THE UAE: NEW CIVIL TRANSACTIONS LAW

The UAE has adopted FederalDecree-Law No. 25/2025 Introducing the Civil Transactions Law (the “New Law”), which repeals the UAE Civil Transactions Law (Federal Law No. 5/1985, the “Old Law”) and takes effecton June 1, 2026.

The New Law updates commercial and civil regulations by setting requirements for good faith in pre-contractual negotiations, clarifying the age at which individuals now have full legal capacity, introducing clearer rules on agency in contracts, etc. These changes aim to increase legal certainty, protect the rights of parties, and encourage investment in the UAE.

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