An Exploration of the Recognition and Enforcement of Foreign Judgments in the UAE

The UAE is recognised internationally as one of the most dynamic and commercially active economies in the Middle East. This economic vibrancy has necessitated continuous reforms in the UAE's legal framework, particularly to support its position as a global hub for trade and investment. Recent developments in UAE case law have reflected these legislative reforms, with judgments increasingly aligning with the objectives of fostering legal certainty and international cooperation.

One significant area of reform is the recognition and enforcement of foreign court judgments in the UAE. This article provides an overview of the UAE’s legal framework and procedural requirements in the context of recognition and enforcement, examining both treaty-based mechanisms and domestic laws.

Treaty-Based Enforcement

The UAE’s recognition and enforcement of foreign judgments are often streamlined through international treaties. These agreements simplify the process and promote legal cooperation. Notable treaties include:

• The 1983 Riyadh Arab Convention for Judicial Cooperation and the 1996 GCC Convention, which enable enforcement of judgments across member states of the GCC.
• The Hague Convention (2005) and bilateral agreements with countries such as France (1992) and China (2004).
• India's reciprocating territory declaration (2020), which facilitates the enforcement of judgments between the India and the UAE.

Such treaties ensure mutual recognition and expedited enforcement, reflecting the UAE’s dedication to fostering global legal collaboration.

Enforcement Without a Treaty

In the absence of a treaty, the Federal Decree-Law No. 42/2022 (Civil Procedure Law) governs the enforcement process. Articles 222–225 establish conditions for enforcement in the UAE, including:

• The issuing foreign court must have jurisdiction under its own laws;
• The judgment must align with the laws of the issuing country and UAE public policy;
• The judgment must be final and binding, with no conflicting UAE court decisions; and
• Reciprocity is implicitly required, meaning UAE judgments must also be enforceable in the foreign jurisdiction.

This framework provides clarity and ensures that judgments are executed effectively, even without a treaty.

Avenues for Recognition and Enforcement

The UAE’s judicial system provides various avenues for the recognition and enforcement of foreign judgments, catering to different jurisdictions and legal frameworks. Mainland courts play a significant role, with federal courts handling cases in five emirates, while Dubai and Ras Al Khaimah operate their independent judicial systems. These courts adhere to a structured process that typically starts with the Court of First Instance and may advance through the Court of Appeal and the Court of Cassation.

In addition to mainland courts, the UAE hosts free zone courts that operate under common law principles. The DIFC Courts specialise in commercial disputes, drawing on a framework aligned with common law. Similarly, the ADGM Courts follow comparable common law principles, offering an alternative forum for resolving disputes.

The choice of the appropriate court system is often dictated by the location of the assets subject to execution. This ensures that enforcement mechanisms are effectively tailored to the specific circumstances of each case, supporting a robust and versatile judicial framework.

Sources of Law Governing Recognition and Enforcement

The legal framework governing the recognition and enforcement of foreign judgments in the UAE differs between the onshore and offshore jurisdictions. Whilst civil law remains the foundation of the country’s onshore legal system, free zone systems, which are widely used by many entities including international businesses, are based on the common law.

Under UAE Federal Law, the primary legal sources include Federal Decree-Law No. 42/2022, which serves as the cornerstone for procedural rules, and is supplemented by various Cabinet Decisions, such as Nos. 57/2018, 33/2020, and 75/2021. These statutes collectively provide a structured approach to the recognition and enforcement process, ensuring compliance with both domestic and international standards.

In the DIFC, the recognition and enforcement of foreign judgments are guided by the DIFC Court Rules (RDC), particularly Part 45, which outlines specific procedural requirements. Additionally, the framework incorporates principles derived from the common law, offering a familiar and internationally recognised standard for litigants.

Similarly, the ADGM adopts a comparable approach through its Court Procedure Rules (CPR), specifically Part 34, which governs the recognition and enforcement process. Like

the DIFC, the ADGM integrates common law principles into its framework, further enhancing its appeal to international parties.

Together, these legal sources underscore the UAE’s commitment to providing a flexible and robust framework for international disputes, ensuring that both civil and common law principles are effectively harmonised to meet the needs of diverse stakeholders.

Requirements and Grounds for Refusal

The requirements for recognising foreign judgments in the UAE vary depending on the jurisdiction, reflecting the nation’s diverse legal landscape.

Under UAE Federal Law, Article 222 of Federal Decree-Law No. 42/2022 outlines specific criteria for recognition. These include the issuing court's proper jurisdiction, compliance with the laws of the issuing country, proper representation and summons of litigants, and alignment with UAE public policy. Public order considerations play a significant role in this assessment, particularly in areas such as Sharia principles, employment rights, and other matters uniquely governed by UAE law.

In the DIFC and ADGM, the recognition process requires judgments to be final and conclusive and issued by a court of competent jurisdiction. Both jurisdictions provide avenues to challenge recognition on specific grounds, including fraud, procedural irregularities, or conflicts with UAE public policy. These safeguards ensure that the recognition process adheres to international standards while respecting the unique legal and cultural context of the UAE.

This meticulous approach, applied across the various judicial systems in the UAE, underscores the nation’s commitment to fairness and the consistent application of legal standards in cross-border disputes.

Enforcement Process and Alternative Options

Once a judgment is recognised, the enforcement process begins, often involving asset confiscation. Limitation periods for enforcement vary:

• UAE Federal Law: Generally, upon issuance of the order to ratify and enforce a judgment, should the judgment creditor fail to submit a request for action in the execution file for a period exceeding one year after the last action, the execution judge may order the temporary closure of the file. Additionally, an execution deed will not be executed if fifteen (15) years have passed since the date of the last enforcement action or if the same period has elapsed from the issuance of the execution deed without its execution.
• DIFC and ADGM: Six years under their respective rules.

Conclusion

The UAE’s comprehensive framework for the recognition and enforcement of foreign judgments underscores its position as a global leader in commercial dispute resolution. By combining treaty-based enforcement with robust domestic and free zone laws, the UAE provides an effective, predictable system for creditors and businesses. This unique framework not only reinforces investor confidence but also enhances the UAE’s reputation as a trusted partner in international commerce.