In the UAE, all commercial activity, including that of
construction, is regulated by the UAE Commercial Transactions Law.
However, since these activities are based on contracts, in
practice, the Federal Law No. 5 of 1985, known as the UAE Civil
Code or the UAE Civil Transactions Law also comes into play.
Civil Law system: Since the UAE follows the
civil law system, as opposed to the common law system, the focus
while deciding cases in courts is given to the laws, and the
doctrine of legal precedent is not applicable. This does not mean
that the judgements of the UAE courts are not regarded. The lower
courts in the hierarchy of the court system usually adhere to the
judgments pronounced by the Courts of Cassation, that is the
highest Court of Appeal in the UAE. In cases involving construction
disputes, the UAE courts have delivered comprehensive judgements
with respect to construction laws.
