investments, the shared nature and associated challenges in lowering liquidity and further disposal.

To read the full commentary, please click here.

Mastering the tax game: Proven strategies for businesses in the UAE and GCC

In its April issue Entrepreneur Middle East features Shamma AlFalahi who shares proven tax strategies for businesses in the UAE and GCC.

In the very active economic landscape of the UAE and GCC, understanding the nuances of tax laws is not just about compliance - it's about gaining a strategic advantage. As these regions diversify away from traditional oil-based economies, new tax policies and incentives have emerged, shaping a complex but navigable landscape for informed entrepreneurs.

To read the full commentary, please click here.

UAE Tax updates

Several pivotal changes have been introduced in UAE tax regulations, significantly impacting business operations and financial planning. Below is a comprehensive overview of the most recent tax updates, providing detailed insights into compliance requirements and potential business impacts.

These updates reflect key modifications across the taxation framework. Businesses are advised to review the revised regulations carefully, seek professional guidance as needed, and implement necessary measures to ensure full compliance, mitigate risks, and optimize any available benefits.

Qualifying Investment Funds & Limited Partnerships Exemption

Cabinet Decision No. 34 of 2025

Effective Date: April 1, 2025 – Applicable to Tax Periods commencing on or after the 1st of January 2025

This decision sets out the detailed criteria for qualifying Investment Funds, Real Estate Investment Trusts ("REITs"), and Qualifying Limited Partnerships to be granted an exemption from Corporate Tax, ensuring that only entities meeting the specified thresholds and operational requirements benefit from this status.

Nexus Determination for Non-Resident Persons

Cabinet Decision No. 35 of 2025

Effective Date: April 10, 2025 - This Decision applies to Tax Periods commencing on or after January 1, 2025

Cabinet Decision No. 35 of 2025 exclusively sets out the criteria to determine when a non-resident person (or entity) is deemed to have a nexus in the State for Corporate Tax purposes under Federal Decree-Law No. 47 of 2022. By clearly defining the circumstances, such as income from immovable property or adjustments made under related decisions, this measure ensures that non-resident entities with taxable connections register with the Authority.

Public Clarification – Barter Transactions (VATP042)

Effective Date: 28 April 2025 – Applicable to supplies made on or after this date

Covers all transactions involving the exchange of goods and/or services for non-monetary consideration in the UAE.

Corporate Tax Guide – Interest Deduction Limitation Rules (CTGIDL1)

This guide provides detailed clarification on the interpretation and application of the Interest Deduction Limitation Rules under the Corporate Tax Law. It explains which financing costs qualify as deductible Interest, describes how to differentiate between relevant and non-relevant charges, and outlines the methods for applying both the Specific Interest Deduction Limitation Rule and the General Interest Deduction Limitation Rule.

Public Clarification – Crypto-Currency Mining (VATP039)

Effective Date: Effective as of the implementation of Federal Decree-Law No. 8 of 2017 on Value Added Tax and Cabinet Decision No. 52 of 2017 on its Executive Regulation (i.e. from 1 January 2018).

Applies to all crypto-currency mining activities using a proof-of-work mechanism in the UAE.

Corporate Tax Late Registration Penalty Waiver

The Ministry of Finance and Federal Tax Authority have launched an initiative to waive the AED 10,000 administrative penalty for late corporate tax registration. Eligible businesses and natural persons who submit their registration application and first tax return (or annual statement) within seven months of their first tax period's end will automatically qualify—no appeals required. Plus, any fines already paid by qualifying registrants will be refunded in due course.

To read the full information, click here.

BSA Happenings

BSA LAW celebrated its 24th anniversary

On 4 April 2025 BSA LAW celebrated its 24th anniversary! This milestone would not have been possible without the dedication and contribution of all of our colleagues throughout the years.

To celebrate this special occasion, we partnered with Al Noor Training Center for People of Determination to produce a small token of appreciation for BSA LAW employees.

These unique gifts have been specially crafted by the talented individuals which represent our shared commitment to inclusivity and giving back.

Awards and Accolades

BSA LAW recognized in Legal 500 EMEA 2025 with 14 high rankings

BSA LAW is honored to be recognized in the Legal 500 EMEA Guide 2025, earning 14 high rankings - reinforcing our commitment to legal excellence.

UAE Practice Area Rankings:

• Local Litigation
• TMT
• Insurance
• Construction
• Intellectual Property
• Arbitration and International Litigation
• Commercial, corporate and M&A
  

Oman Practice Area Rankings:

• Banking & Finance
• Commercial, Corporate and M&A
• Dispute Resolution

Individual Lawyer Rankings:

• Arsalan Tariq
• Sahil Taneja
• Yasin Chowdhury
  

To view this accolade, click here.

BSA LAW is an Award Winning Law Firm in the UAE in The Patent Lawyer Law Firm Rankings 2025

BSA LAW is delighted to achieve the status of Award Winning Law Firm in the UAE in The Patent Lawyer Law Firm Rankings 2025 by The Patent Lawyer Magazine.

Our IP practice is designed to empower businesses, innovators and creators in navigating the demanding landscape of IP rights and enforcement, and we are proud to be recognised for its robust advisory, commercial and contentious capabilities.

To view this accolade, click here.