The UAE is set for one of its largest regulatory changes in recent memory. A comprehensive overhaul of legal and financial laws is finally taking effect in the UAE, and is impacting on expatriates, businesses, employees and investors.
These changes range from changes in payroll regulations and deadlines, to changes in inheritance and banking legislation, and all help to modernize and update compliance systems, strengthen financial security and “level the playing field” with international laws.
UAE Banks Ban WhatsApp Banking Communication
The most notable change is that from the CBUAE, who have made new regulations regarding anti-fraud communication for banks and other financial institutions.
Banks have now been barred from sending sensitive account details, KYC documents and/or doing security verification updates via WhatsApp, Telegram and other instant messaging platforms. All banking activities now have to be done via official mobile banking application or secure online banking platform.
This is particularly relevant for expats since a lot more financial scams have been experienced by the residents of these countries in the last year. The UAE authorities have declared that messages sent via WhatsApp and claiming to be from your bank or credit card company asking for PIN numbers, OTP codes, identity documents are no longer official government communications and should be considered fraud.
New UAE Salary Rules Under the Wage Protection System
In addition, the MoHRE has implemented enhanced compliance measures for payrolls under Ministerial Resolution No.340 of 2026.
As of June 1, the private sector companies are obliged to pay up salaries on the first day of each Gregorian month. Under previous rules, companies were given a grace period, but it has now been eliminated.
The domain of penalties for late payment of salary goes up rather steeply. Companies are automatically warned on Day 2, measures to suspend day 2 day permits are activated on Day 5 and heavy financial penalties are triggered on Day 11. As of Day 21 non-compliant businesses may be referred to Public Prosecution.
This regulation has more effects for expatriate employees, by enhancing wage protection and transparency in the Wage Protection System (WPS). Now there is better legal protection for employees requesting delayed wage payments.
Major Inheritance Law Changes for Expats
Another sweeping piece of civil law that is altering the way UAE estates are managed with foreign nationals is also undergoing an overhaul. The government has simplified the process of inheritance for foreign nationals who have died intestate (without a registered will) by enacting Federal Decree-Law No. 25 of 2025 regarding foreign nationals’ inheritance of real estate.
The new rules under the newly amended agreement allow the transfer of property, under the approved framework, where the expatriate did not leave any legal heir or formally register a local will in the UAE, to preferred public charities in the UAE.
It has a direct impact on any expat who owns a business share, investment or bank account or property in the Emirates. For the avoidance of future problems amongst family members, experts in the legal field now strongly recommend a person get their will registered in the known methods of the UAE – either through the DIFC Wills Service Centre or through the courts.
Financial Sector Bonus Rules Tightened
The UAE Central bank has also been introducing significant compensation reforms for banks, insurance companies and financial institutions, among others.
In accordance with the Central Bank Circular No. 5/2026, bonuses and variable compensation systems are to be based in the near future on the long-term results and risk exposure of the company.
This change is most significant for the expatriates employed in the banking, investment management and insurance, private equity industries, and others affiliated with these sectors. Companies are increasingly bringing the UAE corporate compensation regimes in line with the international and European ones based on long-term accountability.
Dubai Expands Crypto and Digital Asset Regulations
VARA has also increased the coverage of the quickly developing crypto and blockchain business.
The new standards feature higher licensing standards for firms engaging in tokenised derivatives or real-world asset tokenisation, as well as crypto lending. This involves who is accountable for an asset on the blockchain, such as ownership of a property, the blockchain treasury assets, as well as investment products that are on the blockchain.
The news for ex-pats is even more positive regarding legal protections and requirements for compliance, as the reforms offer better protections of institutional grade and compliance. Today, Dubai’s crypto scene transcends from speculation to a regulated, organized financial landscape.
FAQs
Can UAE banks 100% prohibit WhatsApp?
UAE banks now do not send sensitive financial info, customer verification or even KYC on WhatsApp or Telegram.
When are UAE companies tackling the salary payment under the new rule of WPS?
Employers now have to pay wages on the first of each Gregorian month, as mandated by new rules in the Wage Protection System.
What will happen when an expat dies with no UAE registered Will?
In the new inheritance laws, UAE properties could be donated to designated local charitable organizations if there is no will or legal heirs can be found.
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