Enforcement of English Judgments and Costs Orders in the UAE

Bryan J, by dismissing a security for costs application by (some of) the defendants, made the following key points:

Reciprocity: He held that it is clear that there is reciprocity of enforcement of judgments between the UAE courts and the English court. He considered the effect of the letter published by the UAE Ministry of Justice on 13 September 2022 and the requirement that the relevant foreign courts enforce UAE judgments in like manner.  The judge found that the letter put beyond any doubt that the requirement to reciprocity is met vis-à-vis the English Court [62];

Public policy: He found that enforcement of a costs order is not contrary to UAE public policy, even if the sums awarded are for legal costs. He also noted that the DIFC Courts award legal costs and that the UAE courts enforce arbitral awards which contain awards of legal costs in circumstances where the New York Convention does allow refusal of enforcement on grounds of public policy [87];

Jurisdiction: He found no credible basis on which the UAE Court would have any jurisdiction for the specific claims the Bank has brought in the English Court and still less that it would have exclusive jurisdiction [71];

Offshore DIFC enforcement: He considered enforcing an English judgment for costs in the offshore DIFC Court and the onshore UAE Court separately. The judge found a straightforward route would be to enforce the judgment in DIFC and then to enforce the resulting DIFC judgment in the UAE [43].

Comment

This decision provides comfort to English judgment creditors that there is a straightforward route to enforcement of judgments and costs orders in the UAE, both in the offshore and onshore courts. Further, defendants facing claims before the English courts from claimants resident in the UAE may now find it more difficult to obtain orders for security for costs (often tactical, in addition to practical, in such proceedings).

We have specialist lawyers experienced in acting for UAE individuals and companies before the English courts, including in connection with security for costs applications and enforcement. We have international expertise across all sectors, please contact us if you need advice.