On 14 January 2025, the Dubai Courts and the Abu Dhabi Global Market (ADGM) Courts signed a Memorandum of Understanding (MoU) concerning the reciprocal enforcement of judgments. This significant step marked greater legal cohesion within the UAE. The agreement aims to eliminate procedural complexities and pave the way for seamless enforcement of court rulings between the onshore and offshore jurisdictions.
The MoU marks a pivotal milestone in the evolution of the UAE’s legal framework. It fosters greater alignment and predictability in cross-jurisdictional matters. Below, we explore the enforcement landscape before and after the signing of the MoU to highlight its substantial legal and practical advantages.
The ADGM Courts have signed several memoranda of understanding with local judicial bodies to enhance the reciprocal enforcement of judgments within the UAE. Notably, an MoU was signed with the Abu Dhabi Judicial Department on 11 February 2018. Another followed with the Ras Al Khaimah Courts on 5 May 2019. Furthermore, on 4 November 2019, the ADGM Courts signed an MoU with the UAE Ministry of Justice. This extended cooperation to the federal courts system, including Sharjah, Ajman, Umm Al Quwain, and Fujairah.
Enforcement of Judgments Between ADGM and Dubai Courts – Before January 2025
Before the MoU, parties seeking to enforce judgments between the ADGM and Dubai Courts faced several legal and procedural challenges. The enforcement approach varied depending on where the judgment was issued and where enforcement was sought. The two primary scenarios are outlined below.
1. Enforcement of ADGM Judgments in Dubai Courts
Parties had two main options for enforcing ADGM judgments in Dubai, each with its own complexities.
Option 1: Indirect Enforcement via Abu Dhabi Onshore Courts
In this route, the enforcing party first obtained recognition of the ADGM judgment through the onshore Abu Dhabi Courts. Once recognized, the judgment could be enforced in Dubai under Federal Law No. 10 of 2019. This law governs the mutual enforcement of judgments among onshore UAE courts.
Option 2: Direct Enforcement through Dubai Courts
Alternatively, parties could attempt direct enforcement through Dubai Courts. Without a formal enforcement mechanism, these cases relied on judicial discretion. Dubai Courts often treated ADGM judgments as foreign judgments. This required applying the UAE Civil Procedures Law, which involved re-examining the judgment’s merits and procedural compliance—such as certified translations and proper formatting. The lack of a uniform approach created uncertainty and procedural risk.
2. Enforcement of Dubai Court Judgments in ADGM Courts
Similar limitations applied when seeking to enforce Dubai Court judgments in the ADGM Courts. The ADGM Court Regulations allowed enforcement of foreign judgments only if a reciprocal arrangement or an MoU existed with the issuing court. Before the MoU, no such agreement was in place, which made enforcement efforts uncertain and limited.
Post-MoU: A Streamlined and Standardized Enforcement Framework
With the MoU now in effect, the judgment enforcement process between the ADGM and Dubai Courts has become simpler and more predictable. The development significantly reduces procedural uncertainty and speeds up cross-jurisdictional enforcement.
Under the MoU, the enforcement process now includes the following steps:
- The judgment must include an exequatur (formal order of enforcement) issued by the originating court.
- It must be translated into either English or Arabic, depending on the enforcing jurisdiction.
- The judgment creditor submits the application. The ADGM or Dubai Courts then proceed with direct enforcement under their respective procedural rules.
- If enforcement requires further steps, the originating court’s execution judge may delegate those tasks to their counterpart in the enforcing court. This is done through an official letter outlining the measures, along with a copy of the notice served on the judgment debtor. This applies to judgments from both courts.
Crucially, neither the ADGM nor the Dubai Courts will re-examine the merits of the judgment. The process remains procedural. This shift accelerates and simplifies cross-jurisdictional execution.
The MoU removes previous barriers and complications that hindered mutual enforcement. Once a judgment receives an exequatur, the receiving court treats it as if issued by its own judiciary. This streamlines the process and boosts legal certainty for those operating across both jurisdictions.
According to the MoU, both courts will designate a liaison officer to coordinate with their counterpart. The goal is to prevent duplication of enforcement actions, support judgment creditors, and ensure the exchange of all relevant data and statistics on referrals and direct applications made under the MoU.
Conclusion
The MoU marks a transformative development in the UAE’s legal landscape. It improves legal certainty and procedural efficiency for businesses and individuals working within both onshore and offshore jurisdictions. By simplifying and harmonizing judgment enforcement, the agreement strengthens investor confidence and judicial cooperation throughout the UAE.
This progressive step reaffirms the UAE’s commitment to building a cohesive and modern legal system that supports its global status as a hub for commerce and dispute resolution.
Seek Legal Counsel
For expert guidance on judgment enforcement, consult Dr. Kamel Elshendidy, Counsel, Abdelrahman Alqassem, Mid-Level Associate, and Wagdy Ismail, Associate, all specializing in litigation. Our team is dedicated to providing tailored legal solutions for your needs.
