r/LetsTalkUAELaw

I had filed a case in the small claims tribunal at DIFC courts, where at the hearing with the judge, the defendant agreed to the payment of an amount at a certain date. This was then agreed by me, and SCT issued a consent order for it.

But, now the date has already crossed and there's no update on the payment yet, despite reminder sent via email.

What way should I proceed with now? Can someone guide?

The original amount was more than AED 15k, but we finally decided to lower it to less than 10k. ​

If you run a business in the UAE or are considering setting one up, Federal Decree-Law No. 20 of 2025 is worth knowing about. The Decree-Law, which took effect in October 2025, amended Federal Decree-Law No. 32 of 2021 on Commercial Companies and introduced important changes concerning ownership structures, shareholder exits and corporate restructuring. 

Here are the changes that affect most business owners in plain language:

LLCs can now have multiple share classes: Before this, all LLC shareholders had equal rights per share. The new law allows different share classes with different voting rights, profit rights, or exit terms similar to how startup structures work globally. This is a big deal for investors and founders negotiating different terms.

Drag-along and tag-along rights are now legally recognised: These are standard investor protections in most countries but weren't formally part of UAE law before. Drag-along: majority shareholders can force minority shareholders to sell in an acquisition. Tag-along: minority shareholders can join a sale on the same terms. Businesses should review their shareholders’ agreements, Memoranda of Association and Articles of Association to determine whether these new options should be incorporated into their corporate documents. 

Moving a company between mainland and free zone is now possible: Previously, if you wanted to move your company from a free zone to the mainland (or vice versa), you essentially had to close one entity and open another. The new law creates a re-domiciliation process so you can transfer without starting over.

Free zone companies now have UAE nationality for legal purposes: A long-standing ambiguity has been resolved. Free zone companies are now confirmed to have UAE nationality under UAE law, which matters for contracts, dispute resolution, and cross-border structuring.

Has anyone here had to restructure a business because of the old rules? Questions about how this affects your setup?

This is probably the biggest legal change in the UAE in decades, and it has had almost no coverage in expat media.

Federal Decree-Law No. 25 of 2025, the new Civil Transactions Law, came into force on 1 June 2026. It replaces the Civil Code that has been in place since 1985. 

What does the Civil Transactions Law cover? Almost everything that isn't criminal or family law: contracts, property obligations, civil liability, compensation, business agreements, pre-contractual negotiations, and more.

What changed that affects ordinary people and businesses?

Pre-contract obligations are now stricter: If you are negotiating a contract and you have information that is essential to the other party's decision, you now have a legal duty to disclose it. Failing to do so can result in the contract being annulled. This affects property purchases, business deals, and commercial agreements.

Liquidated damages in contracts can now be adjusted by courts: If a contract has a penalty clause and a court finds it excessive, the court can now reduce it. Conversely, if the penalty was too low and the other party committed fraud or gross negligence, the court can allow a higher claim.

Contracts signed during negotiations carry more weight: Even preliminary agreements, letters of intent, and MOU-stage discussions carry legal obligations under the new law.

This is a major shift that affects anyone entering contracts in the UAE. Has anyone here had a contract dispute that might look different under these new rules?