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.