It is already illegal to use a VPN for illegal purposes. The unregulated use of a VPN to access popular apps like WhatsApp, Snapchat and Viber not only robs telecoms of revenue, but also poses a very real threat to national security. Horrendous crimes can be planned, orchestrated, and carried out in secret by using VPNs to hide communications.
No, the UAE's new rule against VPNs is a government scheme designed to put more money in the pocket of government officials. The use of VPNs to access VOIPs has reduced government officials and telecom providers income. The new rule allows the UAE to punish consumers through fines for using programs like SKYPE rather than UAE-endorsed telecom companies.
If someone is willing to break the law and use a VPN for an illegal purpose how is having an extra law against using a VPN in the first place going to stop them? All it will do is inconvenience people who want to use a VPN for an otherwise legal purpose. There are many legitimate purposes for VPNs. For example, I have used a VPN before as part of an information technology course.
If there really is this much concern then they should require registration to prove the VPN will only be used for legally acceptable purposes, NOT ban all use of VPNs.
No, it's not a good thing. There are already protections in place should someone access a system for a crime. But now anyone who accesses a VPN can be fined steeply no matter what their reason. When you really need to access information but you can't afford the costly fees imposed by the companies that control the Internet, then you are out of options.
I think the new law regarding the use of VPN's in the UAE sets a difficult precedent that the rest of the world should not follow. The UAE can make their own laws, but it seems this ban is more about protecting themselves than about protecting their citizens. I think the ban is intended to protect against crime and fraud, but will inevitably hurt the general population.