The UAE is becoming increasingly friendly to judgment creditors and can form a crucial part of a worldwide enforcement campaign.
Subject to certain conditions, courts can speedily enforce foreign judgments in the UAE within weeks, with the counterparty notified only when the court issues a recognition order.
One of these conditions is establishing reciprocity between the UAE and the country that handed down the judgment.
A party can prove reciprocity by showing the foreign country will enforce a UAE judgment as a matter of law under conditions similar to the UAE. For instance, a recent UAE ministerial circular confirmed that Dubai courts can enforce English judgments under the principle of reciprocity.
Another way to establish reciprocity is to hold a judgment from a signatory of the Riyadh or Gulf Cooperation Council (GCC) Convention.
Once a UAE court has recognized a foreign judgment, creditors have available a broad array of powerful enforcement tools through onshore courts, including freezers and discovery. UAE courts are proactive and will assist in identifying a debtor’s assets, and upon request may direct any entity to provide information on a debtor’s current or previous assets.
Kobre & Kim is a global Am Law 200 law firm that focuses on cross-border disputes and investigations, often involving fraud and misconduct. The firm: