6 New UAE Rules Effective July 2025: What Residents Must Know

6 New Rules Taking Effect This July That You Should Know About

As of July 2025, the United Arab Emirates has implemented a series of regulatory changes that impact residents, expatriates, and businesses across the country. These updates reflect the UAE’s ongoing commitment to modernization, sustainability, and economic diversification. Here’s a comprehensive breakdown of the 6 new UAE rules every resident must be aware of, along with how these changes may affect daily life and future planning.

1. Stricter Golden Visa Eligibility Criteria

Golden Visa Revised Requirements 2025

The UAE’s Golden Visa program, which previously attracted investors, entrepreneurs, scientists, and skilled professionals, now enforces enhanced eligibility criteria:

  • Minimum investment threshold for real estate applicants has been increased from AED 2 million to AED 3 million.

  • Tech and medical professionals must now show 5+ years of UAE-based experience in their specialty.

  • Innovators applying through patents must demonstrate active commercialization within the UAE economy.

Impact on Residents and Applicants

Those planning to apply for a 10-year residency must reassess their portfolios and qualifications. Real estate investors, especially, will need to meet the new financial benchmarks to qualify.

2. Mandatory Health Insurance for All UAE Residents

Nationwide Health Insurance Enforcement

Effective July 1, 2025, the UAE government has mandated universal health insurance coverage for all residents, including dependents and domestic workers. Key provisions include:

  • Employers are now legally bound to provide comprehensive insurance policies.

  • Individuals without employer sponsorship must show proof of private coverage before renewing visas.

  • Minimum coverage standards include outpatient, inpatient, emergency, and maternity care.

Consequences of Non-Compliance

Failure to comply will result in:

  • Visa renewal bans

  • Fines up to AED 500 per month

  • Restricted access to public services

3. Eco-Friendly Vehicle Incentive Program

Green Vehicle Promotion Policy 2025

In line with the UAE’s Net Zero 2050 vision, a new eco-vehicle policy incentivizes residents to switch to electric or hybrid cars:

  • Registration fee waivers for the first year

  • Free parking in designated green zones

  • Salik toll exemptions for electric vehicles for the first 2 years

Additionally, all new government fleet acquisitions will be fully electric from July 2025 onward.

Key Takeaway for Car Owners

If you’re planning to buy a car this year, you can significantly cut your costs and support sustainability goals by choosing an electric or hybrid model.

4. Digital Wallets Become Mandatory for Government Transactions

Cashless Government Transition

Starting July 2025, all government-related payments—including visa fees, fines, license renewals, and municipality services—must be processed via digital wallets or UAE-approved e-payment gateways.

Approved Wallets:

  • eDirham

  • Apple Pay

  • Samsung Pay

  • Emirates Digital Wallet (klip)

Implications for Residents

This move aligns with the UAE’s paperless governance policy. All residents must set up a verified digital wallet to continue accessing essential government services without disruption.

5. Revised Labor Law: 4.5-Day Work Week Expansion

Shorter Work Week for Private Sector Firms

Following its successful trial in the public sector, the 4.5-day work week is now mandatory for all private companies with more than 50 employees, beginning July 2025.

  • Work hours: Monday to Thursday (8 am–4:30 pm), Friday (8 am–12 pm)

  • Remote work encouraged on Fridays

  • Weekend remains Saturday-Sunday

Benefits for Employees and Employers

This change enhances employee productivity, mental health, and work-life balance, and promotes alignment with international business hours—especially across Europe and Asia.

6. New Rent Cap Regulations in Major Emirates

Rent Freeze Limitations and Annual Hike Caps

To counter rising living costs, the UAE has introduced strict rental increase limits:

  • Annual rent hikes are now capped at 5% of current rent for residential units.

  • Eviction notice period must be minimum 12 months, regardless of contract type.

  • Mandatory online registration of rental agreements through government portals like Ejari (Dubai) or Tawtheeq (Abu Dhabi).

How This Affects Tenants and Landlords

Tenants are now more protected from arbitrary rent hikes, while landlords are compelled to standardize lease agreements through online platforms to ensure legal validity.


Additional Notes for UAE Residents

Visa Renewal Deadlines Shortened

While not part of the core six, visa renewal grace periods have been reduced from 60 days to 30 days. Be sure to prepare documentation and clear dues ahead of time to avoid penalties.

Stricter Immigration Scrutiny on Freelancers

Freelancers and remote workers under self-sponsorship visas will face more detailed audits to confirm they’re generating UAE-based income and filing annual tax declarations (under Corporate Tax Law 2023).


What You Should Do Now

  • Review your residency status to check if the new Golden Visa or health insurance rules apply.

  • Get digital wallets verified for smooth government service access.

  • Evaluate your car choice if buying in 2025—opt for eco-friendly incentives.

  • Recheck your work schedule if you’re in the private sector.

  • Confirm your rental contract details and know your rights as a tenant.


Conclusion

The UAE’s new rules in July 2025 are designed to foster a more sustainable, digitized, and resident-friendly ecosystem. Whether you’re an expat professional, investor, or long-term resident, staying informed is essential to adapt smoothly. These legislative updates are not only about compliance but also about taking advantage of the benefits they offer—whether through tax-free perks, smoother digital services, or improved work-life balance.

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