Civil Law and UAE Application of Foreign Law Principles

1. Introduction

The application of foreign law in the UAE arises mainly in international civil and commercial disputes involving parties, contracts, property, corporations, family relationships, or transactions connected with more than one country.

The basic question is:

When a UAE court hears a dispute containing a foreign element, when should it apply UAE law and when should it apply the law of another country?

UAE private international law generally recognizes that a foreign law may govern a dispute where the UAE's conflict-of-laws rules designate that law. However, the application of foreign law is subject to important limitations, particularly public policy, mandatory UAE rules, procedural law, proof of foreign law, and the nature of the relevant legal relationship.

A useful distinction is:

• Choice of law → determining which country's substantive law governs.
• Proof of foreign law → establishing the content of that foreign law before the UAE court.
• Application of foreign law → applying the established foreign rules to the facts.
• Public-policy control → refusing application of foreign rules that fundamentally conflict with UAE public order or morality.

2. Meaning of Foreign Law

Foreign law means the law of a country other than the UAE that becomes relevant to a dispute before a UAE judicial or arbitral forum.

For example:

• A UAE company enters into a contract with a French company containing a French-law clause.
• Two foreign companies conclude a contract connected with Dubai.
• A succession dispute concerns assets and a deceased person connected with another country.
• A foreign company owns property or conducts business in the UAE.
• A cross-border tort occurs partly inside and partly outside the UAE.

The UAE court must determine whether the foreign legal system should govern the relevant issue.

3. Sources of UAE Rules on Foreign Law

The principal sources include:

1. UAE Civil Transactions legislation and conflict-of-laws provisions.
2. UAE procedural legislation.
3. UAE commercial legislation.
4. UAE Arbitration Law.
5. UAE Evidence Law.
6. International treaties and conventions applicable in the UAE.
7. Contractual choice-of-law clauses.
8. Established UAE judicial principles.
9. Where relevant, Islamic Sharia principles and UAE public policy.

The new Federal Decree-Law No. 25 of 2025 promulgating the Civil Transactions Law, effective from 1 June 2026, is particularly important for the modern UAE civil-law framework.

However, many important UAE judicial decisions concerning conflict of laws were decided under the former 1985 Civil Transactions Law. Those decisions remain useful for understanding UAE private-international-law methodology, but they should not automatically be treated as interpretations of every provision of the new 2025 legislation.

4. Territoriality and Extraterritoriality

UAE private international law balances two principles.

Territoriality

UAE law normally governs matters strongly connected with UAE territory, particularly:

• UAE real estate;
• UAE public law;
• UAE regulatory requirements;
• UAE procedural matters;
• mandatory UAE rules.

Extraterritorial application

Foreign law may govern matters where the conflict-of-laws rules identify a foreign legal system as the appropriate law.

Thus, a UAE court does not automatically apply UAE substantive law merely because the proceedings are taking place in the UAE.

5. Substantive Law and Procedural Law

One of the most important principles is the distinction between substantive law and procedural law.

Substantive law

Foreign law may govern questions such as:

• contractual rights;
• contractual obligations;
• validity of certain transactions;
• liability;
• damages;
• ownership in appropriate circumstances;
• succession;
• corporate relationships.

Procedural law

The UAE court generally applies its own procedural law to proceedings before it.

Therefore:

Foreign substantive law may apply, but UAE procedural law generally governs the litigation itself.

This reflects the traditional principle lex fori—the law of the forum.

6. Choice of Law in Contracts

Contractual disputes are among the most important areas for application of foreign law.

Commercial parties frequently specify:

“This agreement shall be governed by the laws of England and Wales.”

or:

“This agreement shall be governed by Singapore law.”

A UAE court or arbitral tribunal may recognize such a choice where legally permissible.

However, contractual freedom is not unlimited.

The parties cannot use a foreign-law clause simply to defeat:

• mandatory UAE legislation;
• public policy;
• mandatory regulatory requirements;
• rules concerning UAE immovable property;
• certain statutory protections.

7. Express Choice of Foreign Law

An express choice-of-law clause provides the clearest situation.

For example:

Dubai company + German company + UAE arbitration + German governing law

The parties may have deliberately separated:

• seat/forum → UAE;
• procedural framework → UAE;
• substantive governing law → German law.

This is legally different from saying that UAE law governs the entire relationship.

8. Implied Choice of Law

Sometimes the parties do not expressly select a governing law.

The court may therefore examine the circumstances surrounding the transaction, including:

• place of performance;
• place of contracting;
• location of parties;
• currency;
• language;
• contractual terminology;
• commercial connection;
• nature of transaction;
• dispute-resolution clause.

The objective is to identify the legal system having the strongest or most appropriate connection under the applicable UAE conflict-of-laws rules.

9. Absence of a Choice-of-Law Clause

Where there is no valid choice-of-law clause, the court applies the relevant UAE conflict-of-laws rules.

Depending upon the subject matter, connecting factors may include:

• nationality;
• domicile;
• habitual residence;
• place of conclusion;
• place of performance;
• location of property;
• place where harmful conduct occurred;
• principal place of business.

The applicable connecting factor depends upon the particular legal relationship.

10. Foreign Law Is Not the Same as Foreign Jurisdiction

This distinction is extremely important.

A UAE court can potentially apply foreign substantive law while exercising UAE jurisdiction.

For example:

UAE court + English substantive law

is entirely conceptually possible.

Likewise:

UAE-seated arbitration + foreign substantive law

may be possible.

The forum/seat answers:

Where is the dispute being decided?

The governing law answers:

Which substantive legal rules determine the parties' rights?

These are separate questions.

11. Foreign Law and UAE Public Policy

The strongest limitation on foreign law is public policy and public order.

A UAE court will not normally apply a foreign rule merely because it has been designated by a conflict-of-laws rule if applying that rule would produce a result fundamentally incompatible with UAE public order or morality.

This safeguard is particularly important in matters involving:

• family status;
• morality;
• mandatory economic regulation;
• certain property rights;
• sanctions;
• illegality;
• fundamental principles of UAE law.

Public policy should not be confused with every mandatory rule.

The public-policy exception is generally reserved for more fundamental incompatibilities.

12. Mandatory UAE Rules

Certain UAE rules may apply irrespective of the parties' choice of foreign law.

These can include rules relating to:

• public regulation;
• licensing;
• certain employment protections;
• real estate;
• insolvency;
• regulatory compliance;
• public order;
• sanctions and prohibited transactions.

Therefore, a foreign-law clause does not necessarily eliminate all application of UAE law.

13. UAE Immovable Property

A particularly strong principle is lex rei sitae.

This means that rights in immovable property are generally governed by the law of the place where the property is situated.

Thus:

UAE land or real estate → strong application of UAE law.

A foreign governing-law clause in a commercial contract does not necessarily allow parties to bypass mandatory UAE property rules.

This is particularly important for:

• ownership;
• registration;
• mortgages;
• land rights;
• transfer;
• title;
• registration requirements.

14. Personal Status and Foreign Law

Foreign-law issues can also arise in:

• marriage;
• divorce;
• maintenance;
• succession;
• capacity;
• guardianship;
• inheritance.

These areas are particularly sensitive because UAE courts may apply specialized conflict-of-laws provisions while also considering public policy and mandatory rules.

A foreign rule may therefore be rejected where its consequences conflict fundamentally with UAE legal principles.

15. Foreign Corporate Law

Corporate disputes can raise questions such as:

• validity of incorporation;
• legal personality;
• authority of directors;
• capacity of a company;
• internal corporate relationships;
• shareholder rights.

The law of the company's incorporation or relevant corporate connection may become important.

However, when a foreign company operates in the UAE, UAE regulatory and mandatory requirements can still apply to its activities within the UAE.

16. Foreign Law Must Be Established

A practical problem is:

How does the UAE court know what the foreign law actually says?

The party relying upon foreign law should generally establish its content through appropriate evidence.

The court cannot simply assume that a foreign statute or foreign judicial rule has the same meaning as UAE law.

Evidence may include:

• certified legislation;
• official legal publications;
• expert opinions;
• authenticated legal materials;
• foreign judicial decisions;
• translations;
• legal opinions from qualified practitioners or experts.

17. Role of Experts

Foreign-law experts can be particularly important.

An expert may explain:

• the foreign statute;
• relevant case law;
• interpretation adopted by foreign courts;
• relationship between statutory provisions;
• effect of amendments;
• applicable limitation rules;
• contractual interpretation.

However, the expert does not decide the UAE case.

The court remains responsible for determining the legal consequences.

18. Foreign Judicial Decisions as Evidence of Foreign Law

A foreign judgment may sometimes assist in establishing foreign law.

But there is an important distinction between:

1. recognizing a foreign judgment; and
2. proving the content of foreign law.

A foreign judgment does not automatically become binding UAE precedent merely because it is submitted to a UAE court.

It may instead serve as evidence of how the relevant foreign legal system operates.

19. Translation and Authentication

Foreign legislation and judgments commonly need appropriate:

• authentication;
• certification;
• translation into Arabic where required;
• procedural verification.

This is important because UAE judicial proceedings operate within an Arabic-language procedural environment.

A party that relies on foreign law but fails to establish its content adequately may face serious evidentiary difficulties.

20. Court's Role in Applying Foreign Law

Once foreign law is properly established, the UAE court must determine its relevance to the dispute.

The court should distinguish:

• what the foreign law actually provides;
• whether it governs the particular issue;
• whether a UAE mandatory rule overrides it;
• whether public policy prevents its application;
• whether the parties validly selected it.

Therefore, foreign law does not operate automatically merely because one party mentions it.

21. Renvoi

Renvoi is a private-international-law concept concerning a reference by UAE conflict rules to foreign law.

Suppose UAE conflict rules point toward Country X.

The question then arises:

Does “Country X law” mean only Country X's substantive law, or does it include Country X's own conflict-of-laws rules?

If Country X's conflict rules refer the matter back to UAE law or onward to another country, the problem is known as renvoi.

The treatment of renvoi depends upon the particular UAE conflict-of-laws provision and subject matter.

22. Public Policy as a Safety Valve

Public policy prevents the conflict-of-laws system from producing unacceptable results.

The court may therefore ask:

1. Is the foreign law otherwise applicable?
2. What result would its application produce?
3. Is that result fundamentally incompatible with UAE public order or morality?
4. Is the incompatibility sufficiently serious to justify refusing the foreign rule?

This should be a carefully controlled exception, rather than a general reason to ignore foreign law.

23. Application of Foreign Law in Arbitration

Foreign law is particularly common in UAE arbitration.

A contract may provide:

• UAE as seat;
• English law as governing law;
• English-language arbitration;
• ICC/DIAC arbitration.

The tribunal must distinguish:

Seat

Determines the legal framework of the arbitration.

Governing law

Determines substantive contractual rights.

Procedural rules

Determine how the arbitration is conducted.

These three can be different.

24. UAE Courts and Arbitral Tribunals

A UAE-seated tribunal can therefore be required to apply foreign substantive law.

Nevertheless, the award remains subject to mandatory requirements of the UAE arbitration framework, including applicable public-policy considerations at the recognition/enforcement stage.

This prevents parties from treating a foreign-law clause as a complete exemption from UAE mandatory law.

25. Foreign Law and Damages

Foreign law may govern the substantive rules determining:

• whether damages are available;
• types of recoverable loss;
• foreseeability;
• causation;
• limitation;
• contractual damages;
• agreed compensation.

But the UAE court must first determine whether the relevant foreign law actually governs the damages question.

A contract might be governed by foreign law while a separate mandatory UAE rule affects another aspect of the dispute.

26. Foreign Law and Limitation

Limitation is an especially interesting conflict-of-laws issue.

Depending upon the applicable legal framework, limitation may be characterized as:

• substantive; or
• procedural.

The characterization can affect whether foreign or UAE law applies.

Therefore, parties in cross-border litigation should not assume that a foreign governing-law clause automatically resolves every limitation question.

27. Foreign Law and Evidence

A UAE court generally uses UAE procedural/evidentiary rules for proceedings before it.

Thus:

Foreign substantive law ≠ foreign rules of UAE courtroom procedure.

For example, English law may determine contractual liability while UAE procedural rules govern how evidence is presented before a UAE court.

This distinction is particularly important in international commercial litigation.

28. Foreign Law and Digital Contracts

Modern transactions create increasingly complex conflicts.

For example:

UAE customer + U.S. platform + Singapore governing-law clause + cloud servers in Europe.

The court may have to consider:

• contractual choice;
• consumer protection;
• data regulation;
• mandatory UAE law;
• place of performance;
• electronic evidence;
• public policy.

A single transaction can therefore involve several legal systems.

29. Foreign Law and Artificial Intelligence

AI creates new foreign-law questions.

For example, an AI platform may be:

• incorporated in one country;
• hosted in another;
• contracted with a UAE business;
• processing UAE users' information;
• using an AI model developed elsewhere.

The governing-law clause may identify foreign law, but mandatory UAE requirements may still apply to activities occurring in the UAE.

AI-related disputes therefore make the distinction between contractual choice of law and mandatory regulatory law increasingly important.

30. Foreign Law and Good Faith

Foreign law may prescribe standards concerning:

• contractual good faith;
• interpretation;
• cooperation;
• mitigation;
• abuse of contractual rights.

The UAE court must determine whether those standards form part of the applicable substantive foreign law.

At the same time, UAE mandatory principles may restrict contractual conduct even where a foreign law clause exists.

31. Foreign Law and Abuse of Rights

The UAE legal system recognizes the principle against abusive exercise of rights.

A leading authority is:

Abu Dhabi Court of Cassation, Case No. 55/2016, decided 16 January 2017

The court addressed the principle of abuse of rights under the former Civil Transactions Law.

The broader significance for foreign-law disputes is that contractual freedom and exercise of legal rights remain subject to fundamental legal limits.

This case arose under the former 1985 Civil Transactions Law and should therefore be treated as historical/doctrinal authority, not as a direct interpretation of the 2025 Civil Transactions Law.

32. Case Law 1 — Abu Dhabi Court of Cassation, Case No. 55/2016

Principle

The court recognized the legal limitations surrounding abusive exercise of rights.

Relevance

In cross-border disputes, a foreign-law clause cannot necessarily be used as a device for abusive conduct that conflicts with mandatory UAE principles.

Importance

The case illustrates the UAE judiciary's broader approach of balancing contractual freedom against fundamental legal standards.

33. Case Law 2 — Dubai Court of Cassation, Civil Appeal No. 6/2017

This case concerned contractual obligations and the significance of good faith in contractual dealings.

Principle

Contractual commitments are to be respected and performed consistently with good faith.

Relevance to foreign law

Where foreign law governs the contract, the court must identify the substantive contractual rules applicable under that law. However, the existence of a foreign-law clause does not mean that contractual conduct is completely removed from mandatory UAE legal scrutiny.

34. Case Law 3 — Abu Dhabi Court of Cassation, Case No. 922/2020

This case concerned arbitration and contractual obligations.

Principle

The court recognized the significance of the parties' agreement and the arbitration framework.

Relevance

The case illustrates an important feature of international disputes:

The law governing the contract and the legal framework governing the arbitration are capable of being distinct.

This is particularly relevant where a UAE-seated arbitration applies foreign substantive law.

35. Case Law 4 — Dubai Court of Cassation, Appeal No. 313/2007

This case concerned contractual termination powers.

Principle

A contractual power cannot necessarily be exercised in an unlimited manner without regard to its legal consequences.

Relevance to foreign law

It demonstrates that the UAE judiciary examines the actual legal effect of contractual provisions rather than merely accepting a party's characterization of a contractual right.

In a cross-border dispute, the same analytical approach is important when determining the effect of a foreign-law contractual clause.

36. Case Law 5 — Dubai Court of Cassation, Appeal No. 440/2016

This case concerned contractual termination and good faith.

Principle

Contractual rights must be exercised within the legal framework governing the agreement and cannot be viewed entirely in isolation from good-faith principles.

Relevance

Where foreign law governs, the court must first identify the foreign rule, but it must also consider whether applying that rule in the particular circumstances would conflict with mandatory UAE principles.

37. Case Law 6 — Dubai Court of Cassation, Case No. 266/2008

This case concerned causation and concurrent causes in a construction dispute.

Principle

A court must examine the causal relationship between conduct and damage rather than simply attributing the entire loss to one event without proper analysis.

Relevance to foreign law

Where foreign substantive law governs damages, the foreign law may determine the applicable causation test. However, the UAE court still has to undertake the factual and evidentiary assessment through its own judicial process.

38. Case Law 7 — Dubai Court of Cassation, Case No. 1/2006

This decision also concerned concurrent causes and allocation of responsibility.

Principle

Where multiple circumstances contribute to damage, responsibility must be analyzed through causation rather than through an unsupported assumption of liability.

Cross-border significance

It demonstrates the importance of separating:

• governing law;
• factual findings;
• evidence;
• causation.

This distinction becomes particularly important where foreign law governs substantive liability.

39. Case Law 8 — UAE Federal Supreme Court, Civil Appeal No. 79/2020

Principle

The court discussed the nature and evidentiary significance of an admission.

An admission may establish recognition of a right or obligation, subject to the applicable evidentiary framework.

Relevance

In foreign-law disputes, documentary and electronic admissions may help establish the factual foundation upon which the applicable foreign law is applied.

The case is not a direct foreign-law case, but provides an important evidentiary principle.

40. Case Law 9 — UAE Federal Supreme Court, Commercial Appeal No. 215/2020

Principle

The court addressed reliance upon expert reports and emphasized that a judgment should not simply adopt an expert's conclusion without adequate judicial reasoning concerning material issues.

Relevance to foreign law

This is especially important when a party relies upon a foreign-law expert.

A foreign-law opinion may assist the court, but:

The expert does not replace the court's legal judgment.

The court must determine what weight should be given to the foreign-law material.

41. Case Law 10 — UAE Federal Supreme Court, Penal Cassation No. 1093/2019

Principle

The trial court has substantial authority to evaluate evidence and determine which evidence is reliable and probative.

Relevance

Where foreign law is proved through expert reports, foreign documents, translations, or judicial materials, the court retains authority to assess their evidentiary value.

This is an analogical evidentiary authority, not a direct conflict-of-laws precedent.

42. Case Law 11 — UAE Federal Supreme Court, Penal Cassation No. 660/2023

Principle

The court may form its conclusion from the evidence presented when the inference is rationally supported by the record, while material defenses must be properly addressed.

Relevance

This principle is useful when parties disagree about the content or interpretation of foreign law.

The court should not rely upon an unsupported assertion that a foreign legal system produces a particular result.

43. Case Law 12 — UAE Federal Supreme Court, Penal Cassation No. 1422/2022, decided 21 February 2023

The court emphasized that evidence supporting a judicial conclusion must have sufficient probative force and that the court must examine the evidence upon which its decision rests.

Relevance to foreign law

The same reasoning is important when foreign law is established through:

• foreign legislation;
• expert opinions;
• translated judgments;
• electronic legal materials;
• foreign legal databases.

The court should have a reliable evidentiary foundation for determining the content of foreign law.

44. Classification of the Case Law

It is important not to misrepresent these authorities.

Important: Published UAE jurisprudence specifically addressing every aspect of foreign-law application is comparatively limited. Accordingly, several of the above decisions are foundational or analogical authorities, rather than direct precedents deciding a foreign-law conflict.

45. Foreign Law and Burden of Proof

A party relying on foreign law should normally provide sufficient material to enable the court to understand:

1. the relevant foreign provision;
2. its authentic wording;
3. its interpretation;
4. its temporal applicability;
5. its relationship to the facts;
6. relevant foreign jurisprudence where necessary.

Merely stating:

“English law allows this”

or

“French law prohibits this”

is generally insufficient as a sophisticated litigation strategy.

46. What Happens if Foreign Law Cannot Be Established?

If the party relying upon foreign law fails to establish its content adequately, the court may have difficulty applying it.

The consequences depend upon:

• the relevant UAE conflict rule;
• evidentiary circumstances;
• whether the foreign law was properly invoked;
• whether the court can independently establish the applicable rule;
• the procedural posture of the case.

Therefore, proving foreign law should be treated as a substantive litigation task, not merely a technical formality.

47. Foreign Law and Public Policy: Practical Test

A useful analytical sequence for a UAE court is:

Step 1

Identify the relevant legal relationship.

Step 2

Apply UAE conflict-of-laws rules.

Step 3

Determine whether the parties selected foreign law.

Step 4

Establish the content of the foreign law.

Step 5

Determine whether UAE mandatory law applies.

Step 6

Consider public policy.

Step 7

Apply the appropriate law to the facts.

Step 8

Apply UAE procedural law to the litigation.

48. Foreign Law and International Commercial Contracts

Consider:

UAE company → Japanese company

Contract:

• performance in UAE;
• governing law: Japanese law;
• arbitration: Dubai;
• language: English.

The tribunal may apply:

Japanese law → substantive contractual rights.

UAE arbitration law → arbitration's legal framework as applicable to the seat.

UAE court procedure → where court proceedings concerning the arbitration arise.

This demonstrates why seat, forum, and governing law must not be confused.

49. Foreign Law and UAE Public Order

Even when a foreign-law clause is valid, the court may refuse a particular result if it would violate fundamental UAE public-policy principles.

Therefore:

Party autonomy is a starting point, not an absolute rule.

This principle is particularly important in areas involving:

• illegality;
• morality;
• mandatory regulatory legislation;
• certain family matters;
• property;
• sanctions;
• fundamental procedural fairness.

50. Foreign Law and Recognition of Foreign Judgments

Foreign-law questions should also be distinguished from recognition and enforcement of foreign judgments.

A UAE court may be asked:

1. What law governs the underlying dispute?
2. Should a foreign judgment be recognized?
3. Should the foreign judgment be enforced?

These are different legal questions.

A foreign judgment may be recognized only after the relevant UAE requirements for recognition and enforcement have been satisfied.

51. Foreign Law and International Treaties

Treaties can significantly affect the analysis.

Where the UAE is party to an applicable international convention, the convention may provide rules concerning:

• jurisdiction;
• recognition;
• enforcement;
• arbitration;
• international commercial transactions;
• judicial cooperation.

Therefore, conflict-of-laws analysis should always ask:

Is there an applicable treaty that modifies the domestic conflict-of-laws rules?

52. Foreign Law and Arbitration Agreements

An arbitration clause may itself have a governing law different from the substantive contract.

For example:

• main contract → English law;
• arbitration agreement → UAE law;
• seat → Dubai.

This distinction can become critical when determining:

• validity of arbitration agreement;
• authority of tribunal;
• separability;
• scope of arbitration;
• enforcement.

53. Foreign Law and Non-Signatories

Cross-border disputes involving:

• parent companies;
• subsidiaries;
• guarantors;
• agents;
• affiliates;

may raise questions concerning which law determines whether a non-signatory is bound.

The applicable law may differ depending upon whether the issue concerns:

• contract formation;
• agency;
• corporate personality;
• arbitration;
• tort liability.

Therefore, “governing law of the contract” may not automatically answer every legal issue.

54. Foreign Law and Tort Claims

For cross-border torts, relevant connecting factors can include:

• place of harmful conduct;
• place where damage occurred;
• residence of parties;
• relationship between parties;
• applicable statutory conflict rules.

The court must therefore identify the appropriate connecting factor rather than mechanically applying the law of the defendant's nationality.

55. Foreign Law and Consumer Transactions

Consumer contracts create additional limitations.

A foreign-law clause may not necessarily eliminate mandatory protections applicable to consumers in the UAE.

Courts may therefore distinguish:

• genuinely negotiated international commercial contracts; and
• standard-form consumer agreements.

This is particularly relevant to:

• online platforms;
• e-commerce;
• digital subscriptions;
• financial technology;
• cross-border marketplaces.

56. Foreign Law and Employment

Employment relationships involving UAE employees and foreign employers can generate conflict-of-laws issues.

Even where a contract selects foreign law, mandatory UAE employment legislation may remain relevant to employment performed in the UAE.

Thus, parties should not assume:

“Foreign governing law = complete exclusion of UAE employment law.”

57. Foreign Law and Insolvency

Cross-border insolvency presents particularly complex questions concerning:

• debtor assets;
• creditor priorities;
• security interests;
• recognition of foreign proceedings;
• insolvency representatives;
• avoidance transactions.

The law governing the underlying transaction may differ from the law governing insolvency proceedings.

This is another example of issue-by-issue choice of law.

58. Foreign Law and Digital Assets

Digital assets create new conflicts involving:

• location of digital property;
• domicile of owner;
• location of exchange;
• governing law;
• custody agreement;
• blockchain infrastructure.

A blockchain transaction may have participants in multiple jurisdictions.

The UAE court must therefore identify the relevant legal relationship before deciding which conflict-of-laws rule applies.

59. Foreign Law and AI-Generated Evidence

Where a foreign-law expert submits an AI-assisted legal analysis, the court should distinguish:

• authentic foreign legislation;
• foreign judicial authority;
• human expert opinion;
• AI-generated summary.

AI should not be treated as an independent source of law.

The court should require reliable verification of the underlying foreign legal materials.

This is especially important because AI systems may:

• hallucinate cases;
• confuse repealed legislation;
• misstate foreign statutes;
• produce fabricated citations;
• overlook jurisdictional differences.

60. Practical Litigation Checklist

A party relying upon foreign law should ideally establish:

Legal basis

• Why foreign law applies.
• Which UAE conflict rule supports the application.

Contractual basis

• Governing-law clause.
• Arbitration clause.
• Jurisdiction clause.

Content

• Official foreign legislation.
• Relevant foreign case law.
• Current version of the law.

Interpretation

• Expert opinion where appropriate.
• Foreign judicial interpretation.
• Relevant legal commentary.

Authentication

• Proper certification.
• Appropriate translation.
• Procedural compliance.

UAE limitations

• Mandatory UAE law.
• Public policy.
• Public order.
• UAE property rules.
• Regulatory requirements.

61. Key Differences: UAE Law vs Foreign Law

62. Core Principles

The UAE approach to foreign law can therefore be summarized through ten principles:

1. Foreign law can be applied by UAE courts.
2. A foreign-law clause may be respected where legally valid.
3. Choice of law is distinct from jurisdiction.
4. Choice of law is distinct from arbitration seat.
5. UAE procedural law generally governs proceedings before UAE courts.
6. Foreign law must be adequately established.
7. Experts may assist in establishing foreign law.
8. Mandatory UAE rules can override contractual choice.
9. Public policy limits the application of foreign law.
10. UAE property and other strongly territorial matters receive particularly strong protection under UAE law.

63. Effect of the 2025 Civil Transactions Law

The transition to Federal Decree-Law No. 25 of 2025, effective 1 June 2026, should be kept in mind when researching current disputes.

Older UAE judgments were frequently decided under the 1985 Civil Transactions Law. They remain valuable for understanding:

• judicial methodology;
• contractual principles;
• good faith;
• abuse of rights;
• evidence;
• interpretation.

But lawyers should identify the statutory provision applicable on the relevant date before relying on an older judgment as controlling authority.

This temporal distinction is particularly important in a 2026 UAE litigation strategy.

64. Conclusion

The UAE does not follow a simplistic rule that UAE courts always apply UAE substantive law. Its private international law framework permits the application of foreign law where the relevant conflict-of-laws rules, contractual choice, or international legal framework point toward that foreign legal system.

At the same time, foreign law operates within important boundaries.

The principal safeguards are:

• UAE mandatory legislation;
• public order;
• public morality;
• territorial rules;
• UAE property law;
• procedural law;
• evidentiary requirements;
• recognition and enforcement rules.

The most important practical distinction is therefore:

A UAE court can apply foreign substantive law without becoming a foreign court.

The court remains a UAE court, applies UAE procedural rules, evaluates the evidence itself, and ensures that application of foreign law does not undermine mandatory UAE law or fundamental UAE public policy.

Finally, UAE case law directly devoted to every aspect of foreign-law application is relatively limited. The cited Cassation decisions therefore include both directly relevant cross-border/arbitration authorities and foundational evidentiary, contractual, causation, and public-policy authorities. They should be used with that distinction clearly stated, especially because many precedents pre-date the 2025 Civil Transactions Law effective 1 June 2026.