New UAE civil transactions law reshapes corporate practice and contracts
Federal Decree Law No. 25 of 2025 (the New Law) replaces Federal Law No. 5 of 1985 (the Old Law) in its entirety and introduces substantial changes to the UAE’s civil law framework.
The analysis — automated & source-checked
- Applies to
- Corporate · UAE
- What to do
- Businesses and legal practitioners must review existing contracts, disclosure mechanisms, authority documents, and corporate structures to ensure compliance with the new statutory obligations that took effect on 1 June 2026.
The UAE's new Civil Transactions Law came into force on 1 June 2026, replacing legislation that has governed civil and commercial relationships in the country since 1985. Federal Decree Law No. 25 of 2025 introduces substantial changes including a statutory framework governing pre-contractual conduct, new rules around contract validity, expanded remedies, age of majority reduced to 18 Gregorian years, revised limitation periods, codification of framework agreements, expanded court powers to intervene in contracts, updated assignment regime, and a more structured framework for agency and authority. The new law also recognizes single-member companies and introduces a dedicated framework for professional companies.
Source
Reported by: Mondaq 3 Jul 2026 Read the original ↗ More from Mondaq →
Quick answers
What do I need to do?
Businesses and legal practitioners must review existing contracts, disclosure mechanisms, authority documents, and corporate structures to ensure compliance with the new statutory obligations that took effect on 1 June 2026.
Who reported this?
Mondaq (UAE).
When was it announced?
3 Jul 2026.
Where can I read the original?
Read the original at Mondaq: https://www.mondaq.com/contracts-and-commercial-law/1811676/new-uae-civil-transactions-law-updates-requirements-for-corporate-practice-and-commercial-transactions
Subscribe — free
Get the next change before it's a deadline
The whole front, every morning. Free.