Civil Law And Uae Foreign Law Application In Courts .

CIVIL LAW AND UAE — FOREIGN LAW APPLICATION IN UAE COURTS

1. Introduction

Foreign law application arises when a dispute before a UAE court contains a foreign element and the UAE's conflict-of-laws rules designate the law of another country as the governing law.

Examples include:

a contract between companies domiciled in different countries;

a marriage concluded abroad;

property situated outside the UAE;

a foreign company's corporate status;

a tort occurring abroad;

succession involving foreign nationality;

an international commercial transaction;

a contract expressly choosing English, French, Indian or Singaporean law.

The UAE court does not simply apply UAE law because the proceedings are taking place in the UAE.

The court first asks:

Which legal system does the UAE's conflict-of-laws framework designate as applicable?

If the answer is foreign law, the court may apply that foreign law, subject to statutory limitations such as renvoi, public order, public morals and the ability to establish the content of the foreign law.

The current Civil Transactions Law expressly incorporates this methodology.

2. Foreign Law and UAE Courts

Foreign law may become applicable when the UAE's rules of attribution/conflict of laws point toward another country's legal system.

The basic sequence is:

Foreign Element

UAE Conflict-of-Laws Rule

Identification of Applicable Law

Foreign Law, if designated

Proof/Determination of Content

Public-Order Review

Application by UAE Court

This means that foreign law is not applied merely because a party requests it.

There must first be a legal basis for selecting that foreign law.

3. Current Statutory Framework

The most important current provisions are found in Federal Decree by Law No. 25 of 2025 on the Civil Transactions Law.

Important provisions include:

Article 11

Civil status and legal capacity are generally governed by nationality law, while foreign legal persons are governed by the law of the country where their actual principal management centre is located; where they conduct an activity in the UAE, UAE law applies to that activity.

Article 18

Rights in immovable property are governed by the law of the place where the immovable property is located.

Article 19

Contractual obligations are governed by the law expressly chosen by the parties. If there is no choice, the statute provides connecting factors including common domicile and the place of performance of the main obligation. Contracts concerning immovable property are governed by the law of the property's location.

Article 20

Non-contractual obligations are generally governed by the law of the country where the event giving rise to the obligation occurred, subject to the statutory exception concerning conduct abroad that is lawful in the UAE.

Article 21

Jurisdictional and procedural matters are governed by the law of the country in which the proceedings are instituted or the procedure undertaken.

Article 22

The preceding conflict-of-laws provisions yield where a special law or applicable international treaty provides otherwise.

Article 23

The principles of private international law provide the reference where a conflict-of-laws issue is not specifically regulated by the preceding provisions.

Article 27

Where the designated foreign country contains multiple legal systems, the internal law of that country determines which legal system applies.

Article 28

Where foreign law is designated, the UAE court applies its internal substantive provisions, excluding its private international law rules. The article also recognises a return to UAE law where the applicable foreign private international law rules refer the matter back to UAE law.

Article 29

A designated foreign-law provision cannot be applied if it conflicts with public order or public morals in the UAE.

Article 30

If it is impossible to establish the applicable foreign law or determine its meaning, UAE law applies.

4. Foreign Law Is Not Automatically Applicable

The first principle is:

A foreign element does not automatically produce application of foreign law.

There must be an applicable UAE conflict-of-laws rule.

For example:

A UAE court hears a dispute involving:

UAE company + French company

This does not automatically mean:

UAE law; or

French law.

The court must examine:

contract;

choice-of-law clause;

domicile;

place of performance;

subject matter;

applicable statutory connecting rule;

mandatory UAE law.

5. Party Choice of Law

One of the most important mechanisms is party autonomy.

Under current Article 19, contractual obligations, as to form and substance, are generally governed by the law expressly chosen by the parties.

Example

A UAE company and an Indian company conclude a supply contract stating:

"This contract shall be governed by Indian law."

Subject to applicable mandatory rules and other statutory limitations, the UAE court may apply the chosen Indian law to the contractual issues.

Flash formula

Contract + Valid Choice-of-Law Clause = Chosen Law

But:

Chosen Law ≠ Unlimited Freedom to Exclude Mandatory UAE Rules

6. When There Is No Choice-of-Law Clause

If the parties do not choose the governing law, Article 19 provides statutory connecting factors.

The sequence broadly considers:

common domicile;

if domiciles differ, the place where the main contractual obligation is to be performed;

circumstances indicating another intended law.

Therefore, the court undertakes a structured conflict-of-laws analysis rather than selecting the law merely because the claimant prefers it.

7. Immovable Property

Immovable property is treated particularly strictly.

Under Article 18, ownership and other real rights concerning immovable property are governed by the law of the place where the property is located.

Example

A UAE court is dealing with ownership of land in France.

The fact that the parties are UAE residents does not ordinarily transform the property-law question into a UAE-law question.

The lex situs principle applies:

Land → Law of the place where the land is situated.

8. Foreign Legal Persons

The current Article 11 provides a specific rule for foreign legal persons.

Generally:

Foreign legal person → law of country of actual principal management centre

But:

Activity conducted in UAE → UAE law applies to that activity.

This prevents a foreign corporation from relying on its home law to avoid mandatory UAE rules governing its UAE operations.

9. Non-Contractual Obligations

Article 20 addresses non-contractual obligations.

The general connecting factor is:

Law of the country where the event giving rise to the obligation occurred.

This may become relevant in:

negligence;

product liability;

property damage;

environmental harm;

cross-border accidents;

other civil wrongs.

The current Code also contains a specific exception where conduct occurs abroad but is lawful in the UAE.

10. Procedural Law Versus Substantive Foreign Law

A fundamental distinction is:

Substantive law

Determines:

rights;

obligations;

contractual validity;

liability;

damages;

ownership;

other substantive issues.

Procedural law

Determines:

filing;

pleadings;

evidence procedure;

court procedure;

procedural time limits;

judicial process.

Under current Article 21:

Judicial jurisdiction and procedural matters are governed by the law of the country where the proceedings are instituted or procedures undertaken.

Therefore:

Foreign substantive law + UAE court procedure

is entirely possible.

11. Example: English Contract in a UAE Court

Suppose:

UAE court has jurisdiction;

UAE company and English company have a contract;

contract expressly chooses English law.

The court may apply:

English law → substantive contractual issues

while applying:

UAE procedural law → proceedings before the UAE court

Thus, the case is not necessarily "English law versus UAE law."

Both systems may operate in different legal dimensions.

12. Renvoi

Renvoi means that a foreign country's conflict-of-laws rules refer the issue back to another legal system.

Current Article 28 adopts a controlled approach.

The general rule is:

If foreign law is selected, the UAE court applies the foreign law's internal provisions rather than its private international law rules.

However, Article 28(2) recognises application of UAE law where the relevant foreign private international law rules refer the matter back to UAE law.

Example

UAE conflict rule:

Apply French law

French conflict rule:

Refer matter to UAE law

Article 28(2):

UAE law may apply

13. Foreign Law and Public Order

Foreign law is not absolute.

Current Article 29 prevents application of foreign-law provisions that are contrary to UAE public order or public morals.

This is known as the:

Public-order exception

It is an important safety valve in private international law.

14. Why Public Order Matters

The public-order exception protects fundamental UAE legal values from the application of a foreign rule that would produce an unacceptable result within the UAE legal system.

However, the existence of a difference between UAE law and foreign law does not automatically mean that the foreign rule violates public order.

The analysis must focus on the actual foreign rule and its actual effect in the particular dispute.

Flash formula

Foreign Law

  •  

Conflict Rule

  •  

Public-Order Review

=

Potential Application

15. Proving Foreign Law

One of the most difficult practical issues is establishing the content of foreign law.

A party relying upon foreign law may need to provide:

official statutory text;

certified copy;

current version;

amendments;

official translation;

relevant foreign judicial decisions;

legal opinions;

expert evidence where appropriate;

evidence establishing that the law remains in force.

The UAE approach is particularly important because the court cannot sensibly apply a foreign rule whose content has not been established.

16. Article 30 — Failure to Establish Foreign Law

Current Article 30 provides:

UAE law applies if it is impossible to establish the applicable foreign law or determine its meaning.

This creates an important fallback mechanism.

Sequence:

Foreign law designated

Attempt to establish content

Content successfully established

→ Apply foreign law

OR

Content cannot be established/determined

→ Apply UAE law

17. Important Case Law

CASE 1 — Dubai Court of Cassation, Personal Status Appeal No. 501 of 2021

Decision: 12 January 2022

This is one of the most important UAE authorities concerning foreign law before an onshore UAE court.

The dispute concerned personal-status issues between foreigners and the application of foreign law.

The Dubai Court of Cassation considered the effect of the amended Personal Status Law and the relevant conflict-of-laws provisions of the Civil Transactions Law.

The court required the party relying upon foreign law to establish the relevant foreign law before the court, including the applicable legal provisions.

The case is particularly significant because it dealt with the relationship between:

the foreign law relied upon by a litigant;

the UAE conflict-of-laws rules;

proof of foreign law;

the consequence of failure to establish the applicable foreign law.

A scholarly analysis of the judgment records the court's approach that the party relying on foreign law had to submit sufficiently complete and properly authenticated material and establish that the relevant law remained in force. Where the foreign law was not adequately established, UAE law was applied.

Principle

A party relying upon foreign law must properly establish its applicable content.

Exam use

Excellent for:

proof of foreign law;

personal status;

conflict of laws;

burden of establishing foreign law;

Article 28/30-type fallback.

Important current-law qualification: the decision predates the 2025 Civil Transactions Law. Its reasoning should therefore be used consistently with the current Article 30 rather than treating its former article numbering as current.

18. CASE 2 — Fidel v Felecia & Faraz [2015] DIFC CA 002

This is a leading DIFC authority concerning the treatment of non-DIFC UAE law.

The issue was whether non-DIFC UAE law should be treated as "foreign law" requiring proof through expert evidence.

The DIFC Court of Appeal rejected a rigid requirement that non-DIFC UAE law always had to be proved as fact through expert evidence.

It held that the DIFC Courts possess discretion regarding evidentiary rules and adopted an international approach under which submissions on non-DIFC UAE law could be treated as legal submissions rather than automatically requiring formal expert proof.

Principle

Treatment of foreign/non-DIFC law depends upon the applicable court's procedural and evidentiary framework.

Importance

This case demonstrates why one must distinguish:

Onshore UAE courts

from:

DIFC Courts.

The evidentiary treatment of foreign law is not necessarily identical.

19. CASE 3 — Nest Investments Holding Lebanon S.A.L. v Deloitte & Touche [2021] DIFC CA 012 / CA 014

The DIFC Court of Appeal revisited the approach in Fidel.

The Court reaffirmed that the DIFC Courts are not required automatically to treat non-DIFC UAE law as foreign fact requiring formal expert evidence in every case.

The Court explained that the DIFC framework permits an international approach to questions of non-DIFC UAE law, reflecting the international composition and legal expertise of the DIFC judiciary.

Principle

Foreign-law issues before the DIFC Courts may be addressed through legal submissions rather than an inflexible foreign-law fact doctrine.

Exam use

Useful for:

foreign law;

DIFC evidence;

legal submissions;

expert evidence;

comparative UAE judicial systems.

20. CASE 4 — Taleem PJSC v National Bonds Corporation PJSC & Deyaar Development PJSC [2010] DIFC CFI 014

The court considered how non-DIFC Dubai/UAE law should be established before the DIFC Courts.

The judgment contrasted the treatment of genuinely foreign law, such as French law, with non-DIFC UAE law.

The court recognised that, under the then-prevailing approach, foreign law could require evidence, including expert evidence, while the special constitutional and institutional relationship between DIFC law and the wider UAE legal system complicated the classification of non-DIFC UAE law as ordinary foreign law.

Principle

The classification of a legal system as "foreign law" can depend on the judicial framework in which the dispute is being heard.

Importance

This case provides the background to the later approach in Fidel.

21. CASE 5 — Basin Supply Corporation v Rouge LLC [2018] DIFC CFI 057

This case involved a contract containing an express English-law choice-of-law clause.

The litigation nevertheless involved arguments concerning UAE law, and foreign-law experts were engaged.

The case demonstrates a practical point:

Where parties expressly select foreign law, the court must take the choice-of-law provision seriously and the parties may need to address the content of that foreign law through appropriate evidence and submissions.

Principle

An express choice of foreign law can materially determine the substantive legal framework of a commercial dispute.

Exam use

Useful for:

party autonomy;

choice of law;

English law;

commercial contracts;

foreign-law evidence.

22. CASE 6 — Protiviti Member Firm (Middle East) Ltd v Al-Mojil [2016] DIFC CA 003

The DIFC Court of Appeal considered the governing-law framework under Article 8 of the DIFC Law on the Application of Civil and Commercial Laws.

The case illustrates how the DIFC statutory choice-of-law structure can identify a law other than DIFC law for substantive rights and liabilities.

Principle

The court must identify the applicable substantive law through the governing choice-of-law framework rather than assuming that the law of the forum governs every substantive issue.

Exam use

Useful for:

choice of law;

governing law;

DIFC jurisdiction;

foreign substantive law;

forum versus governing law.

23. CASE 7 — Korek Telecom Company LLC v Iraq Telecom Ltd [2024] DIFC CA 016

This modern DIFC Court of Appeal authority involved arguments concerning a foreign act-of-state doctrine and questions about whether principles of another legal system should be recognised within DIFC law.

The case demonstrates the importance of establishing the legal basis for importing a foreign doctrine rather than assuming that a doctrine recognised in another jurisdiction automatically forms part of UAE/DIFC law.

The Court noted the insufficiency of material concerning whether the foreign doctrine should be applied in the DIFC.

Principle

A foreign legal doctrine does not automatically become part of UAE or DIFC law merely because it exists in another jurisdiction.

Exam use

Useful for:

foreign legal doctrines;

comparative law;

act of state;

public policy;

proof of foreign law.

24. CASE 8 — American International Group UK Ltd v Qatar Insurance Co. [2024] DIFC CA 008

This case is useful for the treatment of foreign-law issues and judicial evaluation of foreign legal material.

The judgment discusses the difficulties that arise where foreign law differs from the forum's legal concepts and emphasises that courts may still exercise their own legal judgment when dealing with familiar legal principles and statutory concepts.

Principle

Foreign law is not necessarily an entirely mechanical evidentiary exercise; the court's legal judgment remains important within the applicable procedural framework.

25. What the Cases Collectively Establish

The cases reveal two distinct approaches depending on the judicial system.

Onshore UAE Courts

The important lesson from Dubai Cassation Appeal No. 501/2021 is that a party relying on foreign law must properly establish the applicable foreign law.

If the applicable foreign law cannot be established or its meaning cannot be determined, the current Article 30 directs the court toward UAE law.

DIFC Courts

The Taleem → Fidel → Nest line demonstrates a different procedural approach.

The DIFC Courts have rejected an inflexible rule that every non-DIFC law must always be proved through formal expert evidence.

Therefore:

Do not automatically transfer DIFC evidentiary principles concerning foreign law to an onshore UAE Court.

26. Foreign Law as "Law" Versus "Fact"

This is a major comparative issue.

Traditional common-law approach

Foreign law may be treated as a fact that must be proved, often through expert evidence.

UAE onshore context

The party relying on foreign law must establish its content where required, and failure to establish it can result in application of UAE law.

DIFC approach

After Fidel, the DIFC Courts adopted a more flexible international approach to non-DIFC UAE law.

This distinction is essential in examination answers.

27. Translation of Foreign Law

Where foreign law is written in another language, translation becomes important.

A party may need:

original official text;

certified translation;

authentication;

evidence of current validity;

amendments.

For example:

French Civil Code

should not ordinarily be presented merely as an informal English internet translation where the precise legal effect is disputed.

The court must be able to determine the actual applicable rule.

28. Proving That Foreign Law Is Still in Force

Establishing an old statute is not enough.

The court may need to know:

whether the statute remains effective;

whether it has been amended;

whether implementing regulations exist;

whether later judicial interpretation changes its meaning;

whether the relevant provision applies to the particular facts.

This is particularly important in rapidly changing areas such as:

corporate law;

fintech;

digital assets;

insolvency;

family law;

data protection.

29. Foreign Judicial Decisions

Foreign judgments can be useful in explaining foreign law.

But there is a distinction between:

foreign judgment as evidence of the content/interpretation of foreign law

and:

recognition and enforcement of the foreign judgment itself.

They are separate legal questions.

30. Foreign Law and Public Order

Suppose a UAE conflict-of-laws rule selects foreign law.

The analysis does not necessarily end there.

The court must consider:

Step 1

Is foreign law designated?

Step 2

What does that law provide?

Step 3

Would application of that provision conflict with UAE public order or public morals?

Step 4

If yes, the foreign provision may be excluded under Article 29.

Thus:

Applicable foreign law

does not necessarily mean:

unconditionally applicable foreign law.

31. Mandatory UAE Rules

Party choice of foreign law cannot be understood as permission to disregard every mandatory UAE rule.

For example, a contract might choose:

English law

while being performed in the UAE.

The court may still need to consider mandatory UAE rules relating to:

public order;

licensing;

real estate;

regulated activities;

procedural law;

other mandatory statutory requirements.

32. Foreign Law and Public Morals

Current Article 29 refers to public order or public morals.

The purpose is not to reject every foreign legal rule that differs from UAE law.

Rather, the exception operates where the designated foreign provision itself produces a result incompatible with the fundamental standards protected by UAE law.

33. Multi-Legal-System Countries

Article 27 addresses countries containing multiple legal systems.

This is important for countries such as:

United States;

Canada;

Australia;

United Kingdom in its constituent legal systems;

other federations or jurisdictions with territorial legal systems.

Example

A UAE court determines that:

United States law

applies.

That may still leave another question:

Which U.S. state's law?

Article 27 requires the relevant foreign country's internal rules to identify the applicable legal system.

34. Renvoi and the Internal-Law Rule

Article 28 deliberately limits renvoi.

If French law is selected, the UAE court normally applies:

French internal substantive law

rather than automatically applying:

French conflict-of-laws rules.

The exception is where those private international law rules refer the matter back to UAE law.

Flash formula

Foreign law selected → internal law

Foreign conflict rule → UAE law

Possible renvoi → UAE law

35. Contract Example

Suppose:

UAE company = Party A;

Indian company = Party B;

contract signed in Dubai;

contract expressly selects Indian law;

dispute brought in UAE court.

Analysis

Jurisdiction

→ UAE procedural law determines procedural matters.

Substance

→ Article 19 may lead to Indian law because the parties chose it.

Proof

→ relevant Indian law must be properly established where necessary.

Public order

→ Article 29 review.

Renvoi

→ Article 28 determines treatment of Indian private international law.

This demonstrates that one dispute can involve several legal systems without creating legal confusion.

36. Tort Example

Suppose:

UAE company suffers damage;

accident occurs in Germany;

German law is the relevant law under Article 20.

The UAE court may have jurisdiction for some reason, but:

substantive liability

may be governed by German law.

Meanwhile:

court procedure

is governed by UAE procedural law.

Therefore:

Forum and governing law are not necessarily the same.

37. Property Example

Suppose:

UAE resident owns an apartment in Spain;

dispute concerns title to that apartment.

Article 18 points toward the law of the place where the immovable property is located.

Thus:

Spanish property law

may govern the substantive property question even though:

a UAE court

is dealing with some aspect of the dispute, if it has jurisdiction.

38. Foreign Company Example

Suppose:

German GmbH

operates in UAE.

Questions may involve:

Corporate existence

German law.

UAE activity

UAE law.

UAE licensing

UAE regulatory law.

Contract

Law selected under Article 19.

Court procedure

UAE procedural law if proceeding in an onshore UAE court.

This is a classic example of dépeçage, where different legal systems govern different aspects of the same dispute.

39. Dépeçage

Dépeçage means applying different laws to different legal issues arising from the same dispute.

Example:

Contract validity → English law

UAE licensing → UAE law

Real property rights → law of property location

Court procedure → UAE procedural law

This is entirely possible in international civil litigation.

40. Burden and Responsibility for Foreign Law

A practical litigant relying on foreign law should prepare a complete foreign-law package.

Recommended package:

Statutory text;

Current version;

Amendments;

Official authentication;

Certified Arabic translation where required;

Relevant foreign judgments;

Legal opinion/expert report where appropriate;

Explanation of applicability;

Evidence of continued validity;

Identification of the precise provision relied upon.

41. Why Article 30 Is Important

Article 30 prevents litigation from becoming impossible simply because the foreign legal system cannot be satisfactorily established.

It creates a fallback:

If foreign law cannot be established or its meaning cannot be determined, UAE law applies.

This provides practical certainty.

However, the fallback should not be understood as meaning that a party can simply refuse to establish foreign law and automatically obtain application of UAE law.

The court must consider whether the foreign law genuinely could not be established or interpreted.

42. Foreign Law and Judicial Duty

The interaction between the court and parties is particularly important.

A party should:

identify the foreign law;

invoke the relevant conflict-of-laws rule;

establish its content;

explain its application;

address contrary foreign authorities;

address public-order objections.

The opposing party should be able to:

challenge authenticity;

challenge translation;

dispute interpretation;

produce contrary foreign law;

raise public-order objections;

dispute the connecting factor.

43. Foreign Law and Expert Evidence

Expert evidence can be especially useful where:

foreign legislation is technically complex;

foreign case law is necessary;

legal interpretation is disputed;

the foreign legal system is substantially different;

the court requests specialist assistance.

But the role of experts varies by judicial system.

Onshore UAE

Foreign law must be properly established under the applicable procedural/evidentiary framework.

DIFC

Fidel demonstrates that formal expert proof is not automatically mandatory for every non-DIFC UAE-law question.

44. Current UAE Approach in One Diagram

Stage 1 — Foreign Element

Is there an international element?

Stage 2 — Conflict Rule

Which UAE rule applies?

Stage 3 — Applicable Law

UAE law or foreign law?

Stage 4 — Foreign Law Content

What exactly does the foreign law provide?

Stage 5 — Renvoi

Does Article 28 require consideration of a reference back to UAE law?

Stage 6 — Public Order

Does Article 29 exclude the foreign provision?

Stage 7 — Decision

Apply the surviving applicable law.

45. Seven-Case Comparative Table

CaseCourtMain Principle
Dubai Cassation, Personal Status Appeal 501/2021Dubai Court of CassationParty relying on foreign law must establish its applicable content; inadequate proof can result in UAE law being applied
Fidel v Felecia & Faraz [2015] DIFC CA 002DIFC Court of AppealNon-DIFC UAE law need not automatically be proved as fact by formal expert evidence
Taleem PJSC v National Bonds & Deyaar [2010] DIFC CFI 014DIFC Court of First InstanceConsidered treatment and proof of non-DIFC law
Nest Investments v Deloitte [2021] DIFC CA 012/014DIFC Court of AppealReaffirmed international approach to non-DIFC UAE law
Basin Supply v Rouge [2018] DIFC CFI 057DIFC Court of First InstanceExpress foreign-law choice is significant; foreign-law evidence may be required
Protiviti v Al-Mojil [2016] DIFC CA 003DIFC Court of AppealGoverning-law framework can direct substantive issues to a non-DIFC legal system
Korek Telecom v Iraq Telecom [2024] DIFC CA 016DIFC Court of AppealForeign legal doctrines do not automatically become part of DIFC law
AIG UK v Qatar Insurance [2024] DIFC CA 008DIFC Court of AppealJudicial evaluation of foreign-law concepts remains important

46. Most Important Distinctions

1. Foreign Law vs Foreign Judgment

Foreign law:

Legal rules governing the dispute.

Foreign judgment:

Judicial decision made by a foreign court.

They require different legal analysis.

2. Governing Law vs Forum

Forum = court hearing the dispute.

Governing law = law applied to substantive rights.

They may be different.

3. Substantive Law vs Procedural Law

Foreign law may govern substance.

UAE law may govern procedure.

4. Recognition vs Application

Recognising a foreign legal rule is different from deciding that it governs the particular dispute.

5. Foreign Law vs Foreign Legal Doctrine

A foreign doctrine does not automatically become part of UAE law.

Korek Telecom illustrates this distinction.

47. Common Mistakes

Mistake 1

"Case is in UAE, therefore UAE law automatically applies."

Wrong.

The conflict-of-laws rules determine applicable substantive law.

Mistake 2

"Contract says English law, so all UAE laws are irrelevant."

Wrong.

Mandatory UAE law and public-order rules can remain relevant.

Mistake 3

"Foreign law was mentioned in pleadings, so the court must apply it."

Wrong.

The applicable connecting rule and proper establishment of foreign law remain important.

Mistake 4

"DIFC treats foreign law in a certain way, so Dubai Courts must do the same."

Wrong.

DIFC has its own statutory and procedural framework.

Mistake 5

"Failure to submit foreign law automatically means the claim fails."

Wrong.

The current Article 30 provides a fallback to UAE law where the applicable foreign law cannot be established or its meaning determined.

48. Examination-Ready Answer

Foreign law application in UAE courts is governed by the UAE's private international law and conflict-of-laws rules. The current Federal Decree by Law No. 25 of 2025 on the Civil Transactions Law, effective from 1 June 2026, establishes connecting rules for contractual obligations, non-contractual obligations, property, foreign legal persons and other matters involving a foreign element.

Under Article 19, parties may generally choose the law governing their contractual obligations. In the absence of a choice, the statute provides connecting factors including common domicile and the place of performance of the principal contractual obligation. Immovable property is governed by the law of its location under Article 18, while non-contractual obligations are generally governed by the law of the country where the event giving rise to the obligation occurred under Article 20.

Once a foreign law is designated, Article 28 provides that its internal provisions are applied rather than its private international law provisions, subject to the statutory treatment of renvoi. Article 29 excludes foreign provisions contrary to UAE public order or public morals, while Article 30 provides that UAE law applies where the applicable foreign law cannot be established or its meaning cannot be determined.

The case law demonstrates the practical operation of these principles. Dubai Court of Cassation Personal Status Appeal No. 501/2021 is particularly important for the establishment of foreign law before an onshore UAE court. The Fidel, Taleem and Nest Investments decisions demonstrate that the DIFC Courts employ a different, more flexible approach to questions of non-DIFC UAE law. Basin Supply illustrates the significance of an express foreign-law clause, while Protiviti demonstrates the operation of the DIFC governing-law framework. Korek Telecom further shows that a foreign legal doctrine does not automatically become part of DIFC law.

Accordingly, the UAE approach can be summarised as:

Identify the foreign element → apply the UAE conflict-of-laws rule → identify the governing law → establish its content → examine renvoi and mandatory rules → apply the foreign law unless public order or another statutory exception prevents it.

49. Ultra-Rapid Revision Notes

Article 11

Foreign legal person → management-centre law; UAE activity → UAE law for that activity

Article 18

Immovable property → law of location

Article 19

Contract → chosen law; otherwise statutory connecting factors

Article 20

Non-contractual obligation → law of place of event

Article 21

Procedure → law of forum/proceedings

Article 22

Special law/treaty → may override preceding conflict rules

Article 23

Unregulated conflict → private international law principles

Article 27

Multi-system country → internal rules determine applicable system

Article 28

Foreign law → internal substantive law; controlled renvoi

Article 29

Foreign law cannot apply if contrary to UAE public order/public morals

Article 30

Foreign law cannot be established/interpreted → UAE law applies

50. MASTER MEMORY FORMULA

FOREIGN LAW APPLICATION IN UAE

Foreign Element

Attribution Rule

Applicable Law

Choice of Law / Connecting Factor

Proof of Foreign Law

Renvoi

Public Order

UAE Mandatory Rules

Final Application

One-line rule:

A UAE court may apply foreign substantive law when the UAE conflict-of-laws rules designate it, but the foreign law must be properly established and remains subject to UAE public-order and mandatory-law limitations.

Case-law memory:

501/2021 → prove foreign law

Taleem → foreign-law proof issue

Fidel → international approach

Nest → reaffirmed international approach

Basin Supply → chosen foreign law

Protiviti → governing-law framework

Korek → foreign doctrine not automatically UAE law

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