Related Articles
Stephenson Harwood lawyers named in Thomson Reuters Stand-out Lawyers list
Find out more
Recent case law developments and regulatory updates in the UAE
In this briefing note, we set out some recent case law developments and regulatory updates impacting the maritime industry in the United Arab Emirates.
Summary of recent case developments
Stricter ship arrest procedures
- Abu Dhabi and Dubai courts are adopting a stricter, document‑driven approach to granting precautionary ship arrests by requiring clear, written evidence of the maritime debt.
- Courts in Sharjah and the Northern Emirates remain more flexible in granting arrests based on broader documentary support.
Clarification on the statutory time limit for initiating the substantive proceedings following the issuance of a ship arrest order
- The Abu Dhabi Court of Cassation has confirmed that the five‑business‑day period for initiating the substantive legal proceeding after a ship arrest order has been issued starts from the date of actual execution, as opposed to the order’s issuance, providing greater clarity.
Limitation on executory ship arrests in Dubai
- Dubai courts have recently limited executory ship arrests to maritime debts notwithstanding that the creditor’s claim is a labour claim and has a statutory priority right.
- This contradicts the general principle of Article 391 of the UAE Civil Transactions Law which provides that “All of the property of the debtor stands as security for the performance of his obligations.”
Strengthening of statutory lien over cargo
- Federal Decree‑Law No. 43 of 2023 on the issuance of the UAE Maritime Law strengthens the statutory lien over cargo for unpaid freight and demurrage.
- It introduces a court‑supervised process for enforcing such liens, ensuring greater legal certainty for all parties involved.
Amendments to UAE civil procedures law
- Recent amendments to the UAE Civil Procedures Law came into effect on 2 January 2026.
- It is no longer permissible to submit formal statements of appeal without detailed appeal grounds.
- The scope for filing cassation appeals and appeals by the public prosecution has been extended to include “orders” and not merely “judgments”.
New UAE civil transactions law: key changes
A new Civil Transactions Law has been enacted by virtue of Federal Decree No. 25 of 2025, replacing Federal Law No. 5 of 1985, effective from 01 June 2026. Key provisions include:
Age of majority
- Revised from 21 Lunar years to 18 Gregorian years.
Sharia application
- In the previous law, the judge was mandated to apply the Maliki & Hanbali schools, then Shafe’i & Hanafi. However, the new law gives the judge the right to follow any school that accommodates the litigant parties’ background and apply the best solution that serves equity, natural justice and public interest.
Ownership of properties
- Addresses the treatment of property owned by foreign individuals who die without legal heirs.
- Financial assets situated within the UAE are to be converted into a charitable endowment and administered under the supervision of the competent authority.
Assignment of rights
- Articles 405–413 create a clear framework allowing a creditor to assign its rights without requiring the debtor’s consent.
- Includes notice/acceptance mechanics and related protections.
Pre‑contractual representations and statements
- Article 121 introduces a statutory regime regulating negotiations before contract formation.
- Parties must conduct negotiations in good faith; bad faith can result in liability for actual damages.
Duty to disclose material information
- Parties must disclose any information decisive to the other party’s consent.
- The duty to disclose is mandatory and cannot be waived or excluded by agreement.
- Breach may lead to contract annulment.
Framework agreements
- Recognises framework agreements as contracts defining essential terms for subsequent contracts.
- Terms of framework agreements are considered part of subsequent definitive contracts unless otherwise agreed.
Contact us
Should you have any queries or require specific advice in respect of the above, please do not hesitate to contact us.