UAE businesses need well-drafted contracts to protect their interests. Here is the complete 2025 guide to UAE business contract templates and requirements.
UAE Contract Law Fundamentals
UAE contracts are primarily governed by: Federal Law No. 5 of 1985 (UAE Civil Transactions Code) — the primary contract law. UAE Commercial Transactions Law (Federal Decree-Law No. 50 of 2022). DIFC Contract Law (DIFC Law No. 6 of 2004) — for DIFC-incorporated companies. ADGM Contract Law (English Contract Law as applied by ADGM Courts) — for ADGM companies. Key principle: UAE Civil Code contracts can be formed verbally, but written contracts are strongly recommended. For property and share transfers: notarised contracts are required. For court enforcement: written contracts in Arabic (or with certified Arabic translation) are far more effective in UAE Courts.
Essential UAE Business Contracts
Service agreement: between your company and clients. Should include: scope of work, deliverables, timelines, payment terms, IP ownership, confidentiality, dispute resolution (UAE Courts or DIAC arbitration), and governing law (UAE law or, for DIFC entities, DIFC law). Employment contract: required by MOHRE for all UAE employees. Template: MOHRE standard employment contract (available on the MOHRE portal) plus company-specific annexures. Supplier agreement: for procurement. Include: delivery terms, payment terms, liability caps, and UAE-specific provisions (customs duties, VAT treatment). Distributorship agreement: if appointing a UAE agent or distributor. UAE Commercial Agency Law (Federal Law No. 18 of 1981) applies if the distributor is a UAE national or UAE-national-owned company — gives the agent significant protections. Be careful: appointing an agent under the Commercial Agency Law creates obligations that are difficult to unwind. Shareholder agreement: see separate guide. Lease agreement: Ejari registration required. Standard RERA lease template should be used for Dubai.