« Back to Glossary IndexSovereign 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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