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ARTICLE · 29 MAY 2026

Construction Law In Transition: Key Changes Under The UAE’s New Civil Code

HAS Law Firm
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The United Arab Emirates is set to replace its 1985 Civil Code with a comprehensive New Civil Code effective June 2026, introducing significant reforms to construction contract law. While preserving the fundamental framework including the mandatory ten-year structural defect warranty, the new legislation brings material changes such as statutory termination rights for convenience, expanded engineer liability, enhanced contractor notification obligations, and refined risk allocation mechanisms that will resh

United Arab EmiratesReal Estate and Construction
Rachel Mannam
Rachel Mannam
Zuhaib Habib
Zuhaib Habib
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INTRODUCTION

For approximately four decades, construction contracts in the United Arab Emirates (“UAE”) have been governed by Federal Law No. 5 of 1985 concerning the Civil Transactions Law of the UAE (the “1985 Civil Code”). However, the 1985 Civil Code is now set to be replaced by Federal Decree Law No. 25 of 2025 concerning the Civil Transactions Law of the UAE (the “New Civil Code”), enacted on 20 September 2025 and coming into full effect on 1 June 2026 (the “Effective Date”).

From the Effective Date onwards, construction contracts across the UAE, including contracts entered into between developers, employers, contractors, subcontractors, consultants and supervising engineers (collectively, the “Construction Parties”), shall be governed by the New Civil Code.

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