Galymzhan Alpeis October 12, 2026October 12, 2026 New limitation periods under the UAE Civil Transactions Law When a payment is overdue or a contract has gone wrong, the first question is usually: “Do I have a valid claim?” An equally important question is: “Do I still have time?” The UAE’s new Civil Transactions Law, issued under Federal Decree-Law No. 25 of 2025, came into force on 1 June 2026 and replaced the 1985 Civil Code. Although the familiar 15-year general period remains, the new law shortens certain periods and extends others. Its transitional rules may also affect claims arising before 1 June 2026. Existing disputes and aged receivables may therefore need to be recalculated now. One claim does not fit every deadline Article 429 preserves the general rule: a right is not itself extinguished by time, but the claim may not be heard against a party who denies it after 15 years, unless another period applies. Under Article 434, the clock generally starts when the right becomes due – not necessarily when the contract was signed. For some claims, the trigger may instead be delivery, termination, discovery of damage or another statutory event. The new law contains several important shorter periods: Professional fees – three years: Article 431 reduces the limitation period from five years to three years for claims by doctors, pharmacists, lawyers, engineers, experts, professors, teachers and brokers for professional services and related expenses. Periodic rights – five years: Article 430 applies a five-year period to recurring rights, such as amounts becoming due periodically. Certain supplies and service charges – two years: Article 432 covers specified claims, including goods supplied by merchants or manufacturers to persons who do not trade in those goods, and certain hotel and restaurant charges. Harmful acts – three years: Under Article 258, the period generally runs from awareness of both the damage and the responsible person. A 15-year long-stop runs from the harmful act, subject to the rule for claims arising from a crime. Hidden defects in sold goods – one year: Article 510 extends the former six-month period to one year from the day following delivery. It does not protect a seller who fraudulently concealed the defect, and a longer warranty may apply. Employment claims – two years: Article 865 generally measures the period from termination. For commission, profit-sharing and revenue-percentage claims, time does not begin until the employer provides a detailed statement of final financial entitlements. The article excludes claims involving trade secrets and undisclosed employer information, and special employment legislation must also be considered. A commercial claim may not have 15 years The 15-year period is not the automatic answer to every contractual dispute. Special legislation prevails where it regulates a claim differently. In particular, Article 92 of Federal Decree-Law No. 50 of 2022 concerning Commercial Transactions generally gives five years for claims arising from commercial obligations between merchants, calculated from when the obligation became due, unless a shorter period applies. The same dispute may engage civil, commercial, tortious or sector-specific rules, each with a different clock. Existing claims are also affected Articles 6 and 7 make limitation periods an important exception to the general principle against retrospective application. The new provisions apply to any period that had not expired by 1 June 2026. Where the new law introduces a shorter period, it generally runs from that date. If the time remaining under the old law is shorter, however, that shorter remainder applies. A claim that appeared to have several years left may therefore have an earlier deadline. Conversely, an unexpired hidden-defect claim may benefit from the extension to one year. Each claim must be calculated individually. Can the clock be stopped or restarted? The law permits suspension or interruption in particular circumstances, but ordinary correspondence or settlement discussions may not be enough. Under Article 437, time may be suspended where an acceptable excuse makes it impossible to pursue the right. Under Articles 439 and 440, an express or implied acknowledgment by the debtor, or a judicial demand or measure by the creditor, may interrupt time. A new period generally begins under Article 441. A documented acknowledgment of debt can therefore be important. For the shorter-period rights covered by Articles 430 to 432, Article 433 also provides a 15-year period from maturity where an acknowledgment or instrument has been drawn up. Unanswered reminders or an assurance that the matter “will be resolved” may not protect the creditor. Parties also cannot simply rewrite statutory periods. Article 443 prohibits an advance waiver of the defence or an agreement substituting a different period. Under Article 444, however, the court does not apply the time bar automatically; an interested party must raise it. What should businesses do now? Businesses should: audit overdue receivables, unresolved disputes, warranty issues and potential claims; record the correct triggering date for each claim rather than relying only on the contract date; identify whether the Civil Transactions Law, Commercial Transactions Law or another special statute applies; preserve contracts, invoices, delivery records, correspondence and any acknowledgment of liability; avoid assuming that negotiations or a legal notice has stopped the clock; and obtain advice early on whether formal proceedings or another protective step is required. Limitation is rarely just a matter of counting years. The result depends on the legal characterisation, the trigger date, any suspension or interruption and the transitional rules. Fichte & Co Legal can assist with reviewing existing and potential claims, calculating the applicable deadlines under the new law and advising on the steps required to preserve your rights. This article is intended for general information only and does not constitute legal advice. Specific advice should be obtained in relation to individual circumstances.
