International Law

Enforcing Judgments in the United Arab Emirates Are Very Limited

By Rick Rein

The prospect of litigating in foreign courts most always concerns parties because of its unfamiliarity and costs. In the United Arab Emirates (UAE), that means conducting proceedings in Arabic, the need for necessary translation and notarization of documents and the absence of binding precedent. However, the alternative means an inability to recover claims against persons or companies and assets located in the UAE.

Some contracts contain jurisdiction clauses as to where legal proceedings can be brought. UAE courts disregard those provisions as they are deemed against public policy.

The enforcement of foreign judgments are also most difficult, if not impossible, in the absence of a treaty between the foreign country and the UAE. In order for a foreign judgment to be enforced, the biggest hurdle is that the local UAE court will not recognize a foreign judgment in circumstances where that court would have had jurisdiction over the matter. (Article 235 (2) (a) of the Civil Procedure Code). UAE courts have jurisdiction to hear all actions brought against individuals or companies having an address or place of residence in the UAE. (Article 20) A UAE court will also have jurisdiction over a foreigner that has no address or place of residence in the country if, inter alia, the foreigner has "an elected address in the country" or the action relates to assets in the UAE.

Therefore, under most circumstances when a litigant is deciding to pursue a claim against a party having an address or residence in the UAE or where the claim is against assets in the UAE, the action must in the first instance be brought in the UAE.

Full post as published by International Asset Recovery Law Blog on January 18, 2011 (boomark / email).