Last updated: 30 October 2026
A business disagreement can become a criminal case in Dubai when one side files a fraud or breach of trust complaint with the police, often after a business sale, a share sale or a falling-out between partners. But the UAE Penal Code draws a line: fraud needs deception, and breach of trust needs property handed over under one of the trust contracts the law lists. A dispute over money paid under a sale contract is usually a civil matter, and the Public Prosecution can close the file with a “no case to answer” order under Article 118 of the Criminal Procedure Law.
If a complaint has been filed against you after a business deal, Leaders Advocates’ Criminal Defense Lawyers in Dubai can review the file and advise on your next step.
Criminal case in Dubai: civil dispute or crime?
The difference turns on how the money changed hands.
| Question | Crime | Civil dispute |
|---|---|---|
| Fraud | Obtaining property by a fraudulent method, a false name or a false capacity (Penal Code, Article 451) | A buyer or seller who simply fails to perform the contract, without any deception |
| Breach of trust | Misappropriating property received under a deposit, lease, pledge, loan for use or agency, including by a partner holding common property (Article 453) | Money paid as the price under a sale contract, which becomes the seller’s property and is not held in trust |
| The remedy | Prosecution and penalties | A claim for performance, termination, a refund or damages before the civil courts |
A sale price that is paid becomes the seller’s property, so a later dispute about the deal is about contract performance, not about trust property. The question is always the facts: if one side used deception to obtain the money, or held property in trust and kept it, the case can be criminal.
“Many complaints we see are contract disputes dressed up as crimes, filed to put pressure on the other side rather than to report deception,” said Faris Raian, Senior Legal Consultant in Dubai.
What a “no case to answer” order means
Under Article 118 of the Criminal Procedure Law, the Public Prosecution can close a case after investigating it.
- After investigation, the Public Prosecution can order that there is no ground to bring a criminal action, and release the accused unless he is held for another reason (Article 118(1)).
- In felonies, only a senior prosecutor can issue the order, and it takes effect only after the Attorney General ratifies it (Article 118(2)).
- The order must state the facts, their legal description and the reasons, and it is served on the victim and any civil claimant (Article 118(3), (4)).
- In misdemeanors, the Attorney General can cancel the order within three months, unless an appeal against it has already been rejected (Article 120).
Examples from our files
Three matters from our files, with clients not named, show how business disputes reach the police.
- A broker in a restaurant sale worth AED 4.25 million faced a complaint after the deal, although his role was tied to the commercial transaction.
- A complaint was filed over money paid in a share sale, a dispute that turned on the sale contract and its performance.
- A business partner charged with breach of trust over AED 736,958 was acquitted.
First steps if a complaint is filed against you
- Do not give a statement to the police or the Public Prosecution without a lawyer. Your lawyer can attend the investigation and see the case papers, unless the prosecutor decides otherwise (Criminal Procedure Law, Article 98).
- Gather the contract, the payment records, the transfer receipts and the messages that show what was agreed.
- Show how the money changed hands: as a sale price, a share price or a partner’s contribution.
- Keep any money claim in the civil courts, where performance, termination and refunds are decided.
- Ask your lawyer to request a “no case to answer” order where the facts show a civil dispute.
“The first statement often decides how the file is classified, so take advice before you explain the deal to the police,” said Faris Raian, Senior Legal Consultant in Dubai.
Questions about business disputes and criminal cases in Dubai
Can a business dispute become a criminal case in Dubai?
Yes, if one side files a fraud or breach of trust complaint. Whether it is a crime depends on deception, or on property held under a trust contract.
Is non-payment under a sale contract a crime?
Not in itself. A failure to perform a sale contract without deception is usually a civil dispute.
What is a no case to answer order?
An order of the Public Prosecution, after investigation, that there is no ground to bring a criminal action (Criminal Procedure Law, Article 118).
Can the order be cancelled?
In misdemeanors, the Attorney General can cancel it within three months, unless an appeal against it has been rejected (Article 120).
Should I give a statement without a lawyer?
No. Your lawyer can attend the investigation, and the first statement matters (Article 98).
