Sovereign Immunity

Sovereign immunity is a legal principle that protects governments and their entities from being sued or prosecuted without their consent. In the UAE, government bodies and state-owned enterprises (SOEs) generally enjoy immunity, except in cases where they voluntarily submit to arbitration or commercial contracts include dispute resolution clauses. However, UAE law distinguishes between sovereign (governmental) and commercial (business) activities, meaning state-owned companies engaged in commercial transactions may be subject to litigation. International investors dealing with UAE government contracts should carefully draft arbitration and jurisdiction clauses to ensure enforceability of claims.

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This article is intended for general informational purposes and does not constitute legal advice. The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend taking professional advice to ensure the best possible solution for your individual circumstances.

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ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.

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Sovereign Immunity