Reciprocity Of Foreign Judgements And Cross-Jurisdictional Litigation – From The UAE Perspective

In today's globalised economy, commercial disputes often span multiple legal systems. The ability to recognize and enforce such judgements is vital for ensuring legal certainty, promoting international commerce and enabling efficient dispute resolution. These issues are especially relevant for the United Arab Emirates ("UAE") - a global business hub that attracts foreign investment and facilitates international trade. As such, understanding the UAE's framework for cross-jurisdictional litigation and foreign judgement enforcement is essential for businesses, legal practitioners and policymakers.

Understanding Cross-Jurisdictional Litigation

Cross-jurisdictional litigation arises when legal disputes extend beyond one country's borders, involving parties, assets or contractual obligations across different legal systems. The UAE's dual legal framework includes both onshore civil law courts and offshore common law courts - notably the Dubai International Financial Centre ("DIFC) and the Abu Dhabi Global Market ("ADGM"). This duality presents both opportunities and challenges. On the one hand, it offers litigants flexibility in forum selection. On the other hand, it gives rise to jurisdictional challenges and procedural complexities.

A key issue is jurisdictional authority - which court has the competence to hear and decide the case. In a general sense, the UAE courts apply a combination of statutory rules and judicial principles to determine their jurisdiction in cross-border disputes, and the main metrics they rely on to establish such authority are as follows: (i) domicile/residence of defendant, (ii) place of contract execution/performance, (iii) jurisdiction clause (party autonomy), (iv) exclusive jurisdiction, (v) legal nexus/connection to UAE, (vi) public policy considerations, (vii) court structure (onshore/free zone), and (viii) reciprocity/treaties.
To address this, the UAE established a Conflict of Jurisdiction Tribunal in 2024 to resolve jurisdictional disputes between the DIFC and the Dubai courts. While this brings clarity on jurisdictional boundaries, certain matters involving disputes over commercial agency, employment and real estate remain the exclusive domain of the onshore courts, even if the parties have agreed otherwise in the contract.

Another layer of complexity is the choice of law in cross-jurisdictional disputes. In Dana Gas v Sukuk Holders (2017), multiple courts (Sharjah, London and British Virgin Islands) were involved in a dispute over whether Islamic bonds (sukuk) violated Sharia principles. The sukuk contracts included a choice of law clause specifying that English law would govern the agreements. Ultimately, the UK High Court upheld the sukuk's validity under English law, and the UAE courts upheld that choice of law - highlighting the respect for contractual autonomy and foreign law in cross-jurisdictional cases.

Mutual Recognition of Foreign Judgements in the UAE

The recognition and enforcement of foreign judgements in the UAE are governed by Articles 222-235 of the Federal Civil Procedure Law, which outlines the conditions under which a foreign judgement may be enforced:

UAE courts do not have exclusive jurisdiction over the matter;
• The foreign court had proper jurisdiction;
• The judgement is final and binding;
• Reciprocity exists between the UAE and the issuing jurisdiction, and
• The judgement does not violate UAE public policy.

Although this may seem straightforward, its application faces challenges. Firstly, the public policy limitation has been interpreted broadly by UAE courts, particularly in judgements involving Sharia principles, family law or inheritance disputes. While understandable within the UAE's socio-legal framework, this opens the door to inconsistencies and unpredictability, especially for international litigations who may have acted in good faith under foreign jurisdictions.

Additionally, the requirement of reciprocity presents difficulties as enforcement can be denied if the foreign country does not recognise UAE judgements. This is especially critical as creditors cannot use the UAE legal system to compel payment or asset recovery from a debtor who has assets or business interests within the UAE, leaving creditors without a practical means of recovery against UAE-based assets.

Role of Offshore Courts (DIFC and ADGM)

The DIFC Courts and ADGM Courts provide additional paths for enforcement. Both courts are empowered to recognise and enforce foreign judgements based on less restrictive criteria than the federal courts.

Under the DIFC Court Law No.10 of 2004, DIFC Courts can ratify foreign judgements of a recognised foreign court. This allows them to act as a "conduit jurisdiction", whereby a foreign judgement is recognised and enforced without any geographic link to the DIFC thereby positioning themselves as a critical gateway for global enforcement.
• Under the ADGM Courts Regulations of 2015, the ADGM Courts can enforce foreign judgements. Notably, in 2025 a Memorandum of Understanding ("MoU") was signed between the ADGM and Dubai Courts which eliminated the requirement to re-examine the merits of ADGM judgements. This development streamlines cross-jurisdictional enforcement, improving legal certainty and boosting investor confidence.

Treaty-Based Recognition Mechanisms

The UAE has signed various multilateral and bilateral treaties to facilitate cross-border enforcement of judgements, reinforcing its commitment to an internationally integrated legal framework. Key examples include:

GCC Convention for the Execution of Judgements (1996) - allows automatic enforcement of judgements across Gulf states, reducing legal risk and enforcement costs within the region.
• Riyadh Arab Convention (1983) - promotes judicial cooperation among Arab League countries and enhances legal predictability for individuals and businesses involved in transnational matters.
• Bilateral treaties signed with countries such as France (1992), China (2004) and India (2020) - provides mutual enforcement mechanisms for commercial and civil judgements, which in turn support foreign direct investment by increasing confidence in legal outcomes. The influx of business can lead to job creation, increased demand for local services and overall economic growth.

However, one of the challenges faced is the limited scope of bilateral and multilateral treaties governing mutual recognition of judgements. While the UAE is a party to the GCC Convention and the Riyadh Arab Convention, these are primarily applicable within Gulf and Arab nations. For other countries, enforcement relies on limited bilateral treaties or the principle of reciprocity, which UAE courts interpret cautiously. For example, in 2022, the UAE's Ministry of Justice issued a letter stating that reciprocity with the UK could be established as English courts had accepted the enforcement of UAE judgements. Despite this, the letter is not legally binding, and the UAE courts may still require applicants to provide evidence of reciprocity. Nevertheless, this is a significant move towards fostering access to justice for expatriates and residents and ensuring predictability for individuals involved in transnational matters.

Looking forward, the 2019 Hague Judgements Convention offers a multilateral solution, wherein if the UAE becomes a signatory, it would effectively streamline the enforcement of judgements across 30+ countries, including the EU, strengthening its legal framework for international disputes.

As cross-border commercial activity expands, the UAE's approach to cross-border litigation and foreign judgement enforcement plays a pivotal role in shaping its legal and economic landscape. The country has made significant progress through legislative reforms, court cooperation and treaties, to enhance cross-border litigation and the enforcement of foreign judgments. Yet gaps remain - particularly in consistency, public policy broad interpretation and treaty coverage. To address such issues, the DIFC Law No.2 of 2025 was introduced which broadens the DIFC Courts' jurisdiction, allowing them to hear cases even when they have no direct connection to the DIFC, as long as both parties agree in writing to resolve their dispute there. The law also expanded the DIFC Courts' ability to grant interim relief for foreign disputes, enhancing cross-border asset protection.

By continuing to modernise its enforcement mechanisms and engaging with global frameworks like the Hague Judgements Convention, the UAE can position itself as a model jurisdiction for transnational legal cooperation. In doing so, the nation reinforces not only its legal credibility but also attractiveness as a trusted global economic partner.

References:

Decree No. 29 of 2024 - Conflicts of Jurisdiction Tribunal, UAE Legislation Portal. Retrieved from uaelegislation.gov.ae.
• Federal Decree- Law No. (42) of 2022 Promulgating the Civil Procedure Code. Retrieved from uaelegislation.gov.ae
• Dana Gas v Sukuk Holders (2017), Judgment Document, Sukuk.com. Retrieved from sukuk.com.
• DIFC Courts Law No. 10 of 2004, DIFC Legal Database. Retrieved from difc.com.
• DIFC Law No. (2) of 2025, Concerning Dubai International Financial Centre Courts
• DIFC as a Conduit for Enforcement, Singularity Legal. Retrieved from singularitylegal.com.
• ADGM Courts Regulations (2015, Amended 2018), ADGM Legal Database. Retrieved from Thomson Reuters.
• Cross-Jurisdictional Enforcement and Treaty Applications, Lexis Middle East eJournal (April 14, 2025). Retrieved from lexismiddleeast.com.
• Agreement No. 1 of 1997 (Saudi Arabia) on Cross-Border Judgment Enforcement, Lexis Middle East Legal Database. Retrieved from lexismiddleeast.com.
• Riyadh Arab Convention (1983) on Judicial Cooperation, Refworld Legal Repository. Retrieved from refworld.org.
• UAE Foreign Judgment Recognition Case Study, Lexis Middle East eJournal (October 10, 2022). Retrieved from lexismiddleeast.com.
• Legal Developments on Foreign Judgment Reciprocity in the UAE, Lexis Middle East News (September 14, 2022). Retrieved from lexismiddleeast.com.
• Hague Judgments Convention (2019) Full Text, Hague Conference on Private International Law (HCCH). Retrieved from hcch.net.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Akhil Jinesh
BSA Law
Level 6, Building 3, The Gate Precinct
Dubai International Financial Centre
PO Box 262
Dubai
UNITED ARAB EMIRATES
Tel: [phone]
Fax: [phone]
E-mail: [e-mail]
URL: www.bsabh.com

© Mondaq Ltd, 2025 - Tel. [phone] - http://www.mondaq.com, source Business Briefing