Update: New Federal Decree-Law issuing the UAE Civil Transactions Law

Key highlights of the new law include:

• A comprehensive update of civil provisions in line with legislative and practical developments.
• Reducing the age of legal majority from 21 lunar years to 18 Gregorian years, in order to unify the applicable time reference across legislation.
• Introducing new provisions to enhance legal capacity, protect free will, and reinforce legal certainty.
• Clearer regulation of contracts and civil transactions, contributing to the reduction of disputes.
• Updating the rules governing contracts of sale, contracting, and insurance, as well as regulating disputed rights.
• Establishing a legal framework for non-profit companies in support of sustainable development.
• Granting judges broader discretionary powers in legal interpretation to achieve justice without being restricted to a single jurisprudential school.
• Allowing the combination of diya (blood money) or arsh with additional compensation, where appropriate, to ensure full reparation of damage.

The provisions of the new law are scheduled to come into force as of 1 January 2026. Given its direct impact on existing and future contracts, legal risk management, and contractual relationships, we recommend reviewing the relevant legal positions.

We remain fully available to provide the necessary legal support and to clarify any potential implications for your business and interests.