Non-compete clauses in UAE employment contracts limit employees from working for competitors after leaving a job. Here is a guide to what is enforceable under UAE Labour Law in 2025.
UAE Labour Law on Non-Compete
Federal Decree-Law No. 33 of 2021 (Article 10) governs non-compete clauses. Permitted: UAE employers may include non-compete clauses in employment contracts. Maximum duration: the non-compete period may not exceed 2 years from the date of termination. Geographic scope: must be limited to a specific geographic area and must be proportionate to the business interests being protected. Activity scope: must relate specifically to the work performed by the employee (not a blanket restriction on all employment). Compensation: if the non-compete prevents the employee from earning a living, UAE courts may find it unenforceable or award compensation.
Conditions for Enforceability
UAE courts assess non-compete clauses on these criteria. Legitimate business interest: The employer must have a genuine interest to protect (trade secrets, client relationships, specialised knowledge). A standard employee with no access to confidential information is unlikely to face an enforceable non-compete. Reasonableness: The scope (time + geography + activity) must be reasonable. A 2-year, UAE-wide non-compete for a junior employee is typically unenforceable. A 6-month, Dubai-only non-compete for a senior executive with client relationships is likely enforceable. No hardship: If the non-compete would prevent the employee from practising their profession at all, UAE courts often reduce the scope or award compensation instead.
DIFC and ADGM Non-Compete
DIFC and ADGM use English common law. Non-compete enforceability follows a similar reasonableness test. DIFC courts have found non-competes of 12 months duration reasonable for senior executives but have reduced or voided broader restrictions. Recommendation: draft non-competes narrowly. Focus on specific client relationships and specific competing activities, not broad industry-level restrictions.