The United Arab Emirates’ (UAE) civil legal framework is set to undergo big changes with the country’s new Civil Transactions Law that comes into effect June 1. This will impact families, businesses and residents manage contracts, assets and resolve disputes, besides marking a major shift for youngsters.
The UAE’s Civil Code will be replaced by Civil Transactions Law Federal Law No. 25 of 2025. The earlier law has been in effect since 1985, and the new decree will bring in clarity and accountability in civil law, Gulf News reported.
Empowering youth and redefining adulthood
The UAE is set to reduce the legal age of adulthood from 21 years to 18 years, which would mean that in civil matters, an 18-year-old individual would be able to sign a contract, take part in legal proceedings, initiate businesses among other activities, Dubai-based Gulf News reported.
The new Civil Transactions Law is poised to affect day to day transactions, including signing agreements for renting houses, resolving business deals that have failed, and service agreements.
Transparency and good faith negotiations
One of the primary features of the new law directs that companies and individuals will be required to disclose all important details that may affect the decision making of other parties during negotiations, and that failure to provide complete material facts can attract legal action.
The Civil Transactions Law would majorly affect UAE’s everyday property purchases, long-term service agreements, business partnerships, negotiations for settlements, and investment projects.
Procedural clarity and future compliance
The new law also clearly defines time limits and record-keeping with clear guidelines on deadlines for filing cases.
