UAE Ministry of Justice supports mutual enforcement of UK judgments

On September 13, 2022, the UAE Ministry of Justice issued a letter informing the Dubai Courts that the UK Courts have recognised the UAE judgments and therefore have met the reciprocity requirement when considering whether to enforce the UK judgments. This is a major development that is expected to make the enforcement of UK judgments in the UAE more straightforward, although this remains the case where enforcement is not automatic.

Previously, when seeking to enforce a UK judgment, the judgment creditor had to satisfy the requirements of the UAE courts, which, among other things, would enforce the UAE judgment, which led to a high risk of inconsistency between cases. While not strictly binding on UAE courts, the Ministry of Justice letter appears to at least partially address the issue, as it states that UAE courts should recognise that reciprocity does now exist between the courts of the two jurisdictions when it comes to enforcing each other’s judgments .

The UK verdict mentioned in the DOJ letter is Lenkor Energy Trading DMCC v Puri [2021] EWCA Civ 770, concerning the enforcement of UAE judgments in England (caused by claims relating to dishonoured cheques). The UK Court of Appeal held that the judgment of the Dubai Supreme Court of Appeal should be recognised and enforced in the UK as the UAE courts have jurisdiction over the dispute, the judgment is final and does not contravene UK public policy.

While the Ministry of Justice’s confirmation of reciprocity is expected to simplify the enforcement of UK judgments in the UAE as a whole, other recognition and enforcement criteria will still need to be met under the general rules for the enforcement of foreign judgments. These standards are contained in the UAE Civil Procedure Code (Federal Law No. 11/1992) and Cabinet Decision No. 57/2018, namely:

1. UAE courts do not have exclusive jurisdiction over disputes.
2. Foreign courts have jurisdiction according to their own rules and make judgments appropriately according to those rules.
3. Defendants were subpoenaed and appeared in foreign courts.
4. The judgment is final (i.e. has res judice).
5. The judgment does not conflict with the judgment or order of the UAE, nor does it violate the public morals of the UAE.

Still, the Justice Department letter is a welcome development. It is expected to provide greater confidence to those seeking to enforce UK judgments in the UAE and demonstrate the commitment of UAE courts to maintaining a good judicial relationship with UK courts for the mutual benefit of both countries.