The 30-year-old actress - who split from London-based Russian millionaire Egor Tarabasov earlier this year - was reportedly seen flirting with a "tall, dark and handsome" man in the financial district of Dubai.
A witness told the New York Post newspaper: "She enjoyed a few drinks with him and a group of friends. They were also dancing together."
However, the source also observed that the 'Mean Girls' star "was very well-behaved".
Speculation surrounding Lindsay's love life comes shortly after it was reported that she is living in a hotel after being asked to leave her London rental apartment.
The Hollywood star was issued with court papers by lawyers acting for the landlord of a £3.5 million flat she was leasing in Knightsbridge, after she failed to pay £77,600 owed in rent.
Lindsay raised the money to pay off her debts and move out of the property and into Blake's hotel in the British capital.
But Lindsay - who has also been romantically linked to Dennis Papageorgiou, her partner in a Greek nightclub called Lohan - was said to be planning to leave the hotel in order to stay with a friend.
A source said: "Lindsay has been in a complete financial mess. She has been staying at a smart hotel but has now had the offer of staying at a friend's apartment whilst she tries to sort herself out."
Prior to that, Egor reportedly accused the actress of stealing items from him, worth a total of £24,000, including a Rolex Oyster watch, designer clothing and a small gold crucifix, which belonged to his late godfather.
A friend of Egor said: "Lindsay is in an absolute mess. She has blown virtually all her money, and has basically resigned herself to being declared bankrupt ... The whole situation is incredibly tragic, and for Lindsay this is an astonishing fall from grace.
"The thing he really wants back and which, ironically, is of very little monetary value, is a small gold Russian orthodox cross which was given to him by his dead godfather."