Enforcement of Foreign Court Judgments in the UAE and Dubai: An Interview with Khalil Asayesh, Legal Expert on Foreign Judgment Enforcement in the UAE

Introduction

Enforcing foreign court judgments in Dubai often presents several challenges. Dubai courts can only consider claims against parties based in foreign countries if the specific conditions outlined in Article 21 of the Civil Procedure Code (CPC) are met, such as when the claims involve assets located in Dubai. While the Dubai courts operate outside the federal judicial system of the UAE, in practice, their approach to recognizing foreign judgments aligns with other parts of the UAE, as they adhere to federal CPC laws. Commercial parties often specify in contracts that disputes will be referred to particular courts. However, Dubai courts typically disregard such jurisdiction clauses unless they have jurisdiction under the CPC. The Dubai Court of Cassation has also declared that jurisdiction clauses are void for reasons of public policy if the UAE courts have jurisdiction.

Until recent legal reforms, enforcing foreign court judgments in Dubai was difficult for international parties. However, in recent years, legal reforms in the UAE, particularly in Dubai, have paved the way for better enforcement of foreign court judgments. The UAE has joined two important regional conventions that affect the capability and speed of enforcing foreign judgments. These two conventions include the Gulf Cooperation Council (GCC) Convention and the Riyadh Convention. Furthermore, the UAE has acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The courts of the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) have signed memorandums of understanding (MOUs) with several leading commercial courts regarding mutual enforcement of foreign judgments.

In this regard, to gain a deeper understanding of the details and procedures of enforcing foreign court judgments in Dubai, we have conducted an interview with Khalil Asayesh, a legal expert specializing in foreign judgment enforcement in Dubai and a lawyer in Tehran. In the following, we will explore the issues and challenges associated with the enforcement of such judgments through a Q&A format.

Conditions for the Enforcement of Foreign Judgments in the UAE

Can Dubai Courts Enforce Foreign Court Judgments?

Yes, but the enforcement of foreign judgments depends on specific conditions.

What Legal Conditions Must Be Met for Enforcing a Foreign Judgment in the UAE?

For a foreign judgment to be enforced in the UAE, the courts must ensure that the judgment falls within the scope of certain legal conditions. These conditions are outlined in Articles 222 to 225 of the Civil Procedure Code (NCPL).

What is the First Condition for Enforcing a Foreign Judgment in the UAE?

The first condition is the jurisdiction of the foreign court. The court issuing the judgment must have jurisdiction according to the laws of its own country. It must be proven that the court had the legal authority to hear the case and correctly issued the judgment under its own laws.

What Conditions Must Be Met Regarding Fair Trial Principles in the Foreign Court?

The foreign court must conduct the trial in a fair manner, in accordance with its own legal principles. This means that the parties must be properly and legally summoned, each party must have an equal opportunity to present their defense and evidence, and neither party should be deprived of their fundamental rights.

What Characteristics Must a Foreign Judgment Have to Be Enforceable in the UAE?

The foreign judgment must be final and conclusive, meaning it must no longer be subject to appeal or objection. This condition is essential to prevent delays in enforcement and to ensure its legality and enforceability.

Can the Enforcement of a Foreign Judgment Be Rejected Due to Contradiction with UAE Laws?

Yes, a foreign judgment may be rejected if it conflicts with public order or accepted moral standards in the UAE. If the content of the judgment is contrary to the fundamental laws or ethical principles accepted in the UAE, the court may refuse to enforce it.

Can the Existence of a Similar Judgment in the UAE Prevent the Enforcement of a Foreign Judgment?

Yes, if UAE courts have already issued a ruling on the same matter or if a similar case is pending, the UAE court may refuse to enforce the foreign judgment to avoid conflicting or overlapping with domestic laws.

Which Article of the Civil Procedure Code (CPC) Relates to the Enforcement of Foreign Court Judgments?

Article 235 of the Civil Procedure Code pertains to the enforcement of foreign court judgments.

Do Dubai Courts Always Enforce Foreign Court Judgments?

No, Dubai courts only enforce foreign judgments when they do not have jurisdiction over the original case.

Does Article 235 of the Civil Procedure Code Provide Specific Conditions for Enforcement?

Yes, this article stipulates that the country of origin must accept the judgment, and the Dubai courts must not have jurisdiction over the original case.

If Dubai Courts Have Jurisdiction Over the Original Case, Can They Enforce a Foreign Judgment?

No, if Dubai courts have jurisdiction over the original case, they cannot recognize or enforce a foreign judgment.

Do Additional Conditions, Such as the Finality of the Judgment, Affect Its Enforcement?

No, even conditions such as the finality of the judgment will not apply if the Dubai courts have jurisdiction over the original case.

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Steps for Requesting the Enforcement of a Foreign Judgment in the UAE

How Can a Request for Enforcement of a Foreign Judgment Be Made in the UAE?

To request the enforcement of a foreign judgment, the interested party must submit their application to the Court of First Instance.

What Steps Must Be Taken in the Initial Stage of Requesting the Enforcement of a Foreign Judgment?

In this stage, the applicant must submit their petition along with the necessary documents (such as the judgment, a certificate of finality, and official translations of the documents, if required) to the Court of First Instance. The applicant must also provide the necessary documents to prove the legal conditions for enforcing the judgment.

How Long Does the Court of First Instance Take to Decide on the Request After Receiving It?

The Court of First Instance must review and decide on the application within three working days from the date of receipt. This decision may include acceptance of the application, rejection, or a request for additional information.

What Happens If the Applicant’s Request Is Accepted?

If the applicant’s request is accepted and all legal conditions are met, an enforcement order is issued. The applicant can then initiate enforcement actions, such as seizing assets, arresting individuals, or withdrawing from bank accounts.

Can the Judgment Debtor Appeal the Enforcement Order?

Yes, the judgment debtor has the right to appeal the enforcement order within 30 days from the date of notification. The court will then decide whether the appeal suspends the enforcement of the judgment. However, in most cases, the appeal does not automatically suspend enforcement unless the court decides to stay the order.

Legal Basis for Enforcing Foreign Judgments in the UAE

What is the Legal Basis for Enforcing Foreign Judgments in the UAE?

The enforcement of foreign judgments in the UAE is governed by the new Civil Procedure Code (NCPL). This law specifically addresses the enforcement of foreign judgments in Chapter Four (Articles 222 to 225).

What Was the Previous Law for Enforcing Foreign Judgments in the UAE?

Previously, Article 85 of the Executive Regulations was used for reviewing and enforcing foreign judgments. However, with the adoption of the new law, these provisions have been updated to provide more detailed conditions for enforcing such judgments.

What Role Does the UAE Civil Procedure Code Play in Enforcing Foreign Judgments?

The UAE Civil Procedure Code is one of the key legal documents that sets out the general principles of litigation and enforcement of foreign judgments, including specific conditions for their enforcement.

Does the UAE Civil Procedure Code Have Specific Conditions for Enforcing Foreign Judgments?

Yes, the code outlines specific conditions for the enforcement of foreign judgments and compares them with domestic laws to ensure that they are consistent with UAE legal principles.

Foreign Judgments from Countries with Bilateral and Multilateral Treaties in the UAE

What Treaties Does the UAE Have to Facilitate the Enforcement of Foreign Judgments?

The UAE is a signatory to several international treaties that facilitate the enforcement of foreign judgments. These treaties are typically designed to enable the recognition and reciprocal enforcement of judgments between member states.

What Are the Most Important Treaties of the UAE for Enforcing Foreign Judgments?

The most important treaties for enforcing foreign judgments in the UAE are:

Riyadh Convention 1983: A treaty that facilitates the enforcement of judgments between Arab countries.

Gulf Cooperation Council (GCC) Treaty 1996: A treaty that facilitates the enforcement of judgments between GCC member states.

What Effect Does the Riyadh Convention 1983 Have on the Enforcement of Foreign Judgments?

The Riyadh Convention 1983 facilitates the enforcement of judgments between Arab countries and establishes conditions for the recognition and reciprocal enforcement of judgments between member states.

What Role Does the GCC Treaty Play in Enforcing Foreign Judgments?

The GCC Treaty 1996 is designed to facilitate the enforcement of judgments between the member states of the Gulf Cooperation Council and helps in the recognition and reciprocal enforcement of judgments between these countries.

Enforcement of Foreign Judgments in the DIFC and ADGM Independent Financial Centers

What Are the Independent Judicial Centers in the UAE?

The UAE has two independent judicial centers that operate under different legal systems than the mainland UAE judicial system:

Dubai International Financial Centre (DIFC) Courts.

Abu Dhabi Global Market (ADGM) Courts.

What System Do DIFC Courts Follow for Enforcing Foreign Judgments?

The DIFC Courts follow the common law legal system and can recognize and enforce foreign judgments without the need to prove reciprocity. This feature allows the DIFC Courts to expedite the enforcement process for foreign judgments.

Do ADGM Courts Operate Similarly to DIFC Courts?

Yes, the ADGM Courts also follow the common law system and adopt the same expedited and simplified process for enforcing foreign judgments.

Are There Differences Between the Judges of DIFC and ADGM Courts?

Yes, one key difference is that the DIFC and ADGM Courts often employ international judges with experience in commercial and financial matters, which enhances expertise and experience in resolving commercial and financial disputes.

Enforcement of Foreign Judgments in DIFC Courts

What Is the DIFC Courts’ Approach to Enforcing Foreign Judgments?

The DIFC Courts have a different approach compared to the courts in Dubai. DIFC Courts can recognize and confirm foreign judgments based on the DIFC laws.

Which Laws Allow DIFC Courts to Confirm Foreign Judgments?

Articles 7(6) of the Judicial Authority Law and 24(1)(a) of the DIFC Courts Law (DIFC Law No. 10 of 2004) grant the DIFC Courts the authority to confirm any valid foreign judgment from a foreign court.

Is It Easy to Enforce a Foreign Financial Judgment in DIFC Courts?

Yes, enforcing a foreign financial judgment is relatively simple in the DIFC Courts, especially for defendants who are based in the DIFC or have assets there.

Key Points for Success in Enforcing Foreign Judgments in the UAE

What Documents Must Be Submitted for Success in Enforcing a Foreign Judgment in the UAE?

All documents related to the judgment must be properly translated and authenticated. These documents must be valid and accurate to avoid legal issues.

How Can the Enforcement Process Be Expedited?

Familiarity with the international treaties the UAE has with different countries can help expedite the enforcement process. Reviewing the UAE’s bilateral or multilateral treaties will help take advantage of special conditions for faster recognition and enforcement.

Can Using Independent Courts in the UAE Help Expedite the Enforcement of Foreign Judgments?

Yes, using independent financial courts such as the DIFC or ADGM Courts can speed up the process of enforcing foreign judgments, particularly if the judgment originates from a country with a common law legal system.

What Other Considerations Should Be Taken Into Account for Successful Enforcement of Foreign Judgments?

It is important to comply with all legal requirements and principles of fair trial. Additionally, understanding the UAE’s judicial procedures and utilizing experienced international judges in commercial disputes can contribute to successful enforcement. 

What Factors Are Crucial for the Success of Enforcing a Foreign Judgment in the UAE?

The success of enforcing a foreign judgment depends on several factors:

Familiarity with Local Laws and Regulations: UAE courts have complex laws that need to be followed. An experienced lawyer knowledgeable in the UAE Civil Procedure Code (NCPL) and related regulations can ensure successful enforcement.

Complexity of the Application and Enforcement Process: The enforcement process involves multiple steps, including accurate translation of documents, filing the petition with the court, and document review by the judge. An experienced lawyer dubai can efficiently navigate these steps.

Accurate and Valid Translation of Documents: Incorrect translations can lead to delays or rejection of the application. An experienced lawyer can ensure that the documents are properly and validly translated for the court.

Dealing with Objections and Legal Challenges: If the judgment debtor raises objections, a lawyer can defend the client’s rights and challenge the objections effectively.

Why is familiarity with international treaties and reciprocity laws important for the enforcement of foreign judgments in the UAE?

Familiarity with international treaties can expedite the process of enforcing foreign judgments. If the country issuing the judgment does not have a bilateral or multilateral treaty with the UAE, the attorney must consider the principle of reciprocity and provide the necessary documentation to prove support for the enforcement of the foreign judgment.

What are the differences in enforcing foreign judgments in various regions of the UAE?

The UAE has independent judicial zones such as DIFC and ADGM, which have a legal system that is entirely different from the mainland UAE judiciary. The attorney must be aware of these differences and provide the necessary guidance for the correct enforcement of a foreign judgment in each of these zones.

What issues may lead to the rejection of the enforcement of a foreign judgment in the UAE?

A fundamental condition for the enforcement of a foreign judgment in the UAE is that it must not contradict public policy and moral principles. The attorney must defend the rights of their client and ensure that there is no conflict with the legal and ethical principles of the UAE that could jeopardize the enforcement of the judgment.

How can a specialized lawyer assist in facilitating the enforcement of foreign judgments?

A specialized lawyer, with knowledge of international treaties and domestic laws, can assist in recognizing and enforcing foreign judgments from various countries. In the absence of an enforcement treaty with a particular country, the lawyer can choose the appropriate legal strategies to address this issue. Ultimately, having a lawyer for enforcing foreign judgments in the UAE and Dubai not only helps expedite the process but also prevents potential legal problems and ensures that all stages are carried out correctly and in accordance with the law. A specialized lawyer with knowledge of domestic laws, the litigation process, document translation, and defense against objections can effectively safeguard their client’s rights in this matter.

The New UAE Federal Civil Procedure Code (NCPL)

When did the new UAE Federal Civil Procedure Code (NCPL) come into effect, and what changes did it introduce compared to the previous law?

The new UAE Federal Civil Procedure Code (NCPL) came into effect on **January 2, 2023. This law replaced the previous Civil Procedure Code (Federal Law No. 11 of 1992) and introduced significant changes to the civil procedural regulations. Furthermore, the previous federal executive regulations are now seamlessly incorporated into the main text of the NCPL. 

How is the enforcement of foreign judgments regulated under the NCPL?

The enforcement of foreign judgments is regulated in **Chapter 4 (Articles 222 to 225)of the NCPL. Article 222 specifically reiterates the conditions necessary for the enforcement of foreign judgments, which were previously mentioned in the executive regulations. This law now forms an integral part of the NCPL, replacing previous delegating or subsidiary laws.

What is the impact of incorporating the enforcement regulations into the NCPL?

Now that the provisions governing the enforcement of foreign judgments have been incorporated into the main text of the NCPL, they take precedence over subsidiary laws, general federal laws, and decisions issued by the Emirate members under the UAE Constitution. In other words, in case of conflict, the laws and regulations in the NCPL will override the internal laws and regulations of the member Emirates of the federation.

Preconditions for Issuing a Foreign Judgment Enforcement Order in the UAE

What preconditions must be met for the issuance of a foreign judgment enforcement order in the UAE?

To issue an enforcement order for a foreign judgment in the UAE, the following preconditions must be met:

Jurisdiction of UAE Courts: The courts of the UAE must not have exclusive jurisdiction over the dispute in which the judgment or order was issued. Moreover, the foreign court issuing the judgment must have jurisdiction over the matter according to the rules governing international judicial competence.

Jurisdiction of the Issuing Court: The judgment or order must have been issued by a court with jurisdiction according to the laws of the issuing country, and this jurisdiction must be properly validated.

Proper Summoning of the Parties: The parties to the case in which the foreign judgment was issued must have been properly summoned and must have legal representation.

Finality of the Judgment: The judgment or order must have become final in accordance with the laws of the issuing court. The applicant must provide a certificate stating that the foreign judgment is final, or this must be stated in the judgment itself.

No Conflict with Domestic Judgments and Public Order**: The foreign judgment must not conflict with any judgment previously issued by the UAE courts. Additionally, it must not contradict the public policy or moral principles of the UAE.

What happens if a foreign judgment conflicts with a previous judgment issued in the UAE?

If the foreign judgment conflicts with a judgment previously issued by the UAE courts, the request for enforcement will be rejected. The enforcement of a foreign judgment must align with UAE’s internal laws and principles. The UAE enforcement court is limited to deciding whether the conditions specified in **Article 222 of the NCPL** have been met. In other words, the enforcement court cannot address the substance of the foreign judgment. If the conditions of Article 222 are met and there are no issues with public policy or morals, the UAE enforcement court is obliged to issue the enforcement order for the foreign judgment.

Abolishment of the Requirement to File a Lawsuit for Enforcement of Foreign Judgment in the UAE

What changes have been made to the foreign judgment enforcement process in the UAE with the abolition of the requirement to file a lawsuit?

One significant change in the new UAE Federal Civil Procedure Code (NCPL) is the abolishment of the requirement to file a lawsuit, which was previously stipulated in Article 235 of the old Civil Procedure Code (Federal Law No. 11 of 1992). Under this article, it was necessary to file a lawsuit in the enforcement court for the enforcement of a foreign judgment. This requirement has now been removed under the new law.

How has the process for enforcing foreign judgments changed under the new NCPL?

Under the new NCPL, there is no longer a need to file a lawsuit for the enforcement of a foreign judgment. Instead, the applicant is required to submit a “Request for Enforcement Order” (a simpler and streamlined procedure) to the enforcement court. This change has made the process of enforcing foreign judgments quicker and more straightforward.

What action does the Enforcement Court take after the request for the issuance of the enforcement order is filed?

According to Article 222 of the NCPL, the Enforcement Court must make a decision within five business days from the date the request is filed. This decision includes either issuing the enforcement order for the foreign judgment or rejecting it. This change helps accelerate the process of enforcing foreign judgments.

What advantages does the removal of the requirement to file a lawsuit bring to the UAE judicial system?

The removal of the lawsuit filing requirement accelerates the process of foreign judgment enforcement and reduces its complexity. Instead of going through lengthy litigation procedures, the enforcement request is now handled in a simpler and faster manner. This leads to increased efficiency and reduced time for the enforcement of foreign judgments in the UAE.

Fast Track for Recognizing and Enforcing a Judgment in the UAE

Is it possible to enforce a foreign judgment quickly in the UAE?

Yes, under certain specific conditions, the courts in the UAE can enforce a foreign judgment swiftly. In some cases, this process can be completed within a few weeks, and the other party will only be notified of the enforcement when the court issues the recognition order.

What conditions must be met for the rapid enforcement of a foreign judgment in the UAE?

One of the key conditions for the rapid enforcement of a foreign judgment in the UAE is proving the principle of **reciprocity**. This principle means that the country issuing the judgment must accept the enforcement of UAE judgments under similar conditions as per UAE laws. For example, a recent ministerial decree in the UAE confirmed that Dubai courts could enforce English judgments based on the reciprocity principle.

How can reciprocity be proven?

Reciprocity can be proven in two ways:

1. Demonstrating that the foreign country will enforce UAE judgments under similar conditions as a legal matter.
2. Demonstrating that the judgment was issued by a country that is a member of the **Riyadh Convention or the Gulf Cooperation Council (GCC).

What enforcement tools are available for the enforcement of foreign judgments in the UAE?

Once a foreign judgment is recognized by the court in the UAE, creditors can use a range of enforcement tools to pursue their claims. These tools include asset freezing and requesting information from various entities. UAE courts actively assist in identifying debtor assets and can compel entities to provide information regarding the debtor’s current or previous assets.

Do UAE courts actively cooperate in identifying debtor assets?

Yes, UAE courts actively cooperate in identifying debtor assets. Upon request, these courts can compel entities to provide information about the debtor’s assets. This process helps ensure that the enforcement process is pursued effectively and quickly.

Freezing Orders in Support of Recognition and Enforcement of Judgments in the UAE and Dubai

Under what conditions can a freezing order be requested?

A freezing order can be requested in cases where there is a risk of asset dissipation, and in support of the recognition process in the **DIFC Court**. This order may include assets located in Dubai or any other emirate of the UAE, even if no assets are present within the DIFC.

Is a freezing order limited to assets within the DIFC?

No, the freezing order can include assets located in Dubai or other emirates of the UAE, even if no assets exist within the DIFC.

What criteria and procedures apply for issuing freezing orders in the DIFC Court?

The criteria and procedures for issuing freezing orders in the DIFC Court are closely aligned with English law. For example, to demonstrate the risk of asset dissipation, specific factors such as the nature and volume of the assets and the time required for their sale must be considered to show an imminent and urgent risk of asset loss.

Can a freezing order always be requested?

A freezing order can only be requested when there is a risk of asset dissipation.