Enforcement of Court Judgments and Foreign Judgments in the UAE

The enforcement of court judgments in the UAE is governed by Federal Decree-Law No. 42 of 2022 (the “Civil Procedure Law”). This process is detailed in Articles 206 to 338, which outline the steps available to creditors to ensure successful enforcement of judgments.

Execution Department, Supervising Judge, Notification of Parties and Initiating Execution

Once a final judgment is obtained, it must be submitted to the court’s execution department, where an execution judge oversees the enforcement. The judge reviews the judgment to ensure it meets procedural and substantive standards, issuing an execution writ as outlined in Articles 212 and 213 if the judgment is valid.

Once the execution writ is issued, all involved parties must be notified of the initiation of execution procedures. If this notification is unsuccessful, the process requires a public notice in the newspaper, followed by a 15-day waiting period before the execution can proceed.

Investigation Process, Asset Inquiry and attachment of Shares and Financial Securities

The execution department conducts an investigation to identify the debtor’s assets. This process involves sending inquiry letters to various UAE authorities, and it requires court approval through the court portal.

To investigate bank accounts, a formal request is submitted to the court, which then sends an inquiry to the UAE Central Bank to verify the existence of any debtor accounts. If assets are found, a freezing order may be issued, and funds transferred to the court’s treasury, ultimately benefiting the creditor.

Vehicle Registration: Inquiries can be directed to the Road and Transport Authority [SMS1]?to locate vehicles registered in the debtor’s name. If vehicles are identified, the court may issue an attachment and freezing order under Article 264, potentially followed by an auction, with proceeds directed to the court’s treasury.

Movable Property: Articles 264 to 282 govern the attachment of movable property, following a similar process for identification and liquidation through auction.

The court may issue inquiry letters to financial authorities (Articles 283-284), like the Dubai Financial Market or Abu Dhabi Securities Exchange, to locate and freeze any shares, bonds, or financial instruments owned by the debtor. Identified assets may be auctioned to satisfy the judgment.

Real property and commercial license

If the debtor owns real property, the court can issue inquiries to the relevant Land Department to identify registered assets. Located properties may be frozen and auctioned, with proceeds directed to the creditor. If the debtor operates a business, the Dubai Economic Department may freeze the trade license, restricting commercial activities until the outstanding obligation is resolved.

Preventive Travel Ban (Article 324) and Imprisonment Orders

In cases where the debt exceeds AED 10,000, a preventive travel ban may be requested if there is a serious concern that the debtor may leave the country before fulfilling obligations. Exceptions apply, such as in maintenance cases. If all attempts to recover assets fail, a court may issue an imprisonment order against the debtor as a last resort to compel debt repayment.

These steps—from issuing an execution writ to conducting asset investigations and, if necessary, issuing freezing or imprisonment orders—are structured to maximize debt recovery options under Articles 206 to 338 of the Civil Procedure Law.

Enforcement of Foreign Judgments in the UAE

The UAE enforces foreign judgments under [SMS2]?the UAE Civil Procedure Law, with conditions specified in Article 85. Enforcement is generally granted if the following criteria are met (i) Reciprocity with the foreign country issuing the judgment; (ii) Final Judgment Status of the foreign judgment (iii) Jurisdictional Competency of the foreign court. (iv) Due Process for both parties in the foreign proceedings.

Treaties and Agreements and Enforcement of UAE Judgments Abroad

The UAE has bilateral and multilateral treaties to facilitate enforcement of judgments from certain countries, such as the GCC Convention and the Riyadh Convention, which streamline enforcement across member states. Additional treaties exist with countries like India, France, and China, easing enforcement of judgments from these jurisdictions. However, without such treaties or established reciprocity, enforcement can be challenging.

The enforceability of UAE judgments abroad depends on reciprocal arrangements with the foreign jurisdiction. In countries with formal reciprocal enforcement or treaties, such as those under the Riyadh Convention, UAE judgments are generally more easily enforced. Some countries, like France, require an “exequatur” process, where a local court reviews and recognizes the UAE judgment before enforcement can proceed. UAE law allows creditors to apply for interim relief, including asset freezing orders and attachments, to prevent debtors from dissipating assets during litigation. This helps preserve assets for satisfying the judgment. Creditors can also pursue asset sales at public auctions if necessary.

Challenges to enforcing foreign judgments include issues with reciprocity, time limitations, and the need for document translation. UAE public policy may also prevent enforcement if the foreign judgment conflicts with local principles, such as prohibitions on interest (riba) under Islamic law. Engaging a UAE legal expert is recommended to navigate these requirements and ensure compliance for successful enforcement.

The enforcement process under the Civil Procedure Code and Article 85 of the UAE Civil Procedure Law is designed to provide effective avenues for creditors to enforce both UAE and foreign judgments, securing due compensation in alignment with UAE laws.?

Written by - Mr. Sanjeev Kandathil

?[SMS1]Not used anywhere else. Hence, not required to define.

?[SMS2]As discussed, this law is abrogated and replaced by Federal Decree-Law No. 42 of 2022