Why Should You Hire a Legal Consultant in UAE?

The legal structure in the UAE has two systems: the Federal Judiciary, presided over by the Federal Supreme Court, which is the highest judicial authority in the UAE, and the local judicial departments at the local government level. A legal consultant in UAE can help navigate these systems. 

Each of the seven emirates has the right to choose either to participate in the Federal Judicial System or to maintain its own local judicial system. The emirates of Abu Dhabi, Dubai, and Ras Al Khaimah have local court systems, whereas the emirates of Sharjah, Ajman, Fujairah, and Umm Al Quwain follow the federal judicial system.

The UAE’s Courts

The UAE adopts three levels of courts, which are as follows:

1. Court of First Instance (federal and local)
2. Court of Appeal (federal and local)
3. The Federal Supreme Court (at the federal level) and the Court of Cassation (at the local level of the emirates) which have independent judicial departments.

If the ruling of the Court of First Instance is not satisfactory, it can be challenged before the Court of Appeal and then the Court of Cassation.

Importance of Advocate and Legal Consultant in UAE

Legal consultants in the UAE play a significant role in providing legal guidance and helping individuals and businesses make informed decisions about their legal issues. 

As explained further below, the role of a legal consultant encompasses various aspects such as drafting and negotiating contracts, ensuring compliance with applicable laws and regulations, identifying and minimising potential conflicts, providing assistance with dispute settlement, etc. 

The UAE’s Sharia courts have the exclusive jurisdiction to hear family disputes, including matters of divorce, inheritance, child custody, child abuse, and guardianship of minors. 

Benefits of Hiring a Legal Consultant in UAE

1. Expertise in the UAE Legal System

The UAE legal system is a complex framework of federal and local laws. Federal laws apply to the entire UAE, while local laws only apply in the emirate in which they are passed. For example, Dubai has its own laws and regulations related to real estate and rental properties.

The UAE adopts a dual legal system of civil and Sharia laws. The UAE civil law system includes a comprehensive set of rules and laws, which judges can use directly to adjudicate various disputes. 

In parallel, the UAE adopts the Sharia law system, which works alongside the civil and criminal courts (particularly within personal status courts). The UAE’s Sharia courts have the exclusive jurisdiction to hear family disputes, including matters of divorce, inheritance, child custody, child abuse, and guardianship of minors. 

In addition, the UAE’s courts may rely on principles of Islamic Jurisprudence in the construction and interpretation of the UAE laws.

Given the complexity of the UAE legal system, it is important to have a legal advisor with in-depth knowledge and experience in local laws and regulations. 

2. Compliance and Risk Management

Regulatory or Legal compliance is an essential part of running a business. It refers to a company’s adherence to the applicable laws and regulations. Regulatory compliance helps organisations avoid potential legal liabilities and ensures they do not engage in illegal or unethical practices.

Companies in UAE are required to comply with several laws and regulations, such as labour laws, intellectual property laws, tax laws, anti-money laundering laws, criminal laws, banking laws, etc. Depending on the sector, each company has its own regulatory requirements that need to be fulfilled. 

Avoiding Legal Pitfalls and Penalties

Non-compliance with laws and regulations can sometimes result in hefty fines and penalties. For example, non-compliance with the UAE Anti-Money Laundering Law can result in administrative fines ranging from AED 50,000 to AED 5,000,000. Compliance failures can also harm a company’s reputation and even result in business closure. In some cases, company executives and managers can face criminal charges, including potential imprisonment. 

Legal Advisors play an important role in keeping a company compliant with the relevant rules and regulations. They provide legal advice on regulatory matters and keep themselves up-to-date with the latest developments in the legal area. 

Legal Advisors also assess legal risks associated with business decisions and provide recommendations on mitigating those risks. For these reasons, businesses need to seek expert legal advice. 

3. Efficient Handling of Legal Documents

Drafting a contract is an essential part of a business transaction. It is an elaborate process that requires a great deal of mental activity. A well-drafted contract can help set clear expectations and thereby avoid potential disputes.

It is also important to meticulously review a contract and pay special attention to clauses such as termination, dispute resolution, damages, force majeure, etc. Legal consultants are skilled in negotiating contracts and ensuring that the terms of the contract align with the client’s best interests. They also ensure that the terms of a contract are concise, unambiguous, and compliant with laws. 

Legal consultants can assist in preparing a comprehensive checklist of the essential legal documents needed for a business transaction. 

Document management is paramount for legal consultants. It helps in keeping track of the relevant information and details. Effective document management can help to prevent disputes in the first place. In the event disputes are inevitable, documentation can serve as evidence in legal proceedings. 

4. Specialized Legal Services

Corporate Law Services in UAE

Corporate law services refer to legal services provided to various types of corporations, such as limited liability companies and joint stock companies. The services may include forming and establishing corporations, negotiating and drafting shareholders’ agreements, corporate restructuring, statutory compliance, etc.

Assistance With Mergers and Acquisitions

Mergers and acquisitions (M&A) refer to business transactions in which the ownership of a business organisation is transferred or merged with another business organisation. M&A involves complex negotiations and due diligence. Legal consultants specialised in M&A oversee the legal aspects of buying, selling, and merging companies. 

Real Estate Legal Consultation

Real estate legal consultation includes advising real estate companies on regulatory compliance and preparing documents related to real estate transactions, such as off-plan sale and purchase agreements, collaboration agreements, development agreements, etc. It also includes resolving real estate disputes between developers and buyers, such as delay in possession, breach of sale and purchase agreement, etc. 

The UAE legal system is vast and complex. Some areas of law require specialist knowledge and expertise, such as those related to construction, mergers and acquisitions, information technology, etc. Hiring a legal consultant who is proficient in a specific area of law can result in increased efficiency and better chances of a favourable outcome. 

5. Business Expansion and International Trade

Establishing a business in the UAE involves many steps, such as identifying the type of activity, determining the kind of legal entity, registering the trade name, applying for approvals for issuance of licences, etc. Legal advisors can guide and support organisations in setting up a business in the UAE.

Legal consultants can help ensure smooth business operations and expansion by managing legal documentation, maintaining regulatory compliance, negotiating, drafting, and reviewing contracts, advising on various issues, etc. 

6. Personal Legal Matters

Family law covers a range of issues, such as marital disputes, custody arrangements, inheritance, maintenance, etc. As discussed above, the UAE’s family law system incorporates Sharia law principles. 

Family disputes can be very stressful and challenging. Moreover, the UAE family law system is a mixture of Islamic and civil law, making it quite complex. That is why hiring a legal consultant specialising in family disputes is crucial.