Civil Law and UAE Sources of Law

1. Introduction

The United Arab Emirates follows a predominantly codified civil-law system, but its legal structure is distinctive because it combines constitutional law, federal legislation, Islamic Sharia principles, custom, judicial interpretation, international obligations, and—within certain financial free zones—common-law-based systems.

For UAE civil law, the most important starting point is the current Civil Transactions Law issued by Federal Decree by Law No. 25 of 2025, which entered into force on 1 June 2026 and replaced Federal Law No. 5 of 1985. The new law expressly sets out the order in which courts should approach legal gaps. (UAE Legislation)

A useful basic formula is:

Constitution → Federal legislation → applicable special legislation → Civil Transactions Law → Sharia where the statute directs → custom → principles of natural law and justice

This hierarchy must, however, be understood alongside the UAE's federal structure and the separate legal regimes of places such as the DIFC and ADGM.

2. Meaning of "Sources of Law"

A source of law means the legally recognized basis from which a court obtains a rule for deciding a dispute.

Sources can be divided into:

A. Primary/formal sources

These create or establish binding legal rules, including:

UAE Constitution;

federal laws;

federal decrees by law;

applicable Emirate legislation;

regulations and executive decisions;

international treaties applicable in the UAE;

Sharia where legislation directs its application;

applicable custom.

B. Interpretative sources

These assist courts in determining the meaning or application of legal rules, including:

Federal Supreme Court decisions;

judgments of Emirate courts;

established judicial interpretation;

legal scholarship;

principles of jurisprudence.

The important distinction is that UAE judicial decisions do not operate as a general system of binding common-law precedent. Higher-court decisions have substantial persuasive and interpretative importance, but the primary source remains enacted law. (Global Practice Guides)

3. The UAE Constitution

The Constitution is the highest domestic legal instrument.

It establishes:

the federal structure;

distribution of powers;

legislative authority;

judicial authority;

fundamental rights;

relationship between federal and Emirate legislation.

Article 151 establishes the supremacy of the Constitution and provides that federal laws issued consistently with the Constitution have priority over conflicting Emirate legislation. (UAE Legislation)

Therefore:

Constitution > conflicting lower-level legislation.

The Federal Supreme Court has constitutional jurisdiction, including questions concerning constitutionality and interpretation of the Constitution. (UAE Legislation)

4. Islamic Sharia

Islamic Sharia occupies a constitutionally recognized position in the UAE legal system.

The official UAE government describes Islamic Sharia as a main source of legislation and identifies sources within Islamic jurisprudence including:

Qur'an;

Sunnah;

Ijma;

Qiyas. (U.AE)

However, it is important not to misunderstand the position of Sharia.

The UAE is not a system in which every civil dispute is decided directly from classical Sharia rules without reference to legislation.

Instead, much of UAE private law has been codified into statutes.

The current Civil Transactions Law provides a structured approach: where legislation does not address a matter, the court may resort to Islamic Sharia and select the solution appropriate to the circumstances and public interest. (UAE Legislation)

5. Current Civil Transactions Law

The most important general source for UAE civil law is now the Federal Decree by Law No. 25 of 2025 Promulgating the Civil Transactions Law.

The UAE Government describes the new law as a comprehensive modernization of the framework governing civil rights and obligations. It reorganizes general civil-law principles and seeks greater coherence between general civil law and special legislation. (UAE Legislation)

Important transitional point

Older textbooks frequently refer to:

Federal Law No. 5 of 1985 on the Civil Transactions Law.

That law was historically the principal UAE Civil Code, but the 2025 Civil Transactions Law is now the current framework from 1 June 2026. (UAE Legislation)

Consequently, older cases remain useful for understanding UAE civil-law jurisprudence, but they must be checked against the current legislation before being relied upon for a present dispute.

6. Article 1 of the New Civil Transactions Law

Article 1 is especially important for the topic of sources of law.

It provides, in substance, the following sequence:

First — Legislation

The court applies legislative provisions to matters expressly or implicitly covered by them.

Where the legislative text is definitive, there is no room for independent judicial reasoning contrary to that text.

Second — Islamic Sharia

If legislation contains no applicable rule, the court applies Islamic Sharia and selects the solution appropriate to the circumstances and public interest.

Third — Custom

If neither legislation nor Sharia provides a solution, the court may apply custom, provided that it does not conflict with public order or public morals.

Fourth — Natural law and justice

If there is no applicable custom, the court may rely upon principles of natural law and rules of justice.

This makes Article 1 one of the clearest statutory statements of the hierarchy of sources in UAE private law. (UAE Legislation)

7. Principles of Islamic Jurisprudence as an Interpretative Source

Article 2 of the current Civil Transactions Law provides that the principles and rules of Islamic jurisprudence (Usul al-Fiqh) are to be considered when understanding, interpreting and construing legislative provisions. (UAE Legislation)

This creates an important distinction:

Article 1

Deals with filling a legal gap.

Article 2

Deals with interpretation and construction of legislation.

Therefore, Sharia principles can have both:

a gap-filling function; and

an interpretative function.

8. Legislation as the Principal Practical Source

In ordinary civil litigation, enacted legislation is the most important practical source.

Examples include legislation concerning:

civil transactions;

commercial transactions;

companies;

evidence;

civil procedure;

arbitration;

labour;

consumer protection;

intellectual property;

data protection;

insolvency;

real estate.

The UAE official legislative system identifies the Constitution, federal laws, federal decrees by law, federal decrees, presidential resolutions, Cabinet resolutions and decisions of ministries and federal entities as components of the legislative system. (UAE Legislation)

9. Special Legislation

The Civil Transactions Law does not necessarily govern every civil relationship.

Special statutes may regulate particular subjects.

For example:

commercial transactions;

companies;

employment;

banking;

insurance;

arbitration;

evidence;

real estate;

consumer relationships.

The principle is commonly expressed as:

Lex specialis derogat legi generali

Meaning that a specific legal rule generally takes precedence over a conflicting general rule concerning the same subject.

The new Civil Transactions Law itself was designed partly to eliminate duplication with newer special legislation. (UAE Legislation)

10. Federal Legislation and Emirate Legislation

The UAE is a federation of seven Emirates.

Therefore, one must distinguish between:

Federal law

Applicable within the federal sphere of legislative competence.

Emirate law

Local legislation applicable within an Emirate's sphere of competence.

The Constitution establishes the hierarchy between federal and Emirate legislation. Article 151 gives priority to federal laws issued consistently with the Constitution where conflict exists with Emirate legislation. (UAE Legislation)

At the same time, some Emirates maintain their own judicial systems.

Abu Dhabi, Dubai and Ras Al Khaimah, for example, have local court structures outside the federal court system. (OUP Academic)

11. Custom — Urf

Custom is an important secondary source.

Under Article 1 of the current Civil Transactions Law, custom becomes relevant when:

legislation provides no applicable rule; and

Sharia provides no applicable rule.

Custom must also be consistent with:

public order; and

public morals.

Where the custom is specific to a particular Emirate, the new law provides that it may apply within that Emirate. (UAE Legislation)

Examples

Commercial practice may help determine:

meaning of trade terminology;

accepted methods of performance;

industry practices;

timing of delivery;

customary methods of dealing.

But custom cannot override a mandatory statutory rule.

12. Contractual Terms

A contract is not legislation, but it is an important source of rights and obligations between the contracting parties.

For example, parties can ordinarily determine:

price;

delivery;

payment;

warranties;

termination mechanisms;

dispute resolution;

applicable contractual procedures.

However, contractual freedom is limited by:

mandatory statutory provisions;

public order;

public morals;

good faith;

mandatory consumer or employment protections;

other applicable special legislation.

Thus:

Contractual autonomy ≠ unlimited freedom.

13. International Treaties

International treaties and conventions to which the UAE is party can constitute an important source of applicable legal rules.

This is particularly important in:

international commercial transactions;

arbitration;

recognition and enforcement of foreign judgments;

carriage;

aviation;

maritime law;

intellectual property;

investment.

The applicable treaty must be considered together with UAE constitutional and implementing rules.

14. Foreign Law

Foreign law can become relevant in private international law disputes.

The former Civil Transactions Law contained conflict-of-laws provisions dealing with issues such as:

personal status;

contractual obligations;

form of contracts;

tort;

property.

The UAE courts can therefore encounter situations in which a foreign legal system is potentially applicable.

However, foreign law generally needs to be properly established where the procedural framework requires proof of its content. Academic commentary notes that UAE courts have treated foreign law as a matter requiring proof and have sometimes relied on local law where foreign law has not been sufficiently established. (OUP Academic)

15. Judicial Decisions

Judicial decisions are extremely important in understanding UAE civil law.

However, UAE civil law differs from common-law systems such as England in this respect.

There is generally no doctrine of binding stare decisis equivalent to the English common-law system.

Therefore:

Previous judgment ≠ automatically binding precedent in every later civil case.

Nevertheless, decisions of:

Federal Supreme Court;

Court of Cassation in the Emirates;

are highly valuable for determining how legislation has been interpreted.

Higher-court decisions can therefore provide strong jurisprudential guidance even where they do not operate as legislation.

16. Role of the Federal Supreme Court

The Federal Supreme Court has particularly important constitutional and legal functions.

Its constitutional jurisdiction includes:

interpretation of the Constitution;

constitutional review;

federal/local jurisdiction disputes;

other functions assigned by the Constitution or federal legislation. (International Court of Justice)

Its civil and commercial jurisprudence has consequently played an important role in developing consistent interpretations of UAE legislation.

17. Case Law 1 — UAE Federal Supreme Court, Case No. 435 of Judicial Year 21

UAE Federal Supreme Court, Case No. 435 of 21 (12 June 2001).

This decision is among the Federal Supreme Court authorities cited in later UAE judicial decisions concerning interpretation of UAE civil-law principles. (ADGM)

Principle

The importance of the case lies in the Federal Supreme Court's role in interpreting codified UAE civil law.

Relevance to sources of law

It demonstrates that although legislation is primary, judicial interpretation is essential to determine:

scope;

meaning;

application;

interaction between statutory provisions.

Thus, judicial decisions are an important interpretative source even though UAE law does not operate through ordinary common-law precedent.

18. Case Law 2 — UAE Federal Supreme Court, Case No. 153 of Judicial Year 23

UAE Federal Supreme Court, Case No. 153 of 23 (10 November 2002).

The decision is cited in subsequent UAE jurisprudence dealing with the interpretation and application of civil-law rules. (ADGM)

Significance

It illustrates the continuing role of Federal Supreme Court decisions in explaining statutory rules.

The practical hierarchy is therefore:

Statutory text → judicial interpretation → application to facts.

A judge cannot simply replace legislation with personal preference.

19. Case Law 3 — UAE Federal Supreme Court, Case No. 202 of Judicial Year 13

UAE Federal Supreme Court, Case No. 202 of 13 (10 March 1992).

This decision is also cited in subsequent UAE judicial jurisprudence concerning UAE civil-law principles. (ADGM)

Importance

It demonstrates the significance of historical Federal Supreme Court jurisprudence in understanding how UAE civil-law provisions have been interpreted.

For legal research, such cases are particularly useful where:

statutory language is broad;

a legal principle has evolved over time;

the current statute continues a similar doctrinal concept.

20. Case Law 4 — UAE Federal Supreme Court, Case No. 52 of Judicial Year 29

UAE Federal Supreme Court, Case No. 52 of 29 (30 September 2009).

This authority is cited in later UAE judgments addressing principles of UAE civil law and contractual obligations. (ADGM)

Significance for sources of law

It illustrates how courts use previous judicial reasoning to explain the operation of statutory civil-law principles.

Therefore, judicial jurisprudence operates as a persuasive interpretative layer over the written codes.

21. Case Law 5 — UAE Federal Supreme Court, Commercial Cassation Nos. 84 and 178 of 2020

These Federal Supreme Court decisions concern the interpretation of contractual rights and reciprocal obligations.

They demonstrate that courts determine the legal consequences of contractual relationships by interpreting:

contractual language;

reciprocal obligations;

surrounding circumstances;

applicable statutory provisions.

Relevance

A contract is a source of obligations between the parties, but its terms operate within the framework established by legislation.

Therefore:

Contract → creates private obligations

but

Legislation → determines the legal framework within which those obligations operate.

22. Case Law 6 — UAE Federal Supreme Court, Civil Cassation No. 79 of 2020

This case is particularly useful for understanding judicial interpretation and the treatment of legal admissions and defences.

The court emphasized the importance of considering the substance of the parties' positions rather than treating individual statements in isolation.

Significance

It demonstrates how judicial interpretation works alongside legislation.

The court does not merely identify a statutory article and stop there. It must:

determine the relevant facts;

characterize the legal relationship;

interpret the applicable legal rule;

assess the evidence;

apply the law to the facts.

This makes judicial reasoning an important practical source of UAE civil-law doctrine.

23. Case Law 7 — UAE Federal Supreme Court, Junatta Bank Jurisprudence

The Federal Supreme Court's jurisprudence concerning bank interest is particularly significant when discussing the relationship between legislation and Sharia.

Academic research on UAE Supreme Court jurisprudence identifies the Junatta Bank case as an important example of the Court's treatment of Sharia and commercial interest. (United Arab Emirates University)

Importance

The case illustrates that the constitutional recognition of Sharia does not mean that every Sharia rule is automatically judicially substituted for enacted commercial legislation.

Instead, the legislature's role in determining the applicable rules of commercial and civil transactions remains important.

This is a major distinction between:

Sharia as a constitutional/main source

and

the precise statutory rules applied by courts in a particular civil dispute.

24. Case Law 8 — DIFC Court of Appeal, Iraq Telecom v Korek

Although the DIFC is a special jurisdiction rather than an ordinary onshore UAE civil court, Iraq Telecom Ltd v Korek Telecom Co LLC is useful for understanding the relationship between UAE mainland civil-law principles and the DIFC's legal framework.

The DIFC Court of Appeal discussed Article 1 and Article 3 of the former UAE Civil Code, including the role of custom and public order. (DIFC Courts)

Importance

The case illustrates that the UAE contains different legal jurisdictions.

The ordinary UAE mainland system is principally civil-law based, whereas the DIFC operates a separate common-law-based framework.

Therefore, "UAE law" cannot always be treated as a single undifferentiated body of rules.

25. Case Law 9 — Dubai Court of Cassation, Case No. 137 of 23

Dubai Court of Cassation, Case No. 137 of 23 (10 January 2004).

This decision is cited in later UAE judicial material concerning interpretation of UAE civil-law provisions. (ADGM)

Importance

It demonstrates the role of Emirate-level Cassation courts in developing the interpretation of federal civil legislation.

This is particularly important because Dubai maintains its own judicial system.

Consequently, UAE legal research should consider both:

Federal Supreme Court jurisprudence; and

relevant Emirate Court of Cassation jurisprudence.

26. Hierarchy of UAE Civil-Law Sources

For examination purposes, the hierarchy can be represented as:

Level 1 — Constitution

The supreme domestic legal instrument.

↓

Level 2 — Federal legislation

Federal laws and federal decrees by law.

↓

Level 3 — Special legislation

Special statutory regimes governing particular areas.

↓

Level 4 — Civil Transactions Law

General private-law rules where no special legislation governs.

↓

Level 5 — Sharia

Applied in accordance with Article 1 when applicable legislation does not provide a solution; also relevant to interpretation under Article 2.

↓

Level 6 — Custom

Applied when the preceding sources do not resolve the issue and subject to public order and public morals.

↓

Level 7 — Natural law and justice

Used where legislation, Sharia and custom do not provide a solution.

↓

Interpretative layer — Judicial decisions

Court decisions explain, interpret and apply the above sources.

This is a conceptual hierarchy; the precise applicable rule depends on the subject matter and the relevant statutory regime.

27. Difference Between Source of Law and Evidence

This distinction is important.

Source of law

Answers:

Where does the legal rule come from?

Examples:

Constitution;

legislation;

applicable Sharia principle;

custom.

Evidence

Answers:

How does the party prove the facts necessary to apply that legal rule?

Examples:

documents;

witnesses;

electronic records;

expert evidence;

admissions.

Therefore, a contract may be evidence of an agreement while simultaneously being the source of contractual obligations between the parties.

28. Public Order as a Limitation

Public order is another important concept.

The former Civil Code's Article 3 treated matters including:

personal status;

governance;

freedom of trade;

circulation of wealth;

private ownership;

fundamental social rules;

as matters connected with public order, subject to the relevant Sharia principles. Later UAE jurisprudence continues to discuss this concept. (JusMundi)

Public order can therefore limit:

contractual freedom;

application of foreign law;

recognition of certain arrangements;

private agreements that conflict with mandatory legal rules.

29. Principles of Justice and Natural Law

The current Civil Transactions Law expressly recognizes principles of natural law and rules of justice as a final gap-filling source where neither legislation, Sharia nor applicable custom provides an answer. (UAE Legislation)

This does not mean that a judge has unlimited discretion.

Rather, the statutory sequence establishes when such principles can be used.

The progression is:

No applicable legislation → Sharia → no applicable Sharia rule → custom → no applicable custom → natural law and justice.

30. Importance of Legal Scholarship

Legal textbooks, academic articles and commentaries are not normally equivalent to statutes.

Nevertheless, they can be highly useful for:

explaining legislation;

identifying judicial trends;

comparing Egyptian and French civil-law influences;

understanding Sharia jurisprudence;

interpreting complex doctrines;

locating relevant cases.

The UAE's civil-law tradition has historically been strongly influenced by Egyptian civil law and, through it, French civil-law concepts. The UAE government itself describes its codified legislation as drawing on Islamic law together with other civil-law traditions, including Egyptian and French influences. (U.AE)

31. Role of Egyptian and French Law

Historically, UAE civil legislation has been influenced significantly by:

Egyptian civil law;

French civil-law principles;

Islamic jurisprudence;

Arab legal traditions.

This is particularly visible in areas such as:

contracts;

obligations;

tort;

unjust enrichment;

property;

interpretation.

However, foreign legal systems are persuasive intellectual influences, not automatically binding sources of UAE law.

A UAE court must ultimately apply the UAE rule governing the dispute.

32. DIFC and ADGM: Special Legal Regimes

The UAE's legal system has an important qualification.

The DIFC and ADGM operate special legal systems influenced substantially by English common law.

Therefore, one must distinguish:

Mainland UAE

Primarily:

Civil-law/codified + Sharia-influenced system

DIFC

Primarily:

Common-law-based commercial jurisdiction

ADGM

Also:

English common-law-based framework

This means that the phrase "sources of UAE law" depends partly upon which jurisdiction is hearing the dispute.

33. Why Judicial Precedent Is Different in UAE Civil Law

In England, a lower court may be required to follow a binding decision of a higher court under the doctrine of precedent.

In the UAE mainland system, the approach is different.

The court primarily applies:

enacted legislation;

applicable statutory rules;

legally recognized secondary sources.

Higher-court judgments provide important guidance and consistency, but the system does not generally operate on strict stare decisis.

This is one of the clearest distinctions between UAE mainland civil law and the common-law systems of the DIFC and ADGM.

34. Practical Example

Suppose a UAE court receives a dispute concerning a new type of contractual transaction.

The court may proceed broadly as follows:

Step 1

Look for an applicable statutory provision.

Step 2

Check whether special legislation governs the transaction.

Step 3

Apply the relevant Civil Transactions Law provisions.

Step 4

If the legislation does not resolve the issue, consider Sharia under Article 1.

Step 5

If no relevant Sharia solution exists, consider applicable custom.

Step 6

If no relevant custom exists, consider principles of natural law and justice.

Step 7

Use judicial decisions to understand how comparable statutory provisions have previously been interpreted.

This demonstrates that UAE civil law is codified but not mechanically statutory.

35. Major Features of UAE Sources of Law

1. Codification

The UAE relies heavily on written legislation.

2. Constitutional supremacy

The Constitution occupies the highest domestic legal position.

3. Federal structure

Federal and Emirate legal powers coexist.

4. Sharia influence

Islamic Sharia is constitutionally recognized and has specific statutory roles.

5. Custom

Custom can fill legal gaps subject to statutory limitations.

6. Judicial interpretation

Courts play a major role in interpreting legislation.

7. Limited precedent doctrine

Mainland UAE does not generally follow binding common-law precedent.

8. Special jurisdictions

DIFC and ADGM operate distinctive common-law-based systems.

9. International law

Treaties can become important sources of applicable rules.

10. Natural law and justice

The current Civil Transactions Law expressly recognizes these as final gap-filling principles.

36. Examination-Oriented Comparison

37. Conclusion

The UAE's sources of civil law reflect a hybrid but predominantly codified legal system.

The most important point is that UAE civil law does not depend on one source alone. Its structure combines:

Constitution + legislation + special laws + Civil Transactions Law + Sharia + custom + justice principles + judicial interpretation + applicable international obligations.

The current Civil Transactions Law is especially important because Article 1 expressly establishes a hierarchy: legislation first; then Islamic Sharia; then custom; and finally principles of natural law and justice where the earlier sources provide no solution. Article 2 further recognizes Islamic jurisprudential principles as an aid to interpreting legislation. (UAE Legislation)

The case law demonstrates the practical importance of judicial interpretation. Federal Supreme Court and Emirate Cassation decisions help clarify statutory concepts, although mainland UAE does not generally treat judicial precedent as equivalent to binding common-law precedent.

For examination purposes, the easiest formula to remember is:

Constitution → Legislation → Special Laws/Civil Transactions Law → Sharia → Custom → Natural Law & Justice, with Judicial Decisions providing interpretation throughout.

Important current-law note: Because the new Civil Transactions Law came into force on 1 June 2026, many frequently cited cases were decided under the former 1985 Civil Transactions Law. They remain useful for jurisprudential understanding where the underlying principle continues, but the current 2025 law and its transitional provisions should be checked before treating an older case as controlling current law. (UAE Legislation)