Civil Law And UAE Foreign Law Application In UAE Courts

1. Introduction

Foreign law application means a UAE court applies the substantive law of another country to a dispute because UAE conflict-of-laws rules, a treaty, a special statute, or a valid contractual choice of law makes that foreign law applicable.

For example:

UAE court + contract expressly governed by Swiss law → UAE court may apply Swiss substantive law.

Or:

UAE court + tort occurring in another country → the relevant foreign law may apply under the applicable conflict-of-laws rule.

The important distinction is:

UAE court = forum law for procedure; foreign law may govern substantive rights and obligations.

Thus, a UAE judge can apply:

English law;

French law;

Swiss law;

Indian law;

Singapore law;

another foreign legal system,

where the UAE conflict-of-laws framework identifies that law as applicable.

2. Current UAE Legal Framework

The current UAE Civil Transactions Law is Federal Decree by Law No. 25 of 2025.

It:

repealed Federal Law No. 5 of 1985;

entered into force on 1 June 2026;

contains updated conflict-of-laws provisions.

The new law's Articles 11–30 are particularly important for private international law.

The basic structure is:

Personal status and capacity

↓

Family relationships

↓

Property

↓

Contracts

↓

Non-contractual obligations

↓

Procedure

↓

Special laws/treaties

↓

Renvoi

↓

Public policy

↓

Proof/meaning of foreign law

3. Article 11 — Personal Capacity

Article 11 provides that the civil status and legal capacity of natural persons are generally governed by the law of their nationality.

It also contains a protection for transactions concluded in the UAE where a foreigner's incapacity results from a reason that was not readily apparent to the other party.

For foreign legal persons, the law of the country where the principal management centre is established generally applies, while UAE law applies where the foreign legal person conducts activity in the UAE.

Example

A foreign company's legal capacity may initially be examined through the law of its principal management centre, but UAE mandatory regulatory requirements can still become relevant to activities conducted in the UAE.

4. Article 12 — Marriage

The new law generally connects substantive validity of marriage to the law of the country where the marriage was concluded.

Formal validity may be recognised where the marriage complies with the formalities of the place of celebration or applicable personal laws.

This demonstrates that UAE private international law does not automatically apply UAE substantive law to every international relationship.

5. Article 13 — Effects of Marriage

Article 13 connects personal and property effects arising from marriage, as well as divorce and judicial separation, to the law identified by the statutory conflict rule.

However, special rules apply where one spouse is a UAE national.

Therefore:

Nationality can override the ordinary connecting factor in certain family-law situations.

6. Article 14 — UAE Nationality Exception

Where one spouse is a UAE national in the circumstances specified by the provision, UAE law applies, subject to the statutory exception concerning capacity to marry.

This is an example of a mandatory connecting rule.

The parties cannot simply choose another law whenever the statute itself specifies the applicable law.

7. Article 18 — Property

Property rights are traditionally governed by the lex situs principle.

Article 18 provides that:

immovable property is governed by the law of the place where the property is located;

movable property is generally governed by the law of the country where it is situated at the relevant time;

the law of the location determines whether property is movable or immovable.

Example

A dispute concerning ownership of land situated in Dubai will ordinarily require application of the UAE law governing that property.

A foreign contractual choice of law cannot simply transform the UAE's property-registration and proprietary rules into foreign law.

8. Article 19 — Contractual Obligations

This is one of the most important provisions.

Article 19 provides that contractual obligations, concerning both form and substance, are governed by the law expressly chosen by the parties.

If the parties have not chosen a law:

the law of their common domicile generally applies;

if their domiciles differ, the law of the country where the main contractual obligation is to be performed generally applies;

the circumstances may indicate that another law should apply.

Contracts concerning immovable property are governed by the law of the property's location.

Formula

Express choice → Common domicile → Main performance → Circumstances

subject to:

Immovable property → Lex situs

9. Party Autonomy

Party autonomy is therefore a central principle.

Example:

UAE company + French company
Contract states: “This agreement shall be governed by French law.”

The UAE court does not automatically substitute UAE contract law merely because the case is being heard in the UAE.

The court must examine:

validity of the choice;

scope of the clause;

mandatory UAE rules;

public policy;

special legislation;

treaty provisions.

10. Choice of Law and Choice of Court Are Different

This is a common examination mistake.

Choice of law

Which substantive law governs?

Choice of court

Which court has jurisdiction?

A contract may state:

Governing law: English law
Courts: UAE courts

That is legally possible.

Thus:

English governing law does not necessarily mean English courts.

Similarly:

UAE courts do not necessarily mean UAE substantive law.

11. Case 1 — Basin Supply Corporation v Rouge LLC & Claude Barret [2018] DIFC CFI 057

This DIFC case provides a clear illustration of party autonomy.

The contract expressly selected English law and provided jurisdiction to the English courts and DIFC Courts.

The defendants argued that UAE law should govern validity of the agreement.

The Court rejected that approach and gave substantial effect to the contractual governing-law provision.

Principle

A clear contractual choice of law ordinarily receives effect.

Importance

This case demonstrates the distinction between:

where a contract was made;

where performance occurs;

where assets are located;

and the law the parties chose.

A party cannot simply disregard an express governing-law clause because another legal system would produce a different result.

Caveat

This is a DIFC authority, not a binding precedent for onshore UAE courts.

12. Article 20 — Non-Contractual Obligations

Article 20 provides that non-contractual obligations are generally governed by the law of the country where the event giving rise to the obligation occurred.

It also creates an important limitation for conduct occurring abroad that is lawful in the UAE even though unlawful in the foreign country.

Example

A tort occurs in Country X.

If the relevant statutory connecting rule points to Country X, Country X law may govern the substantive obligation.

But the UAE court must still consider:

Article 20;

applicable treaties;

mandatory UAE provisions;

public policy.

13. Article 21 — Procedure

Article 21 follows the traditional lex fori principle.

Judicial jurisdiction and procedural matters are governed by the law of the country in which:

the action is filed; or

the proceedings are conducted.

Therefore:

Foreign substantive law can be applied by a UAE court, but UAE procedural law generally governs the litigation before that UAE court.

Example

Contract governed by Swiss law + lawsuit in UAE:

Substantive rights → potentially Swiss law

Court procedure → UAE procedural law

14. Substance vs Procedure

This distinction is critical.

The classification can sometimes be difficult.

A rule that appears procedural may affect substantive rights, and vice versa.

The court therefore examines the nature and purpose of the rule.

15. Article 22 — Special Law and International Convention

Article 22 provides that the preceding conflict rules do not apply where a contrary provision exists in:

a special law; or

an international treaty in force in the UAE.

This is extremely important.

Hierarchy

Applicable treaty/special law

↓

Specific conflict rule

↓

General private international law

The lawyer should therefore never begin with the Civil Transactions Law alone.

The first question should be:

Is there a treaty or special statute governing this subject?

16. Article 23 — Residual Private International Law

Article 23 provides that principles of private international law serve as the reference for conflict-of-laws questions not specifically resolved by the preceding provisions.

This gives the system flexibility.

Not every international dispute can be predicted through a single statutory connecting factor.

17. Article 24 — Stateless Persons

The new law provides UAE law as the applicable law for stateless persons in the circumstances covered by the provision.

This avoids a conflict-of-laws problem where nationality cannot supply a meaningful connecting factor.

18. Article 25 — Multiple Nationalities

Article 25 deals with persons possessing multiple nationalities.

The law of the nationality by which the person entered the UAE is identified as the applicable nationality for the statutory purpose.

Article 26 separately provides that where a person simultaneously possesses UAE nationality and another nationality, UAE law applies.

19. Article 27 — Multiple Legal Systems Within a Country

Some countries contain multiple legal systems.

For example, a foreign state may have:

federal law;

state law;

provincial law;

territorial law.

Article 27 provides that the internal law of that country determines which of its legal systems should apply.

If that does not resolve the issue, the provision refers to the prevailing legal system or domicile as appropriate.

Example

If Country X has separate state laws, the UAE court does not automatically choose one.

It first asks:

Which internal conflict rule of Country X identifies the applicable state law?

20. Article 28 — Renvoi

Article 28 addresses renvoi.

If UAE conflict-of-laws rules identify a foreign country's law, the UAE court applies that country's internal substantive provisions, excluding its own private international law rules.

However, where the foreign conflict rules refer back to UAE law, the UAE law may apply in the circumstances contemplated by Article 28(2).

Simple example

UAE conflict rule:

Apply Country X law.

Country X's private international law:

This issue should be governed by UAE law.

The question becomes:

Should the UAE court follow that reference back?

Article 28 provides the UAE's statutory answer.

21. Article 29 — UAE Public Policy

Article 29 is a fundamental limitation.

Foreign law designated under the conflict rules may not be applied if its provisions are contrary to UAE public order or public morals.

Thus:

Choice of foreign law is not absolute.

The basic structure is:

Foreign law selected

↓

Determine content

↓

Check UAE public order/public morals

↓

If compatible → apply

↓

If incompatible → foreign provision excluded

22. Public Policy Is Not an Ordinary Merits Review

A UAE court should not refuse foreign law simply because:

“UAE law would produce a different result.”

Difference is not necessarily incompatibility.

The question is more fundamental:

Would applying the particular foreign rule conflict with UAE public order or public morals?

Therefore, public policy should be distinguished from:

ordinary legal disagreement;

different damages rules;

different contractual doctrines;

different evidentiary standards.

23. Case 2 — Fidel v Felecia & Faraz [2015] DIFC CA 002

This is one of the most important cases concerning foreign law in the UAE's broader judicial environment.

The issue was whether non-DIFC UAE law had to be treated as “foreign law” and proved as a fact through expert evidence.

The DIFC Court of Appeal rejected a rigid English-style rule.

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

Principle

Foreign-law application is not necessarily governed by a rigid “foreign law = fact = expert evidence” formula.

Importance

The case is particularly valuable because it shows that the method of establishing foreign law depends on the forum's own procedural and evidentiary framework.

24. Case 3 — TVM Capital Healthcare Partners Ltd v Ali Akbar Hashemi [2014] DIFC CA 006

The case involved proceedings in the DIFC arising from a confidentiality dispute, with prior proceedings before Abu Dhabi courts.

The DIFC Court of Appeal considered the effect of UAE federal criminal-procedure provisions and the extent to which findings in the Abu Dhabi proceedings bound the DIFC Court.

The Court examined the relevant UAE federal law directly rather than treating it as something that necessarily had to be proved through foreign-law expert evidence.

Principle

A UAE court within a specialised jurisdiction may directly analyse applicable UAE federal legislation where its governing procedural framework permits it.

Importance

It also illustrates the distinction between:

what a foreign/other court actually decided;

what issues were necessary to its decision;

and what legal consequences follow in the later proceeding.

25. Case 4 — Hana Al Herz v DIFC Authority [2013] DIFC CA 004

The DIFC Court of Appeal considered UAE federal pension legislation while resolving issues concerning the appellant's employment rights.

The case is specifically identified in Fidel as an earlier example where the DIFC Court considered non-DIFC UAE law without requiring expert evidence.

Principle

The forum's own court may determine the content and application of another UAE legal regime where its procedural law permits that approach.

Relevance

This is important for understanding the distinction between:

foreign national law

and

another UAE legal regime applied within a specialised jurisdiction.

26. Case 5 — Marwan Lutfi v DIFC Authority [2013] DIFC CA 003

Lutfi concerned UAE federal legislation concerning pensions and social-security rights.

The DIFC Court of Appeal considered the relevant federal legislation directly.

The decision is cited in Fidel as an example of the DIFC Court applying non-DIFC UAE law without requiring formal expert evidence.

Principle

The content of applicable law may be determined by the court through legal materials and judicial analysis rather than automatically through expert testimony.

Exam importance

It demonstrates that proof of foreign law and application of foreign law are separate questions.

27. Case 6 — Injazat Capital Ltd v Denton Wilde Sapte & Co [2010] DIFC CFI 019

The dispute involved an arbitration clause and the relationship between DIFC legislation, UAE federal legislation and the New York Convention.

The Court considered the relevant UAE Civil Procedure provisions directly. Fidel later cited Injazat as an example of the DIFC Court determining UAE federal law without formal expert evidence.

Principle

The forum court determines the legal significance of applicable legislation according to its own procedural framework.

Importance

It is useful in cross-border arbitration and jurisdiction disputes.

28. Case 7 — International Electromechanical Services Co LLC v Al Fattan Engineering LLC [2012] DIFC CFI 004

This construction dispute involved interpretation of contractual and UAE procedural provisions.

The case was also identified in Fidel as an authority where the DIFC Court considered UAE federal procedural law without requiring expert evidence.

Principle

The fact that a legal provision originates outside the immediate legal system of the forum does not necessarily mean that its content must be established through expert evidence.

Relevance

This is particularly useful where a specialised UAE jurisdiction must interpret federal legislation.

29. Case 8 — Sky News Arabia FZ-LLC v Kassab Media FZ (LLC) [2018] DIFC CA 010

This case is important for choice of governing law.

The parties had referred in their agreement to:

“the laws of the United Arab Emirates, as applicable in the Emirate of Abu Dhabi.”

The dispute required the DIFC Court to determine the meaning and effect of that choice in the context of DIFC jurisdiction.

The Court considered the interaction between:

UAE federal law;

Abu Dhabi law;

DIFC law;

the parties' choice;

DIFC jurisdiction.

Principle

A governing-law clause must be interpreted carefully in the context of the legal system selected and the jurisdiction in which the dispute is brought.

Exam point

A clause saying simply:

“UAE law”

may require further analysis where the UAE contains multiple judicial and legal regimes.

30. Case 9 — Sanjeev Sawhney & Alka Sawhney v Credit Suisse AG [2021] DIFC CFI 062

This case provides a particularly useful example of an express foreign-law clause.

The proceedings involved agreements containing Swiss-law governing provisions.

The defendant argued that claims concerning the parties' legal relationship had to be determined under Swiss law because of the contractual choice-of-law provisions.

Principle

Where parties have expressly chosen foreign law, the court must analyse the dispute through that chosen law unless a recognised exception applies.

Importance

This demonstrates the practical significance of drafting.

A sophisticated international contract can place substantial substantive questions under foreign law even when litigation takes place in the UAE.

31. Case 10 — Basin Supply Corporation v Rouge LLC [2018] DIFC CFI 057

This case is worth remembering separately because the Court dealt directly with a disagreement over whether English law or UAE law governed the contract.

The contract expressly selected English law.

The defendants argued that UAE law should apply because of where the contract was made and other connecting factors.

The Court gave effect to the express governing-law provision.

Principle

An express choice of governing law is a powerful connecting factor.

Exam sentence

“The place of contracting does not automatically override an express contractual choice of law.”

32. Foreign Law Must Be Distinguished From Foreign Judgment

These are separate concepts.

Foreign law

What legal rule applies to the dispute?

Foreign judgment

Has another country's court already decided the dispute?

Example:

UAE court applies Swiss law.

This is foreign-law application.

But:

UAE court recognises an English judgment.

This is foreign-judgment recognition and enforcement.

The two areas can overlap, but they are legally distinct.

33. Foreign Law and Evidence

A difficult practical question is:

How does the UAE court discover the content of foreign law?

Possible materials include:

statutory texts;

official legislation;

foreign judgments;

treaties;

authoritative legal commentaries;

expert opinions;

submissions by counsel;

academic materials.

The exact method depends on the applicable procedural framework.

The Fidel decision is particularly important because it rejected the proposition that the DIFC Courts must always treat non-DIFC UAE law as fact requiring expert evidence.

34. Foreign Law and Expert Evidence

Expert evidence may nevertheless be useful.

For example:

UAE court → dispute governed by complex Indian succession law.

The parties may provide:

Indian legislation;

Indian Supreme Court decisions;

qualified Indian-law expert opinion;

authoritative commentary.

But the ultimate legal determination remains with the court.

Therefore:

Expert explains foreign law; court decides the legal issue.

35. Foreign Law and Legal Submissions

The Fidel approach is particularly significant because the DIFC Court preferred an international approach in which counsel could make legal submissions on non-DIFC UAE law, supported where appropriate by expert material.

This avoids the simplistic model:

Foreign law = ordinary fact.

Instead:

Foreign law is a legal question requiring reliable legal materials and appropriate judicial assessment.

36. Foreign Law and Mandatory UAE Rules

Even when a foreign governing law is validly selected, UAE mandatory rules may still apply where the legal system treats them as overriding.

Examples can include rules concerning:

public order;

immovable property;

regulatory licensing;

certain corporate matters;

personal status;

mandatory consumer protection;

insolvency;

financial regulation;

employment;

sanctions or prohibited transactions.

Therefore:

Choice of foreign law does not create immunity from UAE mandatory legislation.

37. Foreign Law and Immovable Property

This is one of the strongest limitations on party autonomy.

Suppose:

UAE land-sale contract says “English law governs.”

The court may still have to apply UAE law concerning:

title;

registration;

transfer of ownership;

real rights;

land registration;

mandatory property requirements.

This follows from the lex situs rule in Article 18 and the specific contractual rule for immovable property in Article 19(2).

38. Foreign Law and Companies

Foreign corporate law may become relevant to questions such as:

corporate capacity;

authority of directors;

internal governance;

shareholder rights;

validity of corporate acts.

But where the company conducts regulated activities in the UAE, UAE regulatory law may apply.

Article 11 specifically addresses foreign legal persons and provides that where such persons conduct an activity in the UAE, UAE law applies in the circumstances specified there.

39. Foreign Law and Torts

Under Article 20:

Place of the event giving rise to the non-contractual obligation is the principal statutory connecting factor.

Therefore, in a cross-border tort claim the court should identify:

where the relevant event occurred;

whether the event constitutes the legally relevant cause;

whether a special law/treaty applies;

whether the foreign law conflicts with UAE public order;

whether another statutory exception applies.

40. Foreign Law and Digital Transactions

Modern disputes can involve:

cloud services;

cryptocurrency;

digital platforms;

cross-border payments;

software licences;

online contracts;

AI services;

digital assets.

A digital transaction may have multiple connecting factors:

Seller in Country A
Buyer in UAE
Server in Country B
Payment processor in Country C
Contract governed by Country D law.

The court must not simply assume that the server location determines the governing law.

The appropriate analysis begins with:

Contractual choice

↓

Statutory connecting factors

↓

Special legislation/treaty

↓

Mandatory rules

↓

Public policy

41. Renvoi in Digital and Cross-Border Cases

Renvoi can become particularly complicated where a foreign legal system has its own conflict rules.

Example:

UAE conflict rules → Country A law.

But:

Country A conflict rules → Country B law.

Article 28 provides the UAE's approach to this problem and generally directs attention to the foreign law's internal provisions rather than automatically importing its private international law rules, subject to the statutory reference-back rule.

42. Foreign Law and Public Policy

The public-policy analysis can be expressed as:

Foreign law identified

↓

Content established

↓

Compare with fundamental UAE public-order principles

↓

Compatible?

→ Yes → Apply foreign law.

→ No → Exclude the conflicting provision to the extent required.

This is a safeguard against applying foreign rules that are fundamentally incompatible with the UAE legal order.

43. Foreign Law and Public Morals

Article 29 expressly refers not only to public order but also to public morals.

Therefore, the court's analysis can extend beyond technical conflict-of-laws questions.

However, the public-policy exception should not become a general device for refusing foreign law merely because:

“The foreign law is different.”

Difference is normal in private international law.

The exception concerns fundamental incompatibility.

44. Foreign Law and Procedural Rules

Suppose:

Contract governed by Swiss law.

The UAE court may apply Swiss law to:

contractual interpretation;

breach;

contractual rights;

substantive damages.

But the proceedings themselves may still follow UAE procedural rules under Article 21.

Thus:

Swiss substantive law + UAE procedural law

can coexist in the same litigation.

45. Foreign Law and Evidence Rules

This creates an additional distinction:

Substantive law

Determines rights and obligations.

Procedural law

Determines how those rights are litigated.

Evidence

Determines how facts and legal materials are presented and evaluated under the applicable procedural framework.

The Fidel decision illustrates how the forum's own procedural system can determine the method of receiving foreign-law material.

46. Foreign Law and Contract Interpretation

Where foreign law governs a contract, the court may need to understand the foreign system's approach to:

literal interpretation;

common intention;

implied terms;

good faith;

contractual construction;

remedies.

A UAE court should not automatically substitute UAE interpretive methodology for the substantive rules of the chosen foreign law.

The governing law must be applied as a coherent legal system.

47. Foreign Law and Arbitration

International arbitration frequently involves:

Governing law + seat law + procedural rules

For example:

governing law = UAE law;

seat = Singapore;

institutional rules = SIAC;

enforcement = UAE.

Or:

governing law = Swiss law;

seat = DIFC;

procedural law = DIFC arbitration law.

These are separate legal questions.

48. Foreign Law and the Seat of Arbitration

The seat normally determines the legal framework governing the arbitration's procedural supervision.

It does not automatically determine the substantive governing law.

Therefore:

Seat ≠ Governing Law

This principle is particularly important in UAE-related international arbitration.

49. Foreign Law and International Conventions

Article 22 is important because a treaty can displace the general conflict rules.

Relevant areas include:

international sales;

arbitration;

judicial cooperation;

recognition of judgments;

family matters;

transport;

intellectual property;

investment.

Therefore:

Always check treaty law before relying solely on the Civil Transactions Law.

50. Burden of Establishing Foreign Law

The practical responsibility for presenting foreign law usually rests heavily on the party relying upon it.

That party should provide:

exact statutory provisions;

current version;

authoritative translations;

relevant foreign decisions;

expert opinion where useful or required;

explanation of amendments;

explanation of how the foreign law operates.

A party should not simply say:

“Under Indian law, I win.”

It should identify:

Which Indian rule, which version, which interpretation and how it applies to the facts.

51. Problem of Outdated Foreign Law

Foreign-law analysis is particularly vulnerable to outdated materials.

A party may produce:

2018 foreign legislation.

But the dispute may concern:

2026 law.

The court therefore needs to determine:

applicable date;

amendments;

transitional provisions;

retrospective effect;

relevant foreign judgments;

current interpretation.

This is especially important in fast-changing areas such as:

fintech;

digital assets;

technology;

data protection;

corporate law.

52. Foreign Law Application Flowchart

Step 1

Identify the legal issue

↓

Step 2

Contractual, property, family, tort or other issue?

↓

Step 3

Check special law/treaty

↓

Step 4

Apply UAE conflict-of-laws rule

↓

Step 5

Identify applicable foreign law

↓

Step 6

Determine internal law of that country

↓

Step 7

Consider renvoi under Article 28

↓

Step 8

Establish content and meaning of foreign law

↓

Step 9

Check UAE mandatory rules

↓

Step 10

Check public order/public morals

↓

Step 11

Apply foreign substantive law

↓

Step 12

Apply UAE procedural law

53. Case-Law Revision Table

54. Important Qualification About These Cases

Most of the case authorities above are DIFC Court decisions.

They are valuable for understanding:

choice of law;

foreign-law methodology;

UAE federal law;

conflict-of-laws reasoning;

public policy;

proof of foreign law.

But they should not be described as automatically binding precedent on onshore UAE Courts.

For an onshore UAE dispute, the starting point should be:

current UAE legislation;

applicable emirate-specific legislation;

applicable treaty;

relevant onshore UAE judicial authority.

The DIFC decisions are particularly useful as comparative and persuasive authorities.

55. Current 2026 Position — Exam Table

Article 30 is particularly important: where it is impossible to prove the applicable foreign law or determine its meaning, the new law provides for application of UAE law.

56. Article 30 — Failure to Establish Foreign Law

This is an important examination provision.

Suppose:

UAE conflict rule → Country X law.

But:

the parties cannot establish the content of Country X law;

the available material is contradictory;

the meaning of the relevant foreign provision cannot be determined.

Article 30 provides that UAE law applies in that situation.

Formula

Foreign law selected

↓

Cannot prove/understand it

↓

UAE law applies

This prevents litigation from becoming impossible merely because foreign law cannot adequately be established.

57. Foreign Law Application vs Automatic Application of UAE Law

The UAE court should not begin with:

“This is a UAE court, therefore UAE substantive law applies.”

The correct question is:

“Which legal system does UAE conflict-of-laws law designate?”

This is the essence of private international law.

58. Practical Example — International Contract

Facts

A UAE company enters into a contract with a French company.

The contract says:

“This agreement is governed by French law.”

Dispute is filed in Dubai.

Analysis

1. Forum

Dubai/UAE court.

2. Governing law

French law under Article 19, assuming valid choice.

3. Procedure

UAE procedural law.

4. Mandatory UAE rules

Check whether any apply.

5. Public policy

Check Article 29.

6. Foreign law proof

Provide reliable French legislation and legal authorities.

7. Decision

Apply French substantive law within the limits of UAE mandatory rules/public policy.

59. Practical Example — UAE Property

Facts

Two foreign parties sign a contract governed by English law concerning Dubai real estate.

Analysis

The contractual choice is relevant.

But property rights and immovable-property issues are connected to the law of the property's location.

Therefore:

Dubai property law remains central.

Article 18 and Article 19(2) make the lex situs principle particularly important.

60. Practical Example — Cross-Border Tort

Facts

A UAE company suffers loss from an event occurring in Country X.

Analysis

Identify the event giving rise to the obligation.

Apply Article 20.

Determine Country X law if that is the statutory connecting factor.

Check any special law/treaty.

Determine foreign law's content.

Apply Article 29 public-policy limitation.

Conduct proceedings under UAE procedural law.

61. Practical Example — Foreign Company

A foreign corporation operates in the UAE.

Questions may include:

What is its legal capacity?

Who can bind it?

Which law governs its internal organisation?

Which UAE regulatory requirements apply to its UAE operations?

Article 11 is important because it addresses foreign legal persons and separately recognises the relevance of UAE law to activities conducted in the UAE.

62. Key Doctrines to Remember

Lex situs

Law of the place where property is located.

Lex loci delicti / event-based rule

Law connected to the event giving rise to the non-contractual obligation.

Lex fori

Law of the forum, especially procedural law.

Party autonomy

Parties' valid choice of governing law.

Renvoi

Reference by the designated foreign legal system back to another legal system.

Public policy

Protection of fundamental UAE legal principles.

Mandatory rules

Rules that cannot simply be displaced by private agreement.

63. Seven-Step Exam Formula

Remember:

C-L-A-R-P-E-F

C — Characterise the issue

Is it contract, tort, property, family, status, etc.?

L — Locate the connecting factor

Nationality, domicile, property location, place of event, performance, etc.

A — Apply the UAE conflict rule

Use Articles 11–30 and applicable special rules.

R — Renvoi

Check Article 28.

P — Public policy

Check Article 29.

E — Establish foreign law

Determine its current content and meaning.

F — Forum procedure

Apply UAE procedural law under Article 21.

64. Final Conclusion

The UAE approach to foreign-law application is based on controlled recognition of foreign substantive law rather than automatic application of UAE law.

The current Civil Transactions Law, effective 1 June 2026, provides a structured conflict-of-laws framework:

Personal status → Property → Contract → Non-contractual obligation → Procedure → Treaty/special law → Renvoi → Public policy → Proof of foreign law.

The most important current provisions are:

Article 11 — personal capacity and foreign legal persons;

Article 18 — property and lex situs;

Article 19 — contractual choice of law;

Article 20 — non-contractual obligations;

Article 21 — procedural law;

Article 22 — special laws and treaties;

Article 23 — residual private international law;

Articles 24–27 — nationality and multiple legal systems;

Article 28 — renvoi;

Article 29 — UAE public order and public morals;

Article 30 — failure to establish applicable foreign law.

The cases provide the practical dimension. Basin Supply and Sanjeev Sawhney illustrate party autonomy; Fidel explains the treatment and proof of foreign/non-DIFC UAE law; TVM Capital, Lutfi, Herz, Injazat and Al Fattan demonstrate judicial treatment of UAE federal law within DIFC proceedings; and Sky News Arabia illustrates the difficulty of interpreting a UAE governing-law clause across the UAE's multiple legal regimes.

Final exam sentence

A UAE court may apply foreign substantive law where UAE conflict-of-laws rules, party autonomy, a treaty or special legislation designate that law; however, the application remains subject to applicable mandatory UAE rules and the UAE public-policy exception, while UAE procedural law generally governs the proceedings before the UAE court.