JusticeFace Pro
JusticeFace Pro
Jun 23, 2026
Vereinigte arabische emirate

UAE Enacts New Civil Transactions Law

On June 23, 2026, the United Arab Emirates (UAE) enacted Federal Decree-Law No. 25 of 2025, introducing a comprehensive Civil Transactions Law that brings significant reforms to the country's legal framework. This new legislation, effective from June 1, 2026, aims to modernize civil transactions and align them with contemporary legal standards.

Key Reforms Introduced

The Civil Transactions Law introduces several pivotal changes, including:

  • Reduction of Legal Majority Age: The age of legal majority has been lowered from 21 to 18 years. This change grants individuals aged 18 and above full legal capacity to engage in contracts, manage assets, and conduct other legal activities independently.
  • Judicial Discretion in Absence of Statutory Provisions: Courts are now expressly permitted to apply principles of Islamic Sharia in cases where no explicit legal provision exists. This allows judges to adopt solutions that best achieve justice and public interest without being restricted to a specific school of Islamic jurisprudence.
  • Enhanced Contractual Clarity: The law provides clearer guidelines on contract formation, execution, and enforcement, aiming to reduce disputes and enhance the predictability of contractual obligations.

Implications for Individuals and Businesses

The reduction in the age of majority is particularly impactful, as it empowers younger individuals to participate more actively in economic activities, including entrepreneurship and property ownership. Businesses will need to adjust their policies and practices to accommodate this change, ensuring that contracts and agreements reflect the new legal capacity standards.

Legal practitioners highlight the importance of understanding the broader judicial discretion granted under the new law. This flexibility allows for more nuanced and context-specific judicial decisions, which can lead to more equitable outcomes in civil disputes.

Conclusion

The enactment of the new Civil Transactions Law marks a significant milestone in the UAE's legal evolution. By modernizing key aspects of civil law, the legislation aims to foster a more dynamic and equitable legal environment that supports the country's ongoing development and modernization efforts.