New UAE Civil Code reshapes commercial litigation — all businesses — effective 1 June 2026
Federal Decree-Law No. 25 of 2025 replaces the 1985 Civil Code on 1 June 2026, introducing new liability regimes for pre-contractual conduct and altering how commercial disputes are pleaded and defended. The change affects all UAE businesses engaged in contract negotiations and commercial litigation.
The analysis — automated & source-checked
- Applies to
- Corporate · UAE
- What to do
- Review and update contract templates, negotiation protocols, and internal dispute-handling procedures to reflect new pre-contractual liability rules. Audit ongoing negotiations and pre-contractual communications for exposure under the new regime. Brief legal and commercial teams on the shift in evidence focus from written terms to negotiation conduct.
The New Civil Code is not a complete overhaul but introduces material amendments that reshape commercial dispute practice. A key development is the statutory regulation of pre-contractual conduct, including liability for bad faith withdrawal from negotiations and pre-contractual disclosure breaches. This shifts evidence focus away from narrow written-contract analysis toward closer scrutiny of party conduct during negotiations. The change has immediate practical significance for how claims are pleaded, defences constructed, and remedies sought in UAE courts.
Source
“Federal Decree-Law No. 25 of 2025 (the New Civil Code) comes into force on 1 June 2026, replacing Federal Law No. 5 of 1985 (the Old Civil Code).”
— Clyde & Co Middle East, 8 Jun 2026
Reported by: Clyde & Co Middle East 8 Jun 2026 Read the original ↗ More from Clyde & Co Middle East →
Quick answers
What do I need to do?
Review and update contract templates, negotiation protocols, and internal dispute-handling procedures to reflect new pre-contractual liability rules. Audit ongoing negotiations and pre-contractual communications for exposure under the new regime. Brief legal and commercial teams on the shift in evidence focus from written terms to negotiation conduct.
What was the deadline?
1 Jun 2026 — this deadline has passed.
Who reported this?
Clyde & Co Middle East (UAE).
When was it announced?
8 Jun 2026.
Where can I read the original?
Read the original at Clyde & Co Middle East: https://www.clydeco.com/en/insights/2026/06/the-new-uae-civil-code-in-commercial-litigation
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