Contract

Contract Law Overview in UAE

Contract

Contracts are the foundation of all business relationships in the UAE. In a rapidly changing and multi-cultural business environment, it is extremely important to have a clear contract that ensures protection of your interests and risk reduction.

No matter what type of business activities your company is engaged in – from construction works and real estate transactions to commercial activities or company partnership – a good contract can help to avoid possible problems and disagreements.

At RH & HALE Lawyers, our team specializes in drafting and reviewing contracts in the UAE. We will help you to find practical solutions to all legal matters and create effective contracts under UAE law.

Contract Law Overview in the UAE

Contracts form the basis of business transactions in the UAE. Any contract be it commercial, civil, labor, property, supply, or services should abide by the regulations outlined in the UAE Civil Transactions Law and the UAE Commercial Transactions Law.

According to the laws of the UAE, an effective contract should have:

  • A clear offer,
  • Acceptance,
  • Lawful subject matter, and
  • Parties with legal capacity. 

The UAE’s system of contract regulation is based mainly on the Civil Transactions Law (Federal Law No. 5 of 1985), which has been replaced by the Civil Transactions Law (Federal Decree Law No. 25 of 2025) starting from 1 June 2026. Commercial contracts also rely on the Commercial Transactions Law (Federal Law No. 18 of 1993).

Poor drafting of contracts often leads to misunderstandings between developers, main contractor, sub-contractors, consultants, and suppliers. Given the value and strict deadlines of the projects, having the right legal guidance for construction contracts UAE and FIDIC contracts UAE is very important.

Common Contract Problems Faced in the UAE

The following are the common issues that many businesses face due to poor contract drafting:

  • Lack of clarity of some provisions that results in different interpretations.
  • The imbalance of risk distribution so that one of the parties is too much at risk.
  • Non-compliance with compulsory clauses of the UAE law.
  • Weak payment terms causing the failure or delay of payments.
  • Lack of variation management, delay and extension-of-time (EOT) clauses.
  • Lack of termination and dispute resolution provisions.
  • Contradictions between the conditions of the FIDIC contract and local legislation.
  • Lack of adequate confidentiality, indemnity and force majeure provisions.
  • Difficulties in sub-contracting and back to back arrangements.

These can lead to formal disputes, project delays, financial losses and strained business relationships. However, most of these problems can be avoided with early professional assistance by conducting a thorough contract review in Dubai and the UAE. 

How RH & HALE Helps with Contracts?

Our approach towards contract law is both proactive and pragmatic. Not only do we ensure that all legal requirements are met, but we also help you create a contract that helps you achieve your commercial aims and minimize disputes in the future.

Some of the services we provide include:

  • Preparing contracts which are well-balanced and clearly stated.
  • Complete review and redlining of already existing contracts.
  • Help in negotiations and achieve favorable terms for our clients.
  • Creating contracts which comply with both UAE and FIDIC law.
  • Identifying potential risks and creating mitigation strategies.
  • Helping to improve important clauses which regulate issues such as payments, variations, liabilities and dispute resolution.
  • Full compliance with all laws and regulations in various Emirates.

No matter if you are a developer trying to obtain a huge project, a contractor coordinating many subcontractors or a company forming new commercial relations, our contract drafting lawyer in Dubai will guide you through all stages of the process.

Our Contract Law Services

Our firm, RH & Hale, provides the following services regarding the creation and handling of contracts:

  • Preparation and examination of all commercial contracts such as those for sales, supply, service, distribution, agency and franchising agreements.
  • UAE Construction Contracts, specifically FIDIC (Red Book, Yellow Book, Silver Book) contracts, as well as tailor-made contracts. 
  • Subcontract agreements and back-to-back contract arrangements.
  • Joint Venture Agreements, shareholders’ contracts, and partnership deeds.
  • Non-disclosure agreement (NDA), confidentiality agreement and protection of Intellectual Property.
  • Variation orders, change management and extension of time (EOT) clauses.
  • Payment terms, retention money, performance bond and security provisions.
  • Termination clauses, dispute resolution and governing law provisions.
  • Amendments and addendums of contracts, and novation agreements.
  • Risk assessment and compliance audit of existing contracts portfolio.

Our contract services are available to all developers, contractors, subcontractors, consultants and suppliers in the UAE.

Our Contract Process

We work with you in a clear and client-friendly process:

  1. First Consultation: In our first meeting we ask you for the details, goals and concerns of your project, and listen carefully to identify your wants and needs.
  2. Drafting or Complete Review: Our lawyers draft new contracts or critically review your existing documents in clear, plain language.
  3. Risk Analysis & Recommendations: We point out potential risks and give you actionable recommendations to improve your position.
  4. Negotiation & Completion: We work with you throughout the other party’s negotiation and make sure the contract is signed in your favor.

Why Choose RH & Hale for Contract Services?

  • Expert knowledge of UAE Civil Transactions Law and contract law practices on an international level
  • Wide experience with UAE construction contracts and FIDIC contracts.
  • Expert advice in terms of contract negotiation with no use of overly complicated legal language
  • We ensure to handle successful negotiations on behalf of our clients.
  • The fastest response and great support services
  • The ability to offer individually-tailored services according to the specific needs of each of our clients and the industries they work with.

We are ready to offer you the best legal and commercial advice in order to achieve your objectives and protect your interests.

Safeguarding Your Contracts

Having a good contract now helps to avoid serious problems in the future. We will be happy to provide you with any needed services ranging from contract drafting to contract review in Dubai and assistance with construction contracts and FIDIC contracts. Feel free to contact our experts for a confidential consultation.