Legal experts and engineering consultancies across the Emirates are dissecting the operational realities of the UAE’s New Civil Code (Federal Decree-Law No. 25/2025), which has now superseded the decades-old legal framework governing construction contracts. While the updated code preserves the fundamental baseline for “muqawala” (construction) agreements—including standard contractor liabilities and materials provisioning—it introduces a highly anticipated, distinct hardship mechanism. Under the old system, contractors facing sudden, severe market distortions or supply chain price spikes had limited recourse to adjust contract terms without protracted litigation. The modernized articles provide a clearer administrative path to rebalance lopsided financial obligations during exceptional economic disruptions, offering a vital legal safeguard for multinational engineering firms and expatriate project management teams driving the UAE’s multi-billion-dollar infrastructure pipeline.
