What You Need to Know About Civil Asset

Recovery in the UAE?

Author: Dr. Hassan Elhais

Introduction

The civil procedure in the UAE is governed by the Federal Law No 11 of 1992 (Civil Procedure Code) as
amended, along with the Cabinet Decisions (including Cabinet Decisions 57 of 2018 and 33 of 2020), and
resolutions, etc. issued from time to time. The Civil Procedure Code regulates the procedure for litigation in
civil, commercial, administrative, labour and personal status matters. It also governs the procedure of
appeals and execution of judgments.

The court system in UAE is hierarchal and operates both at the federal level and a local level.

Sharjah, Ajman, Fujairah and Umm Al Quwain are part of the federal judicial system whereas Abu Dhabi,
Dubai and Ras Al-Khaimah have their own local judicial systems.

At both federal and local level, the judicial system is divided into the courts of first instance and the court of
appeal. At the local level, the court of appeal is followed by the court of cassation which is the highest court
in the relevant Emirate. At the federal level, the appeals court is followed by the Federal Supreme Court,
which is the highest court in the federal judiciary system.

Court Proceedings

Once court proceedings are initiated by filing a statement of claim (along with the relevant details such as
names and addresses of the parties and details of the claim), a hearing date is pronounced with the defendant
required to submit a memorandum of defense.

Once the proceedings have been completed, the judge will pronounce its judgement setting out the reasons
for its judgement.

Enforcement of the Judgement

Upon the final judgement being pronounced, execution proceedings are required to be initiated by the
judgement creditor.

According to Article 97 of the Cabinet Decision 57 of 2018, execution is preceded by service of writ of
execution. A notice to pay the debt will be issued to the debtor, who will have 15 days from the date of the
notification to make payments.

If the execution is based upon evacuation of a property or by delivery of a movable or real estate, these funds
shall be specified with the notice. Any date set for evacuation or delivery will also need to be mentioned in
the notice issued to the debtor.

Provisional Seizure & Other Actions

If the judgment creditor believes, based on serious evidence, that the debtor will flee or smuggle or conceal
his funds, leading to loss of creditor’s guarantee of right to receive funds, the creditor may request the court
to provisionally seize property and assets of the debtor under Article 111 of the Cabinet Decision 57 of
2018. The court may conduct necessary investigations, request statements, evidence and affidavits before
accepting the application for seizure.

In addition to provisionally seizing the assets of the debtors, the creditor may, in accordance with the
Cabinet Decision 57 of 2018, as part of the enforcement proceedings, request the court to impose: (a)
attachment/seizure of movables or debts of debtor in hands of a third party; (b) attachment of stocks, bonds,
revenue and shares; (c) attachment and sale of real estate; and (d) bankruptcy proceedings.

The judge also has the right to order the imprisonment of the debtor under Article 183 of the Cabinet
Decision. The debtor may also be placed under a travel ban under Article 188 of the Cabinet Decision.

Conclusion

The execution proceedings are a key step in concluding the lawsuit filed in the courts in the UAE. It is
crucial to ensure that any judgment received by a person is executed in accordance with the rules and
regulations and within the time frame as well.

Related Links
Points to remember when enforcing foreign judgement
UAE Law: Choice of governing law and jurisdiction
Learn the outcome of first ever judgment concerning Covid-19 in UAE now!

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