{"id":111004,"date":"2026-01-05T00:00:00","date_gmt":"2026-01-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=111004"},"modified":"2026-01-05T03:13:25","modified_gmt":"2026-01-05T03:13:25","slug":"new-rules-for-contracts-asset-ownership-and-buyer-protections-set-under-new-federal-decree-laws","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/01\/05\/new-rules-for-contracts-asset-ownership-and-buyer-protections-set-under-new-federal-decree-laws\/","title":{"rendered":"New rules for contracts, asset ownership, and buyer protections set under new federal decree laws"},"content":{"rendered":"

The UAE has started 2026 with a reset to the rules governing how business <\/strong>gets done. <\/strong>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<\/a> and here<\/a>.<\/p>\n

Contracts, from handshake to courtroom<\/p>\n

The most consequential shift kicks in before contracts are even signed.<\/strong> 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.<\/p>\n

The law also formally recognizes framework agreements<\/strong>, 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. <\/p>\n

Plus: New provisions for \u201ccontracts of works\u201d \u2014 primarily used in construction and engineering \u2014 allow courts to adjust or terminate contracts<\/strong> if \u201cunforeseen circumstances\u201d disrupt the \u201ccontractual equilibrium.\u201d This essentially provides a legal safety net for operators hit by black swan events (like a pandemic or extreme commodity price volatility). <\/p>\n

\n

Companies + continuity <\/p>\n

Cleaner exits: <\/strong>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 \u2014 long-standing pressure points in disputes. <\/p>\n

Judges, prosecutors, court officials, and attorneys will also be prohibited f<\/strong>rom taking<\/strong> shares or interest in disputed shares<\/strong> while a case is active, according to Wam. <\/p>\n

It also requires nonprofits to reinvest earnings to achieve their objectives<\/strong>, and includes added provisions for work and ins. contracts.<\/p>\n

Also: What happens to foreigners\u2019 assets if they have no heir under the new law?<\/strong> They become charitable endowments.<\/p>\n

More buyer protections<\/p>\n

Remedies for defective goods have been made clearer<\/strong>, with options for buyers to reject defective goods, accept them with price reduction, or requesting a defect-free substitute.<\/p>\n

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

\n

Younger entrepreneurs? <\/p>\n

The law now allows minors as young as 15 years old, down from 18, to se<\/strong>ek judicial<\/strong> authorization to manage their own assets. <\/strong>The move lowers the barrier for \u201cteen-preneurs\u201d and young founders to legally control capital and enter into binding agreements.<\/p>\n

\n

Capital markets, with sharper tools-<\/p>\n

A stronger referee: <\/strong>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\u2019s independence and expanding its remit.<\/p>\n

The key update is timing. <\/strong>The CMA can now intervene early when licensed firms show signs of stress \u2014 well before problems become systemic. <\/p>\n

More bite:<\/strong> The regulator\u2019s 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.<\/p>\n

(** Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n","protected":false},"excerpt":{"rendered":"

The laws introduce rules for disclosures of pre-contract negotiations, as well as managing assets as of the age of 15<\/p>\n","protected":false},"author":1,"featured_media":111005,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2414],"tags":[29,7,135,2413],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-111004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-big-story-today","tag-capital-markets","tag-enterpriseam-uae","tag-regulation","tag-the-big-story-today","wpautop","entry"],"acf":{"mongo_id":"28557c18-e1c3-49b3-b88d-7311b3fc3ae5","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/9\/1678.jpg","photo_position":"above","homepage_title":"","full_issue_title":"New 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