The UAE consists of seven emirates, together forming the Union and the UAE as a whole. Accordingly, the Union is considered a federal system for sharing sovereignty between a central governing authority and several different emirates.  

When the Union was being formed, the Constitution was drafted to allow for each emirate, in addition to being affiliated to the federal system, to establish its own local courts. This option was sought by three emirates, namely Ras Al Khaimah, Abu Dhabi and Dubai, which have all established their own local courts. 

However, there are specific circumstances in which it is mandatory for the Federal Courts in Abu Dhabi to adjudicate on a given matter. For example, a claim against a private company in Abu Dhabi would normally be filed before the local Abu Dhabi Court of First Instance. Where the defendant is a federal body, the claim has to be filed before the Federal Court of First Instance in Abu Dhabi.