Political System of the UAE

The federal authorities

Source: UAE Legislation: The Constitution, Articles 23, 45, 51, 52 and 116; UAE Government Portal: The Federal Supreme Council; UAE Government Portal: The UAE Cabinet; UAE Government Portal: The Federal National Council; UAE Government Portal: The Federal Judiciary^1,2,4,3,5

The Supreme Council and the President

The Federal Supreme Council is the highest legislative and executive authority. Each emirate has one vote. Decisions on substantive matters need a majority of five members that includes Abu Dhabi and Dubai; procedural matters need a simple majority.²

The council elects the President and Vice President from among its members, for terms of five years that can be renewed. Sheikh Mohammed bin Zayed Al Nahyan, Ruler of Abu Dhabi, was elected President on 14 May 2022. Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, is Vice President and Prime Minister.^1,2,4

The Cabinet and the FNC

The President appoints the Prime Minister, the deputy prime ministers and the ministers, with the consent of the Supreme Council for the Prime Minister. The government portal lists a Cabinet of 28 ministers, six of them women. The Cabinet carries out federal policy, drafts federal laws and the federal budget, and issues the regulations that implement federal laws.⁴

The Federal National Council has 40 members serving four-year terms: half appointed by the rulers' courts and half elected by electoral colleges, with 20 seats for women. Seats follow population: Abu Dhabi and Dubai have 8 each, Sharjah and Ras Al Khaimah 6 each, and Ajman, Umm Al Quwain and Fujairah 4 each. The latest elections were held in October 2023. Federal draft laws, including financial bills, pass through the FNC, which can amend or reject them.³

Federal and local powers

Under Article 120 of the constitution the federation has exclusive powers over foreign affairs, defence, security, federal finances and taxes, currency, education, public health, electricity services, air traffic control, nationality, passports, residence and immigration. Under Article 121 it alone makes the laws on labour, real estate ownership, banking and insurance, companies, civil and commercial transactions, criminal law, intellectual property, and how financial free zones are set up.⁶

Each emirate exercises every power the constitution does not give to the federation, and the natural resources and wealth of each emirate are its public property. At the local level, each emirate is run through its ruler's court, executive council, municipalities and consultative council.^1,6

For an investor this means federal law sets the rules for companies, labour, tax and banking, while trade licences, land and most permits come from the departments of the emirate where you set up.

The courts

The UAE has two court systems. The federal judiciary, headed by the Federal Supreme Court of five judges, serves Sharjah, Ajman, Fujairah and Umm Al Quwain. Abu Dhabi, Dubai and Ras Al Khaimah run their own judicial departments. The legal system combines civil and Sharia law, and common law is applied in the courts of the Dubai International Financial Centre. Article 94 of the constitution states that judges are independent and subject only to the law and their conscience.⁵