Federal Decree-Law No. 25/2025 (the UAE's new Civil Transactions Law (the New Civil Code)) came into effect on 1 June 2026, repealing and replacing Federal Law No. 5/1985 in its entirety (the Old Code).
For businesses operating in the UAE, the importance of the New Civil Code lies not only in the legislative changes, but in the practical implications that will follow. Whether negotiating contracts, delivering major projects, managing commercial relationships, financing investments or resolving disputes, organisations will need to understand how the new provisions may influence established practices and future decision-making. In this publication, our lawyers discuss the impact of the reforms across the sectors in which we advise, drawing on the collective experience of a team that has lived and worked in the UAE for many years. The insights in the below report are informed not only by legal analysis, but by decades of experience supporting businesses, institutions and government entities operating in the UAE. We hope these perspectives will assist businesses in understanding the opportunities and challenges presented by this landmark reform and in preparing confidently for the future.
The introduction of the New Civil Code represents one of the most significant developments in the UAE’s legal framework since 1985. More than forty years have passed since the enactment of the legislation that has governed civil and commercial relationships across the UAE. During that time, the UAE has transformed into one of the world's most dynamic and forward-looking economies, attracting investment, talent and innovation from around the globe. The New Civil Code reflects that evolution. It arrives at a time when businesses are navigating rapid technological advancement, changing commercial models and an increasingly interconnected world, providing a legal framework designed to support the UAE's ambitions for the decades ahead.
As a firm, we have had the privilege of witnessing this transformation first-hand. Since establishing our presence in Dubai in 1991 and Abu Dhabi in 1993, we have advised clients through successive phases of the UAE's growth and development. We have seen the country's legal and regulatory landscape evolve alongside its economy, supporting government entities, investors, developers, financial institutions and businesses as they have helped shape the modern UAE. This long-standing presence gives us a grounded and practical perspective on the significance of the New Civil Code. While legal reform is a constant feature of any mature and ambitious jurisdiction, changes of this scale are rare, and their impact will be felt across industries and sectors for years to come.
Should you wish to discuss in greater detail how these reforms may affect your organisation, sector or industry, we would be pleased to continue the conversation and share our insights directly relevant to your business.
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