Foreword
We are proud to share the latest edition of our Hadef Highlights
newsletter, which marks the culmination of a highly successful
AI-focused campaign at Hadef & Partners. Over the past few
weeks, we have highlighted the significant and growing impact of
artificial intelligence across a range of practice areas,
culminating in a dynamic in-person event at the DIFC Innovation
Hub, where Senior Counsel, Commercial, Diana Froyland, together with other
distinguished panelists, led an insightful discussion on
implementing AI with compliance and strategic foresight.
As part of this campaign, we released a series of articles
providing practical perspectives on AI's role in Banking,
Corporate Transactions, Data Protection, and Intellectual Property.
Each piece reflects not only the transformative power of AI, but
also the legal and regulatory considerations businesses must
navigate in this rapidly evolving space.
In addition to our AI series, this newsletter features
contributions from our Employment and Commercial teams, providing
updates on key developments including employment law trends in the
UAE and important compliance guidance under the UAE Federal Data
Protection Law.
We hope you find these insights valuable as you continue to evolve
in the era of technological innovation.
Banking and AI Developments in the UAE: Paving the Way for Innovation
The United Arab Emirates (UAE) is recognized as a global leader
in adopting innovative technologies. Over the past decade, the
country has become a hub for cutting-edge artificial intelligence
(AI) applications, particularly in the banking and financial
sectors. The UAE's focus on technological transformation has
significantly reshaped the traditional banking landscape, making it
more efficient, accessible and user-friendly.
The UAE government has been a driving force behind the adoption of
AI and fintech innovations. The UAE Strategy for Artificial
Intelligence 2031, launched in 2017, aims to position the country
as a global leader in AI by the end of the decade. This strategy
includes initiatives to integrate AI into various sectors,
including banking.
In this article, Catriona McDevitt, Partner and Head of Banking
& Finance, provides an overview on how AI is revolutionizing
the banking sector in the UAE and what the future holds.
Corporate Transactions and AI
The pace of development in artificial intelligence (AI) is
reshaping corporate transaction trends, with increasing M&A
activity targeting AI and technology-driven businesses. AI tools
are already being utilized across various stages of corporate
transactions, most notably in due diligence exercises, which can
deliver greater speed and efficiency.
While AI offers clear advantages in handling the 'heavy
lifting' of corporate transactional work, its use will require
legal professionals to be highly attentive to risks such as data
confidentiality breaches.
In this article, Patrick Tweedale, Partner, Corporate M&A
together with Associates, Christopher Fenn and Alexander Wagg, consider where AI currently is
as well as the trends in corporate transactions, including AI
companies and the AI-tools currently being utilised in corporate
transactions.
AI and Data Protection Regulation: What Businesses Need to Know
The adoption of AI systems by businesses has gained significant
popularity in the UAE (as it has globally) across various sectors,
including healthcare, finance, retail, and recruitment, partly
driven by the country's commitment to becoming a global leader
in technology and innovation. The UAE Government has made
considerable investments in AI through initiatives like the UAE
Artificial Intelligence Strategy 2031, which aims to integrate AI
into all aspects of UAE governance and public services.
In the UAE private sector, AI is increasingly being used for data
analytics, customer service automation, and predictive modelling.
AI-powered 'chatbots' and virtual assistants are commonly
used in customer service and e-commerce, while machine learning
algorithms are being applied by the finance sector for fraud
detection and risk management.
In this article, Victoria Woods, Partner and Head of Commercial,
together with Senior Counsels, Julie Beeton and Diana Froyland, consider what businesses need
to know in relation to AI and Data Protection Regulation.
The Human Touch, Monkey Business, and a Piece of American Cheese: human input and copyright in AI generated images
Can AI can be an 'author' for the purposes of copyright
law? Considering this question from a UAE and historical
perspective, it remains that the human touch is essential to be
considered as an 'author' and for copyright to
subsist.
As this rapidly evolving legal landscape develops, case-by-case
analysis of human contribution into a particular work will be
essential to determine whether copyright subsists in that
work.
In this article, James Dunne, Head of IP and Rami Omar, Partner, Dispute Resolution,
consider the historical intersection between technological
developments and copyright and the emerging legal doctrine in
determining how to attribute 'authorship' of works created
with the use of AI.
Legal 500: Employment and Labour Law Comparative Guide – United Arab Emirates
Chris Bailey-Gibbs, Head of Employment, and Suzanne Gingles, Senior Counsel, have
contributed to the Legal 500: Employment and Labour Law Comparative
Guide – UAE.
The Guide provides a pragmatic overview of the law and the practice
of employment and labour law across the UAE. It covers information
about the current issues affecting employment and labour in-country
and, addresses topics such as the termination of employment,
procedures, protection for workers, compensation as well as insight
and opinion on the most common difficulties in the workplace and
any upcoming legal changes planned in the UAE.
Understanding and Complying with the UAE Federal Data Protection Law
The UAE has implemented a comprehensive framework to enhance consumer rights. Key legislation introduced in recent years includes:
- Data Protection Legislation: Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data (the "PDPL").
- Consumer Protection Legislation: Federal Law No. (15) of 2020 on Consumer Protection and Cabinet Resolution No. 66 of 2023 concerning the Executive Regulations of Federal Law No. (15) of 2020.
- Digital Commerce Legislation: Federal Decree-Law No. 14/2023 on Trading by Modern Technological Means.
In this article, Victoria Woods, Partner and Head of Commercial together with Senior Counsels Diana Froyland and Julie Beeton, focus on the PDPL, specifically on the obligations that impact businesses (both in the UAE and abroad), and the steps businesses should take to become compliant.
UAE Tax Administration Update – May 2025
The Federal Tax Authority (FTA) recently released FTA Decision
No. 1 of 2025 and FTA Decision No. 2 of 2025 setting out their
internal policy on several tax administrative matters.
In this tax newsflash, Theunis Claassen, Head of Tax, together with Tyra Yah, Associate, provide a brief overview
of the publications.
Event
Implementing AI – Key Considerations and Compliance Strategies
As part of our AI Week campaign, Hadef & Partners proudly
partnered with ACC MENA to host a successful event at the DIFC
Innovation Hub: "Implementing AI – Key Considerations
and Compliance Strategies."
Senior Counsel at Hadef & Partners, Diana Froyland was joined by distinguished
speakers to discuss practical insights into AI implementation,
regulatory challenges, and compliance frameworks in the UAE and
beyond. The event was well attended by in-house counsel, business
leaders, and technology experts, sparking lively discussion and
providing valuable strategies for navigating the evolving AI
landscape.
We are grateful to our speakers, participants, and ACC MENA for
helping make this a standout event.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
