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Letter of Intent for a Business Acquisition in the United Arab Emirates

Governing law, forum, and the drafting notes that actually change when you build a Letter of Intent for the United Arab Emirates.

Letter of Intent governed by the law of the United Arab Emirates

DealDocs sets the federal laws of the United Arab Emirates as applied in the Emirate of Dubai as the governing law when you choose the United Arab Emirates. The forum clause reads: “The Parties irrevocably submit to the exclusive jurisdiction of the Courts of Dubai in respect of any dispute arising out of or in connection with this document.”

Governing law

the federal laws of the United Arab Emirates as applied in the Emirate of Dubai

Legal system

Civil law, a civil law system, where rules are drawn primarily from codified statutes rather than from a body of judicial precedent.

Conventional arbitration seat

Dubai, United Arab Emirates

Naming a party formed here

DealDocs' guided interview references the Emirate of Dubai, United Arab Emirates when you enter a party formed in the United Arab Emirates.

What's different about a Letter of Intent in the United Arab Emirates

The same statutory good faith duty (Civil Code article 246) applies to an LOI's pre-contractual conduct, and UAE courts may look past a non-binding label if the letter contains the essential elements of a deal. Parties who want an English-language, common-law-style forum for disputes conventionally opt in to the DIFC Courts with specific, clear, and express wording (Dubai Law No. 2 of 2025); DIAC is the leading arbitral institution, and under the DIAC Rules 2022 its default seat is the DIFC.

Build your LOI for the UAE now

The guided interview asks for the governing law up front, so the right jurisdiction-specific clauses are included automatically. Preview the full plain English guide and completeness check for free before you unlock the document.

Frequently asked questions

Is a Letter of Intent binding under UAE law?

Only in the sections it names as binding, and even then the UAE Civil Code's statutory good faith duty can reach pre-contractual conduct. UAE courts may look past a non-binding label if the letter contains the essential elements of a transaction, so the Binding vs Non-Binding clause needs to be precise.

Which dispute forum applies to a Dubai business acquisition LOI?

The Courts of Dubai by default under UAE governing law. Parties who prefer an English-language, common-law-style forum conventionally opt in to the DIFC Courts with express wording, or specify DIAC arbitration, whose default seat under the 2022 Rules is the DIFC.

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