« Back to Glossary IndexGoverning Law
Governing law refers to the legal framework that applies to a contract or business agreement, determining how disputes will be interpreted and resolved. In the UAE, parties can freely choose the governing law for their contracts, unless public policy dictates otherwise. UAE Civil Law (Federal Law No. 5 of 1985) generally applies to contracts between UAE-based entities, while DIFC and ADGM free zones allow businesses to adopt English common law as their governing framework. For international contracts, arbitration centers like DIAC and ICC UAE enforce agreements under widely recognized legal principles.
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