The report did not include details of the final law, but a draft version included fines up to about $136,000 for "carrying misleading news that harms the national economy." It also included a staggering fine of $1,350,000 for "insulting" members of the government and ruling family, according to New York-based Human Rights Watch.

Journalist groups in the United Arab Emirates and international rights groups have criticized the draft law. They accused the Persian Gulf state of trying to muzzle the press, turning news outlets into the country's image-building machine in challenging economic times after years of basking in coverage of hyper-growth.

Abdul Aziz al-Ghurair, the speaker of the unelected legislative body that passed the law, said it was a sign of the country's commitment to "promoting freedom of the press ... in line with (the country's) pioneering regional role in this regard," according to the official WAM news agency.

As in the rest of the Middle East, local media in the UAE have typically avoided stories that could anger ruling officials. But when inviting foreign media to set up offices here, the authorities promised to allow more press freedoms than in other countries in the region.

Last week, Human Rights Watch urged authorities not to retreat on that promise by passing a law that they said imposed "draconian" fines on journalists for what they write.

Officials rejected the criticism, and al-Ghurair said Wednesday the new law assured media in the country will be held to "the highest international standards."

"It will help regulate the media work so that it goes hand in hand with the development of the UAE," al-Ghurair was quoted saying.