LaWEra Group

Enforcing a Foreign Judgment or Award in the UAE: What Works

Updated 4 min read
Practice led byKate ChenSenior Corporate Consultant · International Arbitrator
Shelves of law volumes
Photo: Nasser Eledroos / Unsplash
Contents8
  1. Awards: a treaty route
  2. Judgments: no treaty, more conditions
  3. The first days
  4. Where enforcement happens
  5. Documents and how they must look
  6. Timing
  7. When there is nothing to enforce against
  8. Frequently asked questions

The scenario is familiar: you won in London, New York or Singapore, and the debtor's money is in Dubai. The first thing to establish is what you are holding, because the UAE treats an arbitral award and a court judgment very differently. The second is where the assets are, because recognition without assets is an expense with no return.

Awards: a treaty route

The UAE acceded to the 1958 New York Convention on the recognition and enforcement of foreign arbitral awards in 2006. The UK, the US and the EU states are parties. An award seated in London, Paris, Stockholm or Hong Kong is therefore recognised in the UAE under the Convention, with a short list of grounds for refusal: defective notice to a party, an invalid arbitration agreement, an award outside the scope of the clause, public policy. This is the most predictable route into UAE enforcement, and the reason so many contracts with UAE counterparties carry arbitration clauses.

Judgments: no treaty, more conditions

For judgments of foreign state courts there is no convention comparable to New York. Recognition depends on whether an applicable agreement exists between the countries and on conditions set by UAE law: the foreign court had jurisdiction, the defendant was properly served, the judgment is final, it does not conflict with public policy, and there are no parallel proceedings in the UAE. For English or American judgments the position turns on reciprocity and current practice, which we assess for the specific judgment rather than answer in general. It is less predictable than the award route, and that is worth knowing when the contract is drafted, not when the judgment is in hand.

The first days

  • Map the debtor's assets in the UAE: bank accounts, real estate, shareholdings, receivables. Recognition makes sense only against specific assets.
  • Check the decision for enforceability: is it final, is finality certified, can service on the defendant be proved.
  • Do not approach the debtor with threats, and do not accept partial payments without a written record; both become the other side's arguments.
  • Consider interim measures. An attachment before recognition is possible where grounds exist, and it is sought as early as possible, while the assets are still there.
  • Start legalisation of the documents. It takes longer than the hearing.

Where enforcement happens

The onshore courts of the emirate are the main route against assets in that emirate; proceedings are in Arabic.

The DIFC Courts for assets inside the DIFC and where the parties agreed to their jurisdiction; proceedings are in English. Whether the DIFC Courts can be used as a conduit for assets outside the centre is a question of current practice, assessed case by case.

Execution after recognition: attachment of accounts, property and shares, and a travel ban against the debtor, which according to secondary sources may also be imposed as an interim measure.

Documents and how they must look

  • The original or a certified copy of the award or judgment with certification of finality.
  • The arbitration agreement or the contract containing the clause, for awards.
  • Proof of proper service on the defendant in the original proceedings.
  • A power of attorney for a representative in the UAE.

Documents issued abroad go through consular legalisation: the UAE is not a party to the Hague Apostille Convention, so an apostille is not enough. Then an Arabic translation by a sworn translator. Defects in the bundle are the most common reason for refusal, and they are fixed before filing, not during the hearing.

Timing

Time limits for presenting a decision for enforcement are set by law and depend on the type of decision; we confirm them for your case. What we can say without qualification is that preparing and legalising the bundle usually takes longer than the hearing itself, and nobody can promise how long, because it depends on the issuing country, the number of documents and consular workloads. The earlier legalisation starts and interim measures are sought, the better the chance of finding the assets in place.

When there is nothing to enforce against

  • The debtor has no assets in the UAE and does not come to the country. Recognition produces a document, not money.
  • The defendant was not properly served in the original proceedings, and service cannot be proved.
  • The decision is not final or is under appeal where it was made.
  • The dispute is already being heard in the UAE in parallel.

In those cases it is more honest to price a negotiated settlement or a fresh claim in the UAE than to spend months on recognition that ends in refusal.

Frequently asked questions

How long does recognition take?

Nobody can say in advance: it depends on the type of decision, the completeness of the bundle, legalisation and the court. Most of the time goes into preparing documents, not the hearing.

Can assets be frozen before recognition?

Interim measures are possible where grounds exist. The application is made as early as possible.

Award or judgment: which is easier to enforce in the UAE?

The award, because of the New York Convention. For a judgment the route depends on agreements and reciprocity and is assessed for the specific decision.

This is a general framework, not legal advice. UAE law changes, and procedures differ between emirates and free zones. We review each situation individually.

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Your case, specifically

This article answers the general question. Your answer depends on who your clients are, where the money sits and what is already signed.

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