Compensation for Moral Damage under UAE’s New Civil Transactions Law: Insights from Recent UAE Case Judgment
Legal systems across jurisdictions commonly allow compensation not only for the direct victim of bodily injury or death but also for the emotional suffering experienced by their family members, spouses, and close relatives. This form of redress falls under the broader category of moral (or non-pecuniary) damages, which aims to address psychological pain, grief, and loss of companionship.
The Position under the Former Civil Transactions Law (Federal Law No. 5 of 1985)
The previous Civil Transactions Law addressed moral damages in Article 293(2), which stated:
“Compensation may be awarded to spouses and close relatives for the moral damage they suffer by reason of the death of the injured party.”
This wording explicitly limited claims by family members to situations where the victim died. It did not expressly extend the right to cases of non-fatal injuries causing disability, disfigurement, or permanent impairment. This gap led to differing interpretations by UAE courts.
Abu Dhabi Court of Cassation Approach (supported by the Federal Supreme Court)
The Abu Dhabi courts took a strict, literal interpretation. They held that Article 293(2) only permitted moral damage claims by spouses and relatives in fatal cases. Where the victim survived — even with severe injuries — family members lacked standing to claim compensation for their own moral suffering. This position was consistently applied in judgments such as Abu Dhabi Court of Cassation Nos. 113 and 114 of 2016 (judgment dated 19 February 2017) and endorsed by the Federal Supreme Court.
Dubai Court of Cassation Approach
In contrast, the Dubai Court of Cassation adopted a more expansive view. It ruled that Article 293 identified eligible claimants (spouses and relatives) specifically for death cases but did not restrict the general right to moral damages only to fatalities. The court reasoned that moral harm naturally affects both the injured person and their family in cases of serious non-fatal injuries. Families often endure ongoing distress from seeing a loved one live with paralysis, disability, or permanent impairment — suffering that can be as profound as, or even greater than, grief from death.
A key Dubai judgment (Cassation No. 307 of 2014, dated 8 January 2015) emphasised that the legislature authorised moral damages in broad terms and that assessment remains within the trial court’s discretion. This approach aimed to ensure fuller reparation for actual harm suffered.
The New Civil Transactions Law (Federal Decree-Law No. 25 of 2025)
To resolve the judicial divergence and reflect practical realities, the UAE legislature introduced clearer rules in the new Civil Transactions Law, which came into force in 2026. Article 254(2) now expressly provides:
“Compensation may be awarded to spouses and close relatives up to the second degree of kinship for the moral damage they suffer by reason of the disability or death of the injured party.”
This reform extends eligibility to both death and disability cases while introducing a statutory limit on the degree of kinship.
Eligible Claimants under Article 254(2):
- Spouses: Husbands or wives (including in cases of polygamy) can claim for moral damage resulting from their spouse’s death or disability.
- Close relatives up to the second degree of kinship: This includes parents, children, siblings, grandparents, and grandchildren. Kinship is determined by blood relation sharing a common ancestor (as defined in Articles 76–79 of the New Law).
Relationships by marriage (affinity), fosterage, or other analogous ties are excluded.
The new provision draws from similar limits in other Arab civil codes (e.g., Egypt, Kuwait, Qatar) while differing from jurisdictions like Jordan and Iraq that impose no fixed degree.
Key Practical Implications of the Reform
- Cap on Degree of Kinship
Claims by relatives beyond the second degree will generally be rejected. While this promotes consistency and ease of application, it may limit justice in exceptional cases where a more distant relative (third or fourth degree) has a particularly close emotional or caregiving bond with the victim. Commentators suggest that allowing limited judicial discretion in such exceptional circumstances could further enhance fairness.
- Extension to Disability Cases
Family members can now seek moral damages for the victim’s disability. The law does not define “disability” by degree (total/partial) or duration (temporary/permanent). Courts retain discretion to evaluate this based on the specific facts, medical evidence, and impact on the family.
Overall Assessment
The amendment in Article 254(2) of the New Civil Transactions Law is a welcome modernisation. It harmonises the statutory text with the progressive stance previously taken by the Dubai courts, eliminates prior inconsistencies between federal and local jurisdictions, and better aligns the law with the real emotional and psychological consequences faced by families of injured or deceased persons.
By providing a clearer, more predictable framework, the reform supports the core principles of civil liability: full reparation, consistency in judicial outcomes, and equitable recognition of moral harm in UAE law.
