Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 19
Preliminary Section: General Provisions > Chapter One: Provisions on the Application and Temporal and Spatial Scope of the Law > Part Three: Spatial Application of the Law
English translation
1. Contractual obligations, as to both form and substance, shall be governed by the law of the country expressly agreed upon by the parties. If they do not agree, the law of the country in which the contracting parties have their common domicile shall apply. If their domiciles differ, the law of the country where the main obligation of the contract is to be performed shall apply, unless it is clear from the circumstances that another law is intended to be applied.
2. Contracts concluded concerning immovable property shall be governed by the law of its location.
Official translation, as published by the portal.
Official Arabic text
.1 يسري على الالتزامات التعاقدية شكلاً وموضوعًا القانون الذي يتفق عليه الأطراف صراحةً، فإن لم يتفقوا يسري قانون الدولة التي يوجد فيها الموطن المشترك للمتعاقدين إن اتحدوا موطنًا، فإن اختلفوا موطنًا يسري قانون الدولة التي يتم فيها تنفيذ الالتزام الرئيسي للعقد، ما لم يتبين من الظروف أن قانونًا آخر هو المراد تطبيقه.
.2 يسري قانون موقع العقار على العقود التي أُبرمت بشأنه.
What it means when you sign
This article says which country's law governs a contract's obligations, both its form and its substance. The law the parties expressly agree on applies. If they have not agreed, the law of the country where they share a domicile applies. If their domiciles differ, the law of the country where the main obligation of the contract is to be performed applies, unless the circumstances clearly show that another law was intended. Contracts about immovable property are governed by the law of the place where the property is located.
When you are about to sign, this article means that the governing-law clause is the first thing it looks to. A clause naming a country's law is how the parties make that choice express. A contract with no such clause leaves the question to the domicile and place-of-performance rules. For a contract about land or buildings, a clause choosing another country's law may not displace the law of where the property is.
In Fahm reports this article usually sits under: Jurisdiction and enforceability
Related articles
- Article 18This article says which country's law governs property.
- Article 20This article says which country's law governs obligations that do not come from a contract, such as those arising from an act that causes harm.
- Article 28This article deals with what happens once a foreign law has been found to apply.
- Article 29Cited in Fahm reportsThis article sets a limit on applying foreign law.
- Article 30This article says what happens when a foreign law applies but cannot be established.
- Article 105This article states a principle about using a right.