Enforcement of Foreign Judgments under UAE Civil Procedures: Procedures and Challenges

  • 07 October
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The enforcement of foreign judgments in the UAE is a topic of great importance, especially as global commerce and cross-border relationships continue to grow. Whether you're a business owner, a creditor, or a legal professional, understanding the steps involved in enforcing foreign court decisions in the UAE is crucial.

Let’s discuss the process and highlight some key challenges relevant to UAE laws, often handled by experienced Dubai Advocates-

Understanding the Basics: What is a Foreign Judgment?

Before we jump into the specifics, let’s first define what we mean by a "foreign judgment." A foreign judgment is essentially a court decision made in a country outside the UAE. It could involve anything from a financial claim, a business dispute, or any legal matter where one party is trying to collect damages or enforce a ruling.

For example, if a company in Germany wins a lawsuit against a company in Dubai, the German company may want to enforce that judgment in the UAE to collect damages. But the process isn’t as simple as presenting the ruling to a UAE court. There are specific procedures and hurdles involved. What procedures and what hurdles? Let’s see-

Procedures for Enforcing Foreign Judgments in the UAE

The UAE follows strict guidelines when it comes to recognizing and enforcing foreign judgments. These procedures are governed by Federal Law No. 11 of 1992 on the Civil Procedure Law (as amended), and more specifically, Cabinet Decision No. 57 of 2018 on the Executive Regulations of the Civil Procedure Law.

1. Filing the Application

The first step in enforcing a foreign judgment in the UAE is to file an application with the local UAE courts. This is done through the court of first instance. The application should include a certified copy of the foreign judgment, properly translated into Arabic. Consulting with DIFC lawyers can help ensure that your application meets all necessary requirements.

2. Reciprocity Requirement

The UAE courts typically require reciprocity in enforcing foreign judgments. This means that the country where the judgment was made must also recognize and enforce UAE judgments. The idea here is simple: If UAE judgments are not enforceable in the foreign country, then why should the UAE enforce theirs?

Example: In 2016, the UAE courts recognized and enforced a British High Court judgment after confirming that UK courts would offer the same treatment to a UAE judgment.

3. Conditions for Enforcing Foreign Judgments

Several conditions must be met before a UAE court will enforce a foreign judgment. These include:

  • The foreign court must have had proper jurisdiction
  • Both parties must have been properly represented
  • The foreign judgment must be final and not subject to appeal
  • The foreign judgment must not conflict with UAE public policy or Islamic Sharia law.
Key Challenges in Enforcing Foreign Judgments

While the procedures may seem straightforward, there are several challenges that often arise when trying to enforce foreign judgments in the UAE.

Public Policy and Sharia Law: One of the major challenges is that foreign judgments must not contradict UAE public policy or Sharia law. This can be tricky, especially if the judgment involves financial interest (riba), which is prohibited under Sharia law. In such cases, UAE courts may refuse to enforce the judgment or may modify it to align with local laws.

For instance If a court in the UK awards a plaintiff interest on unpaid debts, the UAE court may reject the interest portion of the judgment while enforcing the principal amount.

Reciprocity Issues: Another common hurdle is proving reciprocity. If the foreign country does not have a track record of enforcing UAE judgments, this could pose a problem. For example, countries that don’t have a strong diplomatic or legal relationship with the UAE might struggle to get their judgments enforced.

Jurisdictional Disputes: The UAE courts may also question whether the foreign court had the proper jurisdiction over the matter. If the UAE courts believe that the foreign court didn’t have jurisdiction, they might reject the enforcement of the judgment altogether. Consulting with law firms in Dubai is crucial to navigate these jurisdictional issues.

For example If a US court rules in favor of a US company in a contract dispute with a UAE-based company, but the contract specified that disputes would be resolved in the UAE, the UAE courts could reject the US judgment due to lack of jurisdiction.

Notable Cases and Developments
1. The DIFC Courts as a Gateway

In recent years, Dubai International Financial Centre (DIFC) courts have emerged as a key player in enforcing foreign judgments. The DIFC courts are a common law jurisdiction within Dubai and have developed their own procedures for recognizing and enforcing foreign judgments, often acting as a "gateway" for enforcement across the UAE. This has made it crucial for parties to consult with DIFC law firms in Dubai for expert guidance on navigating this process.

Example: In a 2017 case, the DIFC courts enforced a judgment from the Singapore High Court, demonstrating the growing role of the DIFC in international legal matters.

2. Treaties and Bilateral Agreements

The UAE has signed several bilateral and multilateral agreements with other countries to facilitate the enforcement of foreign judgments. For example, the UAE is a member of the Riyadh Arab Agreement for Judicial Cooperation, which allows for easier enforcement of judgments among Arab countries.

What Can You Do to Avoid Challenges?

If you are looking to enforce a foreign judgment in the UAE, there are a few steps you can take to improve your chances of success:

  • Ensure Proper Jurisdiction: Make sure that the foreign court had proper jurisdiction over the case. This is one of the main reasons foreign judgments get rejected in the UAE.
  • Avoid Interest Claims: If your judgment includes an interest component, be aware that UAE courts may not enforce that part due to Sharia law. You can adjust your claim accordingly.
  • Check Reciprocity: Before starting the enforcement process, check whether the foreign country has a history of enforcing UAE judgments. If reciprocity is in doubt, consult with legal firms in Dubai for expert advice.

The enforcement of foreign judgments in the UAE is a complex process that involves several steps and potential challenges. Understanding the local laws, reciprocity requirements, and the role of public policy and Sharia law is crucial for successfully enforcing foreign judgments in the UAE.

At Alqada Claim Recovery Services, we understand the complexities of enforcing foreign judgments in the UAE. With the right strategy and expert legal guidance by our professional Dubai advocates and legal consultants, you can overcome these challenges and achieve successful outcomes. Whether you're a business or an individual, our team of experienced professionals is here to assist you with every step of the process.

Don’t leave your claims to chance- let us help you navigate cross-border litigation with confidence. Reach out to Alqada Claim Recovery Services today for personalized support and solutions tailored to your needs!


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