Part of our series on the new UAE Civil Transactions Law (Federal Decree-Law No. 25 of 2025), in force since 1 June 2026.
A framework agreement is a contract by which two parties, knowing they will contract together repeatedly, set in advance the essential terms of their future contracts: price, delivery terms, guarantees, liability. Each order or implementation contract then slots into this pre-established framework, without needing to renegotiate everything.
A welcome recognition
French law knows this mechanism well: the 2016 reform defined the framework contract in article 1111 of the Civil Code. Emirati law now takes the same step. Article 138 officially recognises the framework agreement and lays down a valuable default rule: unless otherwise stipulated, the terms predefined in the framework agreement are deemed to form part of each definitive contract concluded under it.
Security and efficiency
The practical benefit is twofold. First, legal certainty: until now, the value of a framework agreement under Emirati law rested on judicial interpretation, with the risk that a judge might recharacterise it as a mere preparatory document devoid of binding force. That risk is now removed. Second, efficiency: recurring business relationships — in trading, services and subcontracting — can be structured once and for all.
One point of vigilance, however. Since the terms of the framework agreement automatically integrate the implementation contracts, its drafting becomes strategic: a poorly calibrated clause will propagate through the entire relationship. The framework agreement is no longer a document of intent; it is the legal matrix of your business.
This is work Prosilame handles: structuring a framework agreement and its call-off contracts.
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This article is general information and does not constitute legal advice. Each situation calls for its own analysis.