In a move that takes a huge step forward in fostering cooperation between the UAE and English legal systems, courts in UAE have been granted the power to enforce judgements given in civil and financial cases in England and Wales.
Judge Abdul Rahman Murad Al Bloushi from the International Corporation Department at the Ministry of Justice announced the directive. Prompted by an English High Court order to uphold a judgement from a Dubai court relating to a bounced cheque by a British citizen.
Lenkor vs Puri
The Dubai court of cassation had passed a judgement on Lenkor Energy Trading DMCCV Puri (2020) EWHC75 (QB). The British courts enforced this decision opening the door for reciprocity. The move is a huge step in upholding principles of law between the two countries.
The news could have a far-reaching impact and potentially open the floodgates for the enforcement of prior unpaid orders on the British ex-pat community in the UAE. Previously individuals sentenced in civil cases in the UK had used the UAE as an escape route to avoid their financial obligations following British court rulings.
“After the new decision… the UAE will not be a safe haven for anyone trying to smuggle their money,” said Dr Hassan Elhais, legal consultant at Al Rowaad Advocates
It will change the climate for those individuals fleeing their obligations and no doubt strengthen relations and increase the practice of exchange between UAE and UK-based legal systems. It certainly demonstrates a desire to strengthen cooperation in mutual legal and judicial relationships.
Question on money flow
It marks a recent increase in questions over how money flows into the UAE. Investment in the country by the wealthy has long been encouraged but without the scrutiny of its source. The war in Ukraine however, has prompted questions about the flow of money into the UAE from Russian sources.There have also been notable arrests in the UAE of international suspects in major crimes. British national Sanjay Shah was accused of a $1.7 billion tax fraud scheme and the arrest of South African criminals wanted by President Jacob Zuma for the theft of state money.
Factors in upholding judgements
Dr, Elhais has cautioned, however, that the residential status of individuals will be called into play on these judgements. The time scale of filings and residential visas may well prove to be determining factors as to whether orders are upheld.
There are of course instances that will still cause UAE courts to exercise caution on English court judgements.
The Cabinet Decision still allows for UAE courts to review the merits of the English court judgement.
The decision however does not need to be drafted into law and already applies to non-criminal civil, financial, and marital judgements. It is worth noting that Scottish and courts in Northern Ireland have not yet entered into this reciprocal agreement.
