Less Than 2 Months to Go: MoHRE Reminds Private Firms of Immovable June 30 Emiratisation Deadline

 

The clock is officially ticking for private sector employers across the UAE. The Ministry of Human Resources and Emiratisation (MoHRE) has issued an urgent advisory reminding establishments that June 30, 2026 is the hard deadline to hit their semi-annual Emiratisation targets for the first half of the year.

Unlike early iterations of the program, MoHRE's 2026 enforcement protocol relies heavily on automated digital audits and AI tracking tools. Waiting until the final week to hire will expose your business to severe operational restrictions and massive financial penalties starting July 1.

1. What Are the 2026 Targets for Your Business?

The UAE's current framework breaks down quotas based on company size and specific target industries.

Companies with 50+ Employees (Skilled Roles)

Large and mid-sized organizations must hit an overall cumulative target of 10% Emirati representation in skilled roles by the end of December 2026. This is monitored via a strict two-part split:

• H1 Deadline (June 30, 2026): Companies must demonstrate a minimum 1% net increase in Emirati staffing.

• H2 Deadline (December 31, 2026): Companies must secure the final 1% net increase, completing the mandatory 2% annual growth.

Target Companies with 20 to 49 Employees

If your small-to-mid-sized business operates within MoHRE's 14 designated high-growth economic sectors (including Real Estate, Construction, Healthcare, Education, Financial Services, and IT), your targets are structural:

• You were required to hire your first Emirati by the end of 2024, and a second by the end of 2025.

• For 2026, you must successfully retain both employees and ensure continuous social security contributions are paid, or face immediate non-compliance penalties.

2. The Critical 2026 Financial Penalty Framework

Failing to meet these goals results in automated financial penalties that compound quickly.

• The Unfilled Position Fine: For companies with over 50 employees, the penalty for every single unfulfilled Emirati quota position reaches AED 9,000 per month (equal to AED 108,000 annually) for 2026.

• The AED 6,000 Minimum Wage Trap: Effective January 1, 2026, the UAE introduced a mandatory minimum monthly salary of AED 6,000 for Emirati employees to count toward quotas. If you are paying an existing or new Emirati less than this threshold, they will be automatically excluded from your target calculations starting July 1, 2026, leaving you exposed to unfulfilled position fines.

• Classification Downgrades: Violating firms are automatically downgraded to Tier 3 within MoHRE’s classification system. This tier shift drives up work permit fees by up to 80% and locks the company out of priority access to lucrative government procurement contracts.

3. Step-by-Step Action Plan to Ensure H1 Compliance

If your business is currently facing an Emiratisation deficit, you must execute these steps immediately to stay in safe waters before the June 30 cutoff.

1.Audit your current skilled employee counts:Immediate Action.

Log into the MoHRE smart portal and review your total skilled workforce count. Recalculate your exact 1% target requirement for H1 based on your current headcount.

2.Source verified talent via the Nafis Portal:Weeks 1–2.

Do not post blindly on open forums. Source candidates using the official Nafis Platform (extended by presidential decree to 2040). Nafis verifies the eligibility of Emirati job seekers and provides your business with substantial salary support and training grants.

3.Verify contract terms and salary minimums:Week 3.

Draft the employment contract ensuring the basic salary plus allowances meets or exceeds the AED 6,000 minimum threshold. Ensure the job role is officially classified under MoHRE's "Skilled" professional levels.

4.Register the employee for Social Security:Before June 30.

Once hired, immediately register the employee with the General Pension and Social Security Authority (GPSSA) or the relevant local pension fund. MoHRE's digital field monitoring system cross-checks pension data on July 1 to verify that the hire is genuine.

Beware: The Crackdown on "Fake Emiratisation"

MoHRE has explicitly warned that its upgraded inspection mechanisms use advanced AI data matching to flag fraudulent hiring schemes.

Severe Warning: "Fake Emiratisation"—which includes paying salaries to citizens to stay at home, inventing fake job descriptions, or manipulating employment records—carries steep criminal liabilities. Repeat corporate offenders face a flat AED 100,000 fine, complete suspensions on issuing new work permits, and an outright ban on registering any sister companies or new commercial entities in the UAE.

#UAEJobs2026 #Emiratisation #MoHRE #NafisProgram #DubaiBusiness #AbuDhabiBusiness #UAEHrUpdates #EmiratizationDeadline

Mastering the Pillars of UAE Corporate Tax: Profits, Losses, Transfer Pricing, and Disputes

 

 The introduction of Corporate Tax is no longer a future adjustment—it is an active operational reality for every enterprise in the country. To maintain full financial compliance, business owners, financial officers, and tax professionals must move past introductory summaries and grasp the specific, audited mechanics that govern corporate accounting.

Failing to calculate your taxable position correctly, mismanaging cross-border transactions, or misinterpreting your right to carry forward operational losses will result in automatic penalties.

1. Calculating Taxable Profits and Deductions

The starting point for calculating your tax liability is always your accounting net profit or loss, as reflected in standard financial statements. However, that figure must be adjusted based on the rules of deductible vs. non-deductible expenditures to arrive at your true Taxable Income.

The standard corporate tax rate is 9% on any taxable income that exceeds AED 375,000. Taxable income below this threshold sits safely at a 0% rate.

Quick Reference: Expense Classification

Deductible Expenses (Reduces Taxable Income)	Non-Deductible Expenses (Cannot Be Claimed)
Cost of Goods Sold (COGS)	Personal or household expenses of owners/directors
Operational rent, salaries, utilities, and logistics	Capital expenditures (must be depreciated over time)
Business loan interest (capped at 30% of EBITDA)	Dividends or profit distributions paid to shareholders
50% of verified business entertainment expenses	Penalties, traffic violations, or tax fines paid to the FTA

2. The Transfer Pricing Framework: The "Arm’s Length" Rule

If your business regularly interacts with related corporate entities, sister companies, or subsidiaries, you cannot arbitrarily set prices to move profits around. The FTA strictly enforces Transfer Pricing regulations to prevent profit shifting.

• The Baseline: All transactions between related parties must strictly match the Arm’s Length Principle. This means the pricing must reflect what two completely independent, unrelated companies would charge each other in an open market.

• The Primary Tool: The Comparable Uncontrolled Price (CUP) method is the preferred auditing choice. It explicitly stacks your internal group pricing directly against identical open-market transactions.

• Documentation Burden: If your entity meets the statutory thresholds, you are legally required to maintain a comprehensive Master File and Local File detailing your transfer pricing benchmarking studies.

3. Managing Losses: Indefinite Carry-Forwards

If your business suffers an operational tax loss, the UAE framework provides an incredibly flexible financial safety net—provided you understand how to utilize it.

• Unlimited Timeline: Unlike many regional tax jurisdictions, UAE tax losses can be carried forward indefinitely. There is absolutely no 5-year or 10-year expiration date on regular trading losses.

• The 75% Limit Trap: You cannot wipe out your entire tax bill in a highly profitable year using past losses. The amount of loss you can offset is strictly capped at 75% of that specific year’s taxable income.

• Ownership Continuity: To carry forward a loss, the same owners must continuously hold at least 50% of the company's shares from the year the loss occurred to the year it is claimed. If ownership drops below 50%, you can only carry forward the loss if the core business activity remains identical.

4. The Statutory Tax Dispute Escalation Path

If your company receives an unexpected tax assessment or administrative penalty from the FTA, you cannot simply skip to standard business arbitration or civil litigation. You must follow the specialized, rigid federal tax dispute framework.

1.File a formal Tax Reconsideration Request:Within 40 business days of the FTA decision.

Submit an electronic request via the EmaraTax portal. You must provide a comprehensive Arabic memorandum outlining the exact legal grounds and supporting evidence challenging the FTA's assessment.

2.Escalate to the Tax Disputes Resolution Committee (TDRC):Within 40 business days of the reconsideration outcome.

If the FTA rejects your reconsideration, you have the right to object to the TDRC—an independent body chaired by a member of the judicial authority. Crucial condition: You must fully pay the disputed tax and penalties upfront before the TDRC will hear your case.

3.File an appeal in the Federal Court system: Within 40 business days of the TDRC decision.

If the disputed amount exceeds AED 100,000 and you remain unsatisfied with the TDRC's ruling, your legal counsel can officially advance the dispute to the Federal Court of First Instance, and subsequently, the Court of Appeal.

Pillar Two Notice: If your business is a branch or subsidiary of a massive Multinational Enterprise (MNE) with consolidated global revenues exceeding EUR 750 million, you are subject to the Domestic Minimum Top-up Tax (DMTT) framework. This ensures an effective global minimum tax rate of 15%, running entirely separate from the local 9% standard corporate tax system.

#UAETaxUpdates #CorporateTaxUAE #TransferPricing #TaxLossesUAE #TDRC #EmaraTax #DubaiBusiness #TaxCompliance2026

New Personal Status Law in the U.A.E

 The new Personal Status Law in the United Arab Emirates (UAE), which came into effect on February 1, 2023, is a landmark piece of legislation that introduces several significant changes to the way that personal status matters are dealt with in the country. 

The law applies to all non-Muslim residents of the UAE, and it covers a wide range of issues, including marriage, divorce, child custody, and inheritance. One of the most significant changes introduced by the law is the recognition of civil marriage. Under the previous law, non-Muslim couples could only get married in a religious ceremony, but the new law now allows them to get married in a civil ceremony before a judge. 

The law also makes it easier for couples to get a divorce. Under the previous law, divorce was only possible if one spouse could prove fault on the part of the other spouse. However, the new law introduces a system of "no-fault divorce," which means that either spouse can get a divorce without having to prove fault. 

The law also makes several changes to the way that child custody is determined. Under the previous law, child custody was automatically awarded to the mother in the event of a divorce. However, the new law now gives judges more flexibility in determining child custody, and they will take into account the best interests of the child when making a decision. 

Finally, the law also makes a number of changes to the law of inheritance. Under the previous law, inheritance was governed by Islamic law. However, the new law now allows non-Muslims to choose to have their inheritance governed by the laws of their home country. 

The new Personal Status Law is a welcome development for non-Muslim residents of the UAE. It provides them with greater legal certainty and protection, and it brings the UAE into line with other international jurisdictions in terms of personal status law. 

Here are some of the key features of the new Personal Status Law in the UAE: 

Civil marriage: The law recognizes civil marriage for non-Muslim couples. This means that couples can get married in a civil ceremony before a judge, without having to go through a religious ceremony.

No-fault divorce: The law introduces a system of "no-fault divorce," which means that either spouse can get a divorce without having to prove fault on the part of the other spouse.

Joint child custody: The law now gives judges more flexibility in determining child custody, and they will take into account the best interests of the child when making a decision.

Choice of law for inheritance: Non-Muslims can now choose to have their inheritance governed by the laws of their home country, instead of Islamic law.

The new Personal Status Law is a significant step forward for the UAE, and it shows the country's commitment to providing a fair and equitable legal system for all residents. 

Civil Marriage in the UAE: 

Civil marriage in the UAE is a legal union between a man and woman that is solemnized as a civil contract, under secular rules, regardless of faith or nationality. It is regulated by Articles 4 and 5 of the Civil Marriage Law No. 14 of 2021. 

Who is eligible for civil marriage in the UAE? 

The following are eligible for civil marriage in the UAE: 

• Non-Muslim residents of the UAE
• Tourists and visitors to the UAE who are not Muslims
• Citizens of non-Muslim countries

What are the requirements for civil marriage in the UAE? 

To get married in a civil ceremony in the UAE, both parties must meet the following requirements:

• Be at least 21 years old
• Be of sound mind
• Be unmarried
• Not be closely related

What documents are required for civil marriage in the UAE? 

• Completed and signed marriage application form
• Copy of passport or Emirates ID (of both parties)
• Proof of no record of existing marriage (for both parties)
• Marriage agreement (optional)

How to apply for civil marriage in the UAE 

Applications for civil marriage can be submitted online or in person at the Family Court in Abu Dhabi or Dubai.

What is the cost of civil marriage in the UAE?

The standard civil marriage fee in the UAE is AED 300. However, there is an express service available for a fee of AED 2,500.

What happens after the civil marriage application is submitted?

Once the civil marriage application is submitted, the court will review the documents and schedule a date for the ceremony. The ceremony will be performed by a judge in the presence of two witnesses.

After the ceremony, the couple will be issued a marriage certificate. The marriage certificate is a legal document that proves the couple is married. 

Civil marriage is a popular option for non-Muslim couples who are living or working in the UAE. It is a simple and straightforward process, and it provides couples with the legal certainty and protection that they need. 

No-Fault Divorce: No-fault divorce is a type of divorce in which one spouse does not have to prove that the other spouse has done anything wrong in order to get a divorce. Instead, the spouse simply needs to state that the marriage has irretrievably broken down. 

No-fault divorce was first introduced in the United States in California in 1970. It has since been adopted by all 50 states and the District of Columbia. 

There are a number of advantages to no-fault divorce. First, it allows couples to get a divorce without having to go through a lengthy and acrimonious process of proving fault. This can be beneficial for both spouses, as it can help to reduce conflict and bitterness. 

Second, no-fault divorce allows couples to focus on the important issues of their divorce, such as child custody and division of assets. This can help to make the divorce process more efficient and less stressful. 

Third, no-fault divorce is more gender-neutral than fault-based divorce. In a fault-based divorce, the spouse who is found to be at fault may be penalized financially or in other ways. This can create an imbalance of power between the spouses. No-fault divorce eliminates this imbalance and allows both spouses to start a new chapter in their lives on equal footing. 

However, there are also some potential disadvantages to no-fault divorce. One concern is that it can make it easier for couples to get divorced without thinking through the consequences. This can lead to some couples rushing into a divorce without considering all of their options. 

Another concern is that no-fault divorce can make it more difficult for couples to reach agreements on child custody and division of assets. This is because there is no longer any incentive for spouses to cooperate with each other. 

Overall, no-fault divorce is a complex issue with both advantages and disadvantages. It is important for couples to weigh the pros and cons carefully before deciding whether or not to pursue a no-fault divorce. 

In the UAE, the new Personal Status Law, which came into effect on February 1, 2023, introduced a system of no-fault divorce for non-Muslim couples. This means that either spouse can get a divorce without having to prove fault on the part of the other spouse. 

The introduction of no-fault divorce is a welcome development for non-Muslim couples in the UAE. It provides them with greater flexibility and choice in their divorce proceedings. 

Joint Child Custody:

Joint child custody in the UAE is a relatively new concept. It was introduced by the new Personal Status Law for non-Muslim couples, which came into effect on February 1, 2023. 

Under the new law, both parents have an equal right to joint custody of their children from the time of the child's birth until the child reaches the age of 18. However, either parent can petition the court to obtain sole custody of the child if they can demonstrate that the other parent is not fit to be a custodian.

The court will consider a number of factors when making a decision about child custody, including:

• The best interests of the child
• The wishes of the child, if the child is of sufficient age and maturity
• The physical and emotional needs of the child
• The financial resources of the parents
• The ability of the parents to provide a safe and stable environment for the child

If the court grants joint custody, the parents will be required to develop a parenting plan that sets out how they will share custody of the child. The parenting plan will need to address issues such as:

• The child's residence
• The child's contact with each parent
• The child's education
• The child's healthcare
• The child's religious upbringing

The parents are free to negotiate the terms of the parenting plan themselves, but if they are unable to reach an agreement, they can ask the court to help them. 

Joint child custody is a positive development for non-Muslim couples in the UAE. It allows both parents to be involved in their children's lives and to share the responsibility of raising them. It can also help to reduce conflict between the parents and to create a more stable and secure environment for the children.

However, it is important to note that joint child custody is not always the best option for every family. In some cases, it may be in the best interests of the child for one parent to have sole custody. Parents need to work with their lawyers to determine what is the best arrangement for their family.

Choice of law for inheritance:

The new Personal Status Law in the UAE, which came into effect on February 1, 2023, allows non-Muslims to choose to have their inheritance governed by the laws of their home country, instead of Islamic law. 

This is a significant change, as it gives non-Muslims more control over how their assets are distributed after their death. It also brings the UAE into line with other international jurisdictions in terms of inheritance law. 

To choose to have your inheritance governed by the laws of your home country, you must make a will. In your will, you must state that you wish your inheritance to be governed by the laws of your home country. 

If you do not make a will, your inheritance will be governed by Islamic law. Under Islamic law, inheritance is divided among certain relatives, such as the spouse, children, and parents. The exact distribution of the inheritance will depend on the specific circumstances of the case. 

It is important to note that the choice of law for inheritance is only available to non-Muslims. Muslim residents of the UAE must still have their inheritance governed by Islamic law. 

If you are a non-Muslim resident of the UAE, it is important to consider making a will to ensure that your assets are distributed according to your wishes after your death. You should also speak to a lawyer to get advice on the best way to structure your will. 

Benefits of choosing the law of your home country for inheritance in the UAE

There are a number of benefits to choosing the law of your home country for inheritance in the UAE. These include: 

• More control: You will have more control over how your assets are distributed after your death.
• Certainty: You will know that your assets will be distributed according to the laws of your home country, which you are likely to be more familiar with.
• Flexibility: The laws of your home country may be more flexible than Islamic law, giving you more options for distributing your assets.
• Equality: The laws of your home country may be more egalitarian than Islamic law, meaning that your assets may be distributed more evenly among your heirs.

How to choose the law of your home country for inheritance in the UAE

To choose the law of your home country for inheritance in the UAE, you must make a will. In your will, you must state that you wish your inheritance to be governed by the laws of your home country.

 You should also speak to a lawyer to get advice on the best way to structure your will and to ensure that it is valid under the laws of the UAE.

The ruler of Dubai announced 10 economic principles to Guide the country

 HH Sheikh Mohammed, the ruler of Dubai, has recently announced ten key economic principles that are expected to guide the country's economic policies moving forward.

 Here are the principles: 

1.     Focus on innovation and technology: The UAE should invest in research and development, and in the development of new technologies, to become a global leader in innovation. Sheikh Mohammed believes that the UAE must become a global hub for innovation to remain competitive in the 21st century. He has called for the establishment of a new "Silicon Oasis" in Dubai that will focus on research and development in emerging technologies. 

2.     Embrace diversity: The UAE should promote diversity in its workforce and in its economy, to attract the best talent from around the world. Sheikh Mohammed believes that the UAE's most valuable asset is its people. He has called for the development of a strong education system that will produce a skilled workforce for the future. He has also called for the UAE government to invest in training and development programs for Emirati citizens. 

3.     Build partnerships: The UAE should build partnerships with businesses, governments, and universities around the world to develop new opportunities and to share knowledge. Sheikh Mohammed believes that entrepreneurship is essential for economic growth. He has called for the creation of a more supportive environment for entrepreneurs, including access to capital and business support services. He has also said that the UAE government will take a more active role in supporting startups and small businesses. 

4.     Foster entrepreneurship: The UAE should create an environment that is conducive to entrepreneurship, by providing support for start-ups and small businesses. Sheikh Mohammed believes that the UAE's economy must not be reliant on oil and gas. He has called for the development of new industries, such as tourism, manufacturing, and logistics. He has also said that the UAE government will support the development of new free zones and special economic zones. 

5.     Empower the youth: The UAE should invest in its youth, providing them with the education and skills they need to succeed in the 21st-century economy. Sheikh Mohammed believes that the UAE must work with its neighbors to develop a more integrated regional economy. He has called for the creation of a new Gulf Cooperation Council (GCC) customs union and a GCC market for goods and services. He has also said that the UAE will work with its neighbors to develop new infrastructure projects, such as railways and roads. 

6.     Invest in infrastructure: The UAE should invest in its infrastructure, including roads, ports, and airports, to support economic growth. Sheikh Mohammed believes that businesses have a responsibility to society. He has called for businesses to invest in CSR initiatives and to support social causes. He has also said that the UAE government will support businesses that are committed to social responsibility. 

7.     Promote trade: The UAE should promote trade with its neighbors and with the rest of the world, to create new markets for its products and services. The seventh principle is to promote sustainable development. 

8.     Protect the environment: The UAE should protect the environment, to ensure the long-term sustainability of its economy. Sheikh Mohammed believes that the UAE must develop a sustainable economy. He has called for the adoption of green technologies and for the protection of the environment. He has also said that the UAE government will invest in renewable energy projects and in waste management infrastructure. 

9.     Be a global leader: The UAE should strive to be a global leader in the economy, by setting high standards for quality, efficiency, and innovation. Sheikh Mohammed believes that the UAE must work with its international partners to develop a more stable and prosperous global economy. He has called for the UAE to participate in international trade agreements and to invest in developing countries. He has also said that the UAE will use its diplomatic network to promote peace and stability in the world. Sheikh Mohammed believes that the UAE has a strong brand that can be used to attract investment and talent. He has called for the UAE government to invest in promoting the UAE brand abroad. He has also said that businesses in the UAE should use the UAE brand to promote their products and services 

10.  Create a just society: The UAE should create a just society, where everyone has the opportunity to succeed, regardless of their background or circumstances. Sheikh Mohammed said that the UAE is at a "pivotal moment" in its economic development and that these principles will help the country to achieve its ambitious goals for the future. 

Here are some of the key benefits of the UAE's new economic principles: 

• They will create a more diversified economy that is less reliant on oil and gas.
• They will foster innovation and entrepreneurship, which will lead to the creation of new jobs and businesses.
• They will invest in human capital, which will improve the skills and productivity of the UAE's workforce.
• They will promote sustainable development, which will protect the environment and ensure the economy's long-term health.
• They will empower Emirati women, making the UAE a more inclusive and equitable society.
• They will strengthen the private sector, which will drive economic growth and create new opportunities for Emiratis.
• They will open up the UAE to the world, which will attract investment, tourism, and trade.
• They will embrace change, which will allow the UAE to adapt to the challenges and opportunities of the 21st century.

The UAE's new economic principles are a bold and ambitious vision for the future. If the UAE is successful in implementing these principles, it will be a beacon of innovation, entrepreneurship, and economic prosperity in the Middle East and the world. 

A Significant Order of Dubai and Sharjah Court of Cassation in Civil Cases

 Dubai Court of Cassation Releases Prisoners in Civil Cases

 Under Article 203 of the UAE Civil Procedure Law, a new court order in a civil case has been issued in Dubai, United Arab Emirates. The order, which was issued by the Dubai Court of Appeal, overturns a lower court ruling and orders the release of an individual from imprisonment.

The individual in question was initially imprisoned following a ruling by the Dubai Court of First Instance. However, the Court of Appeal, upon reviewing the case, determined that the imprisonment was unwarranted and ordered the individual's immediate release.

 This decision is a significant development in the UAE's legal system, as it highlights the country's commitment to upholding the rights of its citizens. The Court of Appeal's ruling demonstrates its commitment to ensuring that justice is served for all individuals within its jurisdiction.

 The release of the imprisoned individual is a positive outcome for all parties involved. It not only upholds the individual's rights but also reinforces the UAE's commitment to maintaining a just and equitable legal system.

 The court order, issued by the Dubai Upper Court, stems from a civil case involving a dispute between two parties. The individual in question was initially imprisoned following a lower court's ruling. However, the Upper Court, upon reviewing the case, determined that the imprisonment was unwarranted and ordered the individual's immediate release.

 This decision underscores the importance of due process and the right to a fair trial, which are fundamental principles of the UAE's legal system. The Upper Court's ruling demonstrates its commitment to ensuring that justice is served for all individuals within its jurisdiction.

 The Court of Cassation in Dubai also ordered the release of several civil case prisoners. The court decided after finding that the prisoners had been held in jail for longer than the maximum period allowed by law.

The court's decision has been welcomed by human rights groups, who have long criticized the UAE's use of imprisonment in civil cases. The groups argue that imprisonment is a disproportionate punishment for debtors and that it often leads to further impoverishment and social exclusion.

 In addition to the release of the prisoners, the Dubai Court of Cassation also ruled that debtors should no longer be automatically imprisoned if they are unable to pay their debts. The court said that judges should consider all options before ordering imprisonment, such as allowing debtors to pay their debts in installments or to declare bankruptcy.

 The court's ruling is a significant victory for debtors' rights in the UAE. It is expected to have a major impact on the lives of many people who are currently incarcerated in civil cases.

 Sharjah Court of Cassation Releases Prisoners in Civil Cases

 On June 20, 2023, the Sharjah Court of Cassation released 10 prisoners who were incarcerated in civil cases. The court's decision was based on Article 289 of the UAE Civil Procedure Law, which states that a debtor may be released from prison if they demonstrate that they are unable to pay their debts.

 The court's decision has been welcomed by human rights groups, who have long criticized the UAE's use of imprisonment in civil cases. The groups argue that imprisonment is a disproportionate punishment for debtors and that it often leads to further impoverishment and social exclusion.

 Releasing the prisoners is a positive step towards reforming the UAE's civil justice system. It is also a sign of the country's growing commitment to human rights.

 In addition to the release of the prisoners, the Sharjah Court of Cassation also ruled that debtors should no longer be automatically imprisoned if they are unable to pay their debts. The court said that judges should consider all options before ordering imprisonment, such as allowing debtors to pay their debts in installments or to declare bankruptcy.

 The court's ruling is a significant victory for debtors' rights in the UAE. It is expected to have a major impact on the lives of many people who are currently incarcerated in civil cases.