Effective 1 June 2026, the UAE's updated Civil Transactions Law introduces a modernised legal framework governing contracts and civil obligations, with a stronger emphasis on good faith, contractual clarity, and updated principles on liability, hardship, and force majeure. This shift represents one of the most significant reforms to the UAE's civil legal landscape in recent years. Businesses operating in the region, whether in commercial contracting, real estate, services, or supply chain, must reassess how they structure, negotiate, and manage contractual relationships going forward. Contracts entered into or renewed after the effective date will be held to the new standards, making early action essential. Key areas of change include updated rules on force majeure and economic hardship, revised liability and indemnification principles, clearer standards for interpreting contractual terms, and strengthened good faith obligations across all stages of contracting. Businesses that fail to align their existing templates and practices with the new framework risk exposure to unforeseen legal and financial consequences. Urgent action is recommended: review your contract templates, negotiation playbooks, and risk allocation mechanisms now. How MBG Can Support Your Business: MBG's legal team is equipped to guide you through every aspect of this transition:

• Legal gap assessment of existing contracts against the new Civil Transactions Law
• Review and redrafting of contract templates to ensure compliance and risk protection
• Advisory on force majeure, hardship, and termination clauses under the new regime
• Support in updating internal contract management and negotiation policies
• Training sessions for legal and commercial teams on key legal changes and practical implications

To find out how MBG can help safeguard your business under the new framework, get in touch with our team today.