The answer depends on what you mean by celebration. If you are talking about religious rituals associated with the arrival of the new year, it is disallowed as it would be practicing an innovation. The Prophet (PBUH) said, “Whoever innovates anything new in this religion, it ought to be rejected.”

Customs, however, are viewed differently by many scholars based on the principle: Permission is the rule with regard to customs; whereas prohibition is the rule with regard to religious rituals.

In other words, as far as customs are concerned, Islam does not restrict them as long as they are free of any violations of principles or fundamental teachings.

We are allowed to celebrate significant moments or events in our life as long as we keep away from extravaganza and wasteful spending, etc.

In conclusion, if someone expresses joy and thanks to Allah for His blessings using the occasion of the arrival of new year, I don’t see how it can be forbidden in Islam.