1. Introduction

The sources of civil law in the UAE are the legal foundations from which courts derive rules governing private relationships, including:

• contracts;
• property;
• obligations;
• compensation;
• liability;
• ownership;
• unjust enrichment;
• guarantees;
• sale;
• lease;
• construction;
• insurance;
• civil rights.

The UAE follows a codified civil-law system, rather than a common-law system based primarily on binding judicial precedent. The UAE Government describes the system as a mixed legal system in which Islamic Sharia is an important source and most codified legislation also reflects civil-law traditions, including Egyptian and French influences.

A particularly important development for current study is the Federal Decree by Law No. 25 of 2025 Promulgating the Civil Transactions Law, which entered into force on 1 June 2026 and replaced the former Federal Law No. 5 of 1985 Civil Transactions Law.

2. Meaning of “Sources of Civil Law”

A source of law means the legal foundation from which a court obtains a rule for deciding a dispute.

For UAE civil law, the basic statutory hierarchy under the current Civil Transactions Law can be simplified as:

Legislation → Islamic Sharia → Custom (Urf) → Principles of Natural Law and Justice

This hierarchy is expressly set out in Article 1 of the new Civil Transactions Law.

Article 2 additionally provides that the principles of Islamic jurisprudence (Usul Al-Fiqh) are used for understanding, interpreting and construing legislative texts.

3. Main Sources at a Glance

4. First Source — Constitution

The UAE Constitution is the fundamental legal framework of the Federation.

It establishes the constitutional structure under which federal legislation is enacted.

The Constitution also provides the constitutional basis for the relationship between Islamic Sharia and legislation. The UAE Government explains that Islam is the official religion and Islamic Sharia is a main source of legislation.

Why is the Constitution important to civil law?

Because civil legislation must operate within the constitutional framework.

For example, legislation governing:

• property;
• contracts;
• companies;
• civil procedure;
• evidence;

must be consistent with the constitutional allocation of legislative powers and constitutional requirements.

5. Second Source — Federal Legislation

For ordinary civil disputes, written legislation is the most important practical source.

The UAE has extensive codified legislation.

The official UAE legislative system identifies federal laws as the principal implementation mechanism for constitutional matters and explains that decrees by law can have the force of law when issued according to the constitutional procedure.

Important civil-law legislation includes:

1. Civil Transactions Law

Currently:

Federal Decree by Law No. 25 of 2025

effective from 1 June 2026.

2. Civil Procedure Law

Governs civil litigation and procedure.

3. Evidence Law

Governs proof in civil and commercial proceedings.

4. Commercial Transactions Law

Deals with commercial relationships.

5. Commercial Companies Law

Regulates companies and corporate relationships.

6. Electronic Transactions and Trust Services legislation

Important for electronic contracts and digital transactions.

7. Special legislation

Special laws may govern:

• labour;
• consumer protection;
• insurance;
• bankruptcy;
• real estate;
• arbitration;
• intellectual property;
• data protection.

6. The Civil Transactions Law as the Core Civil Code

The Civil Transactions Law is the central general legislation for UAE civil law.

The new 2025 Law contains rules concerning:

• application of law;
• persons;
• obligations;
• contracts;
• named contracts;
• property;
• real rights;
• security rights;
• civil liability;
• compensation.

The UAE Government has described the new law as a comprehensive framework intended to modernise and integrate the country's civil-law rules.

7. Article 1 — The Basic Hierarchy

Article 1 of the current Civil Transactions Law is the most important provision for this topic.

It provides, in substance:

First

Apply legislative provisions to matters expressly or implicitly addressed by legislation.

Second

If legislation contains no applicable rule:

The court applies Islamic Sharia, selecting the appropriate solution in light of the circumstances and public interest.

Third

If no applicable rule is found in Sharia:

The court applies custom (Urf), provided the custom does not conflict with public order or public morals.

Fourth

If no applicable custom exists:

The court applies principles of natural law and rules of justice.

Exam formula

Legislation → Sharia → Custom → Natural Law & Justice

This is the most important formula to remember.

8. Third Source — Islamic Sharia

Islamic Sharia has a constitutionally recognised role in the UAE legal system.

The current Civil Transactions Law expressly places Sharia after legislation when there is no applicable legislative provision.

This does not mean that every civil dispute begins with a general search through religious rules.

The statutory hierarchy is important:

If legislation provides the applicable rule, the legislative provision is applied.

Sharia becomes especially important where the legislation does not provide an applicable rule.

9. Usul Al-Fiqh and Interpretation

Article 2 of the current Civil Transactions Law provides that the rules and principles of Islamic jurisprudence (Usul Al-Fiqh) are to be referred to for understanding, interpretation and construction of legislative texts.

This is different from Article 1.

Article 1

Deals with gap-filling.

Article 2

Deals principally with interpretation and construction.

Therefore:

Article 1 tells the court what source to use when legislation does not resolve the issue; Article 2 assists the court in understanding and interpreting legislative texts.

10. Fourth Source — Custom (Urf)

Urf means an established practice or custom that is accepted within a particular community or commercial environment.

Examples could include established commercial practices concerning:

• delivery;
• payment;
• measurement;
• industry procedures;
• trade practices;
• construction practices.

But not every practice is legally binding.

For a custom to operate under Article 1, it must satisfy the statutory conditions, including not conflicting with public order or public morals.

11. Types of Custom

A. General custom

A practice generally followed by a broad section of society.

B. Local custom

A practice followed in a particular Emirate.

The current Civil Transactions Law specifically recognises the possibility that where the custom is specific to a particular Emirate, its rule applies to that Emirate.

C. Commercial custom

A practice developed in a particular trade or commercial sector.

For example:

A particular industry may have an established method of calculating delivery periods.

If legally relevant and properly established, such custom can assist in determining the parties' obligations.

12. Custom Must Not Contradict Mandatory Law

Custom cannot override a mandatory statutory provision merely because traders have followed a different practice.

The basic relationship is:

Mandatory legislation > conflicting custom

This is why Article 1 expressly limits custom by reference to public order and public morals.

13. Case Law 1 — Access Group DWC LLC v BLS International FZE [2023] DIFC CFI 091

This case is particularly useful for understanding how UAE civil-law rules operate through legislation, custom and good faith.

The dispute involved contracts governed by onshore UAE law.

The DIFC Court discussed the former UAE Civil Code provisions, including:

• Article 106 — abuse of rights;
• Article 246 — good-faith performance;
• Article 258 — contractual interpretation;
• Article 265 — interpretation where clarification is required.

The Court noted that contractual obligations could extend beyond express wording to matters arising from law, custom and the nature of the transaction. It also discussed good faith and customary practices.

Importance

The case demonstrates the interaction between:

legislation + custom + good faith + contractual interpretation.

Exam principle

Custom can supplement contractual obligations where the applicable civil-law rules recognise its relevance.

14. Case Law 2 — Ashok Kumar Goel v Credit Suisse (Switzerland) Ltd [2021] DIFC CA 002

This case involved guarantees governed by UAE law.

The DIFC Court of Appeal considered the former UAE Civil Code rules on contractual interpretation.

The Court explained that where interpretation is required, the court may examine:

• mutual intention;
• nature of the transaction;
• trust and confidence;
• customary practices.

The Court emphasised that interpretation seeks the parties' legally relevant joint intention rather than merely applying isolated words.

Importance for sources of law

It illustrates that statutory civil-law provisions themselves determine the interpretive methodology.

The judge does not simply rely on personal preference.

Principle

Judicial interpretation operates within the framework established by legislation.

15. Case Law 3 — Credit Suisse (Switzerland) Ltd v Ashok Kumar Goel [2020] DIFC CFI 066

The Court of First Instance also considered the UAE Civil Code's rules concerning contractual interpretation.

It explained that the former Article 265 required the court, where interpretation was necessary, to investigate the mutual intentions of the contracting parties while considering the nature of the transaction and customary dealings.

Importance

This case shows how courts use statutory rules to resolve ambiguity.

It also demonstrates the difference between:

source of law and judicial interpretation.

The statute supplies the rule; the court applies and interprets it.

16. Case Law 4 — Qatar General Insurance & Reinsurance Company QSPC v Emrgent Risk Solutions Ltd [2024] DIFC CFI 053

This case involved UAE-law contractual principles concerning:

• expression of will;
• contractual interpretation;
• good faith;
• binding force of contracts;
• hardship.

The judgment reproduced and discussed the relevant UAE Civil Code provisions concerning expression of consent and contractual interpretation.

Importance

The case demonstrates how courts translate broad statutory civil-law principles into concrete contractual disputes.

Principle

Judicial decisions develop the practical meaning of statutory civil-law provisions but do not replace the legislation itself.

17. Case Law 5 — MAG Financial Services LLC v Theron Entertainment LLC [2017] DIFC CA 006

The dispute concerned contractual interpretation and damages.

The Court considered the UAE Civil Code's rules concerning interpretation, including:

• clear contractual language;
• mutual intention;
• nature of the transaction;
• customary dealings.

The Court also considered the consequences of contractual breach and damages.

Importance

This case illustrates the importance of:

statute → interpretation → application → remedy.

It is useful for demonstrating how codified UAE civil law is applied by courts.

18. Case Law 6 — Michael George Forbes v Robert Kidd [2023] DIFC CFI 081

The Court considered the requirements for formation of a valid contract under UAE law.

The judgment referred to the relevant Civil Code provisions concerning:

• mutual acceptance;
• essential contractual obligations;
• defined subject matter;
• lawful cause;
• expression of intention.

The Court explained that consent may be expressed through words, writing, acts or other conduct showing mutual consent.

Importance

This case demonstrates the role of legislation as the primary source for fundamental civil concepts such as:

• contract formation;
• consent;
• contractual validity.

Principle

Courts derive the basic legal requirements of a contract from the applicable statutory framework.

19. Case Law 7 — Abu Dhabi Court of Cassation, Judgment No. 179 of 2024

This decision is useful for the subject of statutory interpretation and contractual meaning.

It has subsequently been referred to in UAE-law litigation concerning the interpretation of contractual provisions. In Access Group v BLS International, the DIFC Court cited the decision in discussing interpretation where contractual language requires clarification.

Importance

The case demonstrates the role of UAE appellate/cassation judgments as interpretive authorities.

This is different from saying that UAE civil law follows the doctrine of binding common-law precedent.

20. Case Law 8 — Dubai Court of Cassation, Judgment No. 288 of 2025

This decision is relevant to the principle of good-faith contractual performance.

It was cited in Access Group v BLS International in connection with the requirements of good faith, including honest performance, avoidance of deception and abusive conduct, and protection of legitimate interests.

Importance

It illustrates how courts develop practical guidance about the meaning of statutory principles.

Thus:

Legislation is the source; judicial interpretation explains its practical application.

21. Are Judicial Decisions a Source of UAE Civil Law?

This is an important examination question.

The answer requires qualification.

The UAE is fundamentally a codified civil-law jurisdiction. It does not operate on the same doctrine of stare decisis found in traditional common-law systems.

Therefore:

In a common-law system

Previous binding judgment → generally binding on lower courts.

In the UAE civil-law system

Legislation → primary legal rule
Judicial decisions → interpretation/application and persuasive or authoritative guidance depending on the court and legal context.

The UAE Government describes the country's civil system as predominantly codified.

Therefore, it is safer academically to say:

Judicial decisions are an important interpretive source or authority in UAE civil law, but they should not generally be described as a common-law-style primary source of law.

22. Fifth Source — Natural Law and Justice

Article 1 of the current Civil Transactions Law places principles of natural law and rules of justice at the final stage of the statutory hierarchy.

The sequence is:

1. legislation;
2. Islamic Sharia;
3. custom;
4. natural law and justice.

This means the judge does not immediately jump to broad ideas of fairness whenever a dispute arises.

Instead, natural law and justice operate as a last-resort source where the preceding sources do not provide a rule.

23. Sixth Source — International Treaties

International agreements can also become relevant sources of applicable law in UAE civil and commercial disputes where the UAE is a party and the treaty applies to the dispute.

Examples can include treaties dealing with:

• international commercial transactions;
• recognition and enforcement of judgments;
• arbitration;
• carriage;
• intellectual property;
• investment;
• other cross-border relationships.

The exact legal effect depends on the treaty and the UAE constitutional/statutory framework.

24. Seventh Source — Local Emirate Legislation

The UAE is a federation.

Therefore, civil-law analysis can require distinguishing:

Federal legislation

Applicable throughout the UAE where federal competence and the legislation provide.

Emirate legislation

Applicable within the relevant Emirate and within the legislative competence of the Emirate.

Examples can include legislation dealing with:

• property;
• tenancy;
• real estate registration;
• local economic activity;
• courts;
• government contracts.

This is why a civil-law problem should begin with:

Which Emirate? Which court? Which legal regime?

25. Special Legal Systems: DIFC and ADGM

The UAE contains special financial free zones with distinct legal frameworks.

DIFC

The DIFC has its own laws and courts and generally uses a common-law-based framework for many matters.

ADGM

ADGM similarly has its own legal framework, heavily influenced by English common law.

Therefore:

DIFC/ADGM law should not simply be treated as identical to mainland UAE civil law.

A case decided by a DIFC Court may be very useful for comparative analysis of UAE-law concepts, particularly where the DIFC Court is applying onshore UAE law, but it does not automatically become a binding mainland UAE precedent.

26. Relationship Between Sources

The sources should not be viewed as completely separate.

They interact.

Example

Suppose a commercial contract does not clearly specify a particular delivery practice.

The court may examine:

Contract wording

↓

Applicable legislation

↓

Statutory interpretive rules

↓

Commercial custom

↓

Good faith

↓

Judicial interpretation

The result is a legal conclusion based on the applicable hierarchy.

27. Public Order as a Limitation

Public order is extremely important.

A contractual arrangement or customary practice cannot simply override mandatory legal requirements because the parties agreed to it.

The current Civil Transactions Law expressly identifies matters of public order and also treats mandatory legal rules as non-derogable.

Therefore:

Freedom of contract operates within mandatory law and public order.

28. Public Morals

Custom also has limits.

Article 1 provides that custom cannot operate where it conflicts with public order or public morals.

Therefore:

Established practice ≠ automatically valid legal rule.

The court must ask whether the practice is legally acceptable.

29. Good Faith as a Civil-Law Principle

Good faith is not usually described as an independent “source” equivalent to legislation.

Rather, it is a general civil-law principle incorporated into statutory rules.

The current Civil Transactions Law expressly reinforces good-faith performance. The UAE Government's explanation of the new law also highlights good faith as an important principle in contractual relationships.

Thus:

Good faith is primarily a statutory civil-law principle whose meaning is developed through judicial interpretation and application.

30. Example: Sale Contract

Suppose A sells machinery to B.

The parties dispute delivery.

Step 1 — Legislation

The court first checks the applicable statutory provisions.

Step 2 — Contract

The court examines the agreement.

Step 3 — Interpretation

If the agreement is unclear, statutory interpretive rules apply.

Step 4 — Custom

The court may consider relevant commercial practice where legally relevant.

Step 5 — Sharia

If legislation leaves a genuine gap, the statutory hierarchy permits reference to Sharia.

Step 6 — Justice

If no applicable rule exists in the preceding sources, the final statutory stage permits principles of natural law and justice.

31. Example: Construction Dispute

A contractor and developer disagree over the meaning of a technical delivery term.

The court might examine:

• contract;
• applicable civil legislation;
• construction regulations;
• technical standards;
• commercial custom;
• course of dealings;
• expert evidence.

But the expert's opinion is evidence, not automatically a source of law.

This distinction is important:

Evidence helps prove facts; sources of law provide legal rules.

32. Example: Digital Contract

Suppose a smart contract automatically transfers a digital asset.

The court may examine:

1. electronic-transactions legislation;
2. Civil Transactions Law;
3. contract terms;
4. electronic evidence;
5. applicable custom;
6. Sharia where the statutory hierarchy requires it;
7. judicial interpretation.

The fact that the transaction occurred through code does not eliminate the hierarchy of legal sources.

33. Difference Between Source of Law and Evidence

Simple rule

Law tells the court what rule to apply; evidence tells the court what happened.

34. Difference Between Source of Law and Legal Commentary

Textbooks and academic commentary are useful for understanding UAE civil law.

However, they are generally secondary materials, not equivalent to legislation.

The hierarchy should therefore not be written as:

Textbook → Law → Case

Instead:

Legislation → applicable statutory hierarchy → judicial interpretation → academic explanation

Academic writing helps explain the law but does not normally create the legal rule.

35. Six Core Cases for Examination

The first six are DIFC judgments dealing with UAE-law principles in the circumstances described above; the last two are mainland UAE appellate authorities referenced in later UAE-law judicial discussion.

36. Important Principle: UAE Is Not Purely “Sharia Law” or Purely “Civil Law”

A common examination mistake is to describe the UAE as having only one source of law.

The better description is:

The UAE has a codified, mixed legal system in which Islamic Sharia has a constitutionally recognised role and civil legislation provides detailed rules for most private-law relationships.

The UAE Government itself describes the system as a mixed system combining codified civil law, Sharia and, in the DIFC, common-law principles.

37. Current 2026 Position

For current legal research, it is important not to rely exclusively on the old Federal Law No. 5 of 1985.

The current position is:

Old law

Federal Law No. 5 of 1985 — Civil Transactions Law

New law

Federal Decree by Law No. 25 of 2025 — Civil Transactions Law

Effective date

1 June 2026

Effect

The new law repealed the former Civil Transactions Law.

Consequently, older cases applying the 1985 Code remain useful for understanding the development of UAE civil-law doctrine, but their statutory references must be checked against the 2025 Law when applying the law to a current dispute.

38. Exam-Friendly Hierarchy

Remember:

L-S-C-J

L — Legislation

↓

S — Sharia

↓

C — Custom

↓

J — Justice/Natural Law

This is the easiest way to remember Article 1 of the current Civil Transactions Law.

39. Key Principles to Remember

1. Legislation is the principal practical source

Courts begin with the applicable statutory provisions.

2. Sharia has a defined statutory role

It becomes relevant in the hierarchy where legislation does not provide the applicable rule.

3. Usul Al-Fiqh assists interpretation

Article 2 expressly recognises Islamic jurisprudential principles for interpretation and construction.

4. Custom can fill a legal gap

But only within the limits established by law.

5. Local custom may have local application

The current law expressly recognises Emirate-specific custom.

6. Natural law and justice come last

They are not the first source consulted whenever a judge considers a result unfair.

7. Judicial decisions interpret the law

They are important authorities but should not automatically be characterised as common-law binding precedents.

8. DIFC and ADGM require separate analysis

Their legal systems cannot simply be equated with mainland UAE civil law.

40. Exam-Ready Conclusion

The sources of UAE civil law are based on a structured statutory hierarchy. Under the current Civil Transactions Law, the court first applies the relevant legislative provisions. Where legislation contains no applicable rule, Article 1 directs the court to Islamic Sharia, followed by custom (Urf) where Sharia provides no ruling, and finally principles of natural law and rules of justice where no applicable custom exists. Article 2 separately recognises Usul Al-Fiqh as an aid to understanding, interpretation and construction of legislation.

The UAE's civil-law system is fundamentally codified, so legislation occupies a central position. Judicial decisions are nevertheless important because they explain how statutory rules operate in real disputes. Cases such as Access Group v BLS, Ashok Kumar Goel v Credit Suisse, Credit Suisse v Goel, Qatar General Insurance v Emrgent Risk Solutions, MAG Financial Services v Theron Entertainment, and Forbes v Kidd demonstrate the practical role of judicial interpretation in applying UAE civil-law principles.

The most important modern development is the replacement of the 1985 Civil Transactions Law by Federal Decree by Law No. 25 of 2025, effective from 1 June 2026, making the new Civil Transactions Law the principal statutory reference for current UAE mainland civil-law research.

Quick Revision Formula

CONSTITUTION → LEGISLATION → SHARIA → CUSTOM → NATURAL LAW & JUSTICE → JUDICIAL INTERPRETATION

One-line answer

The UAE's civil law is primarily based on codified legislation, supplemented under the statutory hierarchy by Islamic Sharia, custom, and ultimately principles of natural law and justice, with judicial decisions providing important interpretation and application of these rules.