Commercial contracts in the United Arab Emirates are among the most important legal instruments governing commercial relationships and determining the allocation of rights, obligations, and risks between contracting parties. In light of a modern commercial environment characterised by rapid economic development and increasingly complex commercial transactions, precise legal drafting has become an essential necessity not only for evidencing agreements, but also for minimising disputes, enhancing commercial stability, and protecting commercial interests.
This practical memorandum addresses the importance of drafting and interpreting commercial contracts in the United Arab Emirates from both a legal and practical perspective. It also reviews the essential elements of professional contract drafting, including the preliminary framework of the contract, core obligations, regulatory provisions, and execution requirements. Furthermore, it addresses the importance of precise drafting as a means of risk management and achieving contractual certainty.
This memorandum also examines the interpretation of commercial contracts in light of the established legal principles in the United Arab Emirates, including the principle of good faith, the common intention of the parties, and the principle that “the contract is the law of the contracting parties”. This approach reflects the methodology adopted by courts and arbitral tribunals in the State when interpreting contractual provisions and addressing cases of ambiguity in commercial agreements.
Written by Abubaker Karmustaji & Emad Elhabbak
To read the full article, click here Drafting and Interpretation of Commercial Contracts
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This article was first published by LexisNexis Middle East.
02 July , 2026
