The UAE has started 2026 with a reset to the rules governing how business gets done. A slate of new federal decree laws rewires civil transactions, company mechanics, and capital market oversight, tightening the legal plumbing behind the economy, Wam reports here and here.

Contracts, from handshake to courtroom

The most consequential shift kicks in before contracts are even signed. A new Civil Transactions Law now mandates that pre-contract negotiations are explicitly disclosed, meaning silence that once sat in buyer-beware territory can now trigger liability.

The law also formally recognizes framework agreements, giving long-term or recurring relationships a proper legal backbone. Businesses running master services agreements, supply frameworks, or rolling mandates can lock in core terms upfront and execute follow-ons with less friction.

Plus: New provisions for “contracts of works” — primarily used in construction and engineering — allow courts to adjust or terminate contracts if “unforeseen circumstances” disrupt the “contractual equilibrium.” This essentially provides a legal safety net for operators hit by black swan events (like a pandemic or extreme commodity price volatility).

Companies + continuity

Cleaner exits: Corporate provisions were updated to better align civil law with commercial legislation, clarifying what happens when partners exit or businesses wind down. The framework explicitly accommodates single-person companies, tightening certainty around ownership, continuity, and liquidation — long-standing pressure points in disputes.

Judges, prosecutors, court officials, and attorneys will also be prohibited from taking shares or interest in disputed shares while a case is active, according to Wam.

It also requires nonprofits to reinvest earnings to achieve their objectives, and includes added provisions for work and ins. contracts.

Also: What happens to foreigners’ assets if they have no heir under the new law? They become charitable endowments.

More buyer protections

Remedies for defective goods have been made clearer, with options for buyers to reject defective goods, accept them with price reduction, or requesting a defect-free substitute.

The limitation period for defect claims has also been extended to a year, instead of six months. Courts can award fuller compensation where fixed assessments fall short. Disclosure failures now cost more, and fixes come later.

Younger entrepreneurs?

The law now allows minors as young as 15 years old, down from 18, to seek judicial authorization to manage their own assets. The move lowers the barrier for “teen-preneurs” and young founders to legally control capital and enter into binding agreements.

Capital markets, with sharper tools-

A stronger referee: On the markets side, two federal decree laws overhaul the framework governing the Capital Market Authority (CMA) and the regulation of capital markets, reinforcing the watchdog’s independence and expanding its remit.

The key update is timing. The CMA can now intervene early when licensed firms show signs of stress — well before problems become systemic.

More bite: The regulator’s toolkit includes recovery plans, extra capital or liquidity requirements, management changes, or direct intervention, with the CMA acting as a resolution authority in distress scenarios. Enforcement will also be harsher, with fines of up to 10x net incomes gained or losses avoided, plus the option to impose sanctions.

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