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The UAE can now implement UK court docket rulings, altering Dubai’s ‘protected haven’ standing

DUBAI, United Arab Emirates — Courts within the United Arab Emirates have been granted the authority to implement British authorized rulings in a number of classes of instances, in a landmark decree by the UAE’s Ministry of Justice.

The change applies to all court docket rulings for non-criminal civil, monetary and marital instances and is already in have an effect on. It represents a major step-up in cooperation between the UAE and the U.Ok., longtime companions in commerce, diplomacy and protection.

Dubai, the UAE’s industrial capital, has for years been seen as a kind of “protected haven” for individuals smuggling cash or avoiding numerous sentences in different international locations, because the UAE wouldn’t confiscate cash owed in a U.Ok. civil case ruling. This was resulting from what the UAE described as an absence of “reciprocity,” because the U.Ok. typically didn’t implement UAE court docket rulings.

The brand new ruling introduced Wednesday will, in precept, make it not doable for these sentenced in civil instances within the U.Ok. to flee to the UAE and keep away from paying money owed.

Some authorized consultants predict a surge in instances by collectors pursuing debt repayments from individuals who have left the U.Ok. for the UAE.

“For too lengthy, errant husbands or wives unwilling to satisfy monetary obligations on divorce as ordered by the English court docket, have discovered a protected haven in Dubai,” Alexandra Tribe a global household lawyer at London-based Expatriate Legislation, informed Emirati information outlet The Nationwide.

“This authorized information is prone to open the floodgates for enforcement of beforehand unpaid orders, particularly contemplating the numerous British expat inhabitants within the UAE,” she mentioned.

Dubai, United Arab Emirates

Laszlo Szirtesi | Getty Photos Information | Getty Photos

Greater than 120,000 British residents dwell within the UAE in keeping with the British Enterprise Group in Dubai and the Northern Emirates. The oil-rich Gulf nation of 10 million individuals has a roughly 90% expatriate inhabitants, and is in search of to draw but extra international expertise with the assistance of a swathe of current liberalizing financial and social reforms.

The British court docket rulings have to be remaining as a way to be enforced within the UAE, they usually additionally can not battle with a UAE court docket’s prior ruling, ought to there be one, or go towards UAE’s public order or morals, in keeping with the choice.

The change additionally comes because the UAE pushes to enhance its picture regarding cash laundering and illicit finance. The nation is understood for welcoming buyers from all international locations and backgrounds, largely with out scrutinizing the place the cash has come from. Russian cash has flowed into Dubai, notably pumping up its property sector, within the months since Moscow launched its warfare on Ukraine and because the UAE has avoided imposing Western sanctions on numerous nationalities.

The Monetary Motion Process Pressure in March positioned the UAE on its “grey record” over considerations that the Gulf nation wasn’t sufficiently stemming unlawful monetary actions.

It put the UAE beneath elevated monitoring resulting from “strategic deficiencies” in its efforts to counter money-laundering, the duty pressure mentioned on the time. The UAE’s authorities responded to the designation, pledging to “work carefully with the FATF to shortly treatment the areas of enchancment recognized.”

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