United Arab Emirates: Top Tips For Handling Disputes In The UAE

Last Updated: 22 April 2013
Article by Richard Bell and James Fox

No business wants to enter into a dispute. Disputes are often costly, tie up management time and distract staff from profitable work. In the UAE where a civil dispute is sometimes accompanied by a criminal complaint, a dispute can have a significant impact on key staff, including travel bans and the stress of facing criminal charges. Taking the right action from the beginning of a dispute can help to resolve the dispute faster, more efficiently and at less cost.

We set out below our top tips to consider when a dispute arises. This is based on our experience in dealing with a wide range of contentious issues throughout the region in diverse industry sectors. While a dispute can have serious consequences, it also represents an opportunity. If key decision makers for both parties treat the dispute as an opportunity to consider their relationship and where it went wrong, this can assist the parties to restructure the relationship in a way that not only prevents disputes in the future, but is ultimately more lucrative. This is more likely to be achieved when your business is negotiating from a position of strength – a position our top tips will help you achieve. The key things you should consider are:

The one and only

Choose one person in your organisation to manage the dispute. That person should, as far as possible, not have been involved in the circumstances that led to the dispute. Often when disputes arise, personalities get in the way which can distract the parties from considering the key issues at stake. Tasking one individual to manage the dispute in your business will mean one person has the responsibility to take care of the actions below, it will give the other individuals within your business a central point of contact, and mean that one person will have perspective on all the issues. It is also more cost efficient.  It means that the lawyers instructed do not receive conflicting instructions and do not have to explain the same point a number of times – all of which saves you money.

Documents are king

The UAE is a civil law jurisdiction. Civil law jurisdictions place far greater reliance on what can be proven by the documents than jurisdictions such as England, the USA or other common law countries where oral witness evidence is favoured. 

This means it is essential that you pay very close attention to the documents that are exchanged with the other side in the lead up to a dispute. It also means it is very important that you locate and save all relevant documents that have been created by the individuals involved. This includes all correspondence (including letters, emails, text messages, BBM messages, iPhone messages etc.), meeting notes (both internal and external), photographic evidence, and any documents you may be able to get from the other side (it is likely to be easier to obtain this before the dispute becomes more advanced). If the dispute relates to something physical, get photos and video evidence if possible.  Consider appointing one person within your business to manage and collate the documents and evidence.

Do not touch

It may be the case that you are aware that critical evidence is held on a particular computer – maybe the work computer of a former employee involved in the dispute, you may suspect some evidence has been deleted. If this is the case, do not try to find it yourself. It is incredibly difficult to permanently delete data from a computer but if it has been deleted, everything you do, even turning the computer on, may reduce the chance of being able to recover the data. It is possible to use forensic methods to access the data without having any impact on the evidence and preserving it in a way that is persuasive before a Court or Arbitral Tribunal. We have acted on many cases where we have been able to source very important evidence through forensic examination of computers.

Beware of without prejudice

Without prejudice correspondence is a common means to attempt to resolve a dispute in other jurisdictions. The basic principle is that if you mark a document as being without prejudice you can make concessions in that document for the purpose of seeking a resolution, and the other side will not be able to use those concessions against you in a court or arbitral tribunal. The principle of without prejudice does not have the same standing in the UAE. Be careful not to write anything in correspondence to the other side that you would not want to see produced in a court. We have even known some businesses to try and trick an unwary opponent by writing a without prejudice letter (which is not detrimental to their position) in the hope that the other side will respond with full and frank offer in the interests of resolving the dispute. They can then use that correspondence to support their case by labelling it an admission of liability.

Get statements while you can

It is important to gather as much evidence as you can as quickly as you can. Getting initial witness statements in the early stages of a dispute is advisable for a number of reasons. Expatriate workers tend to stay in the UAE for limited periods of time. Get their evidence while you can and keep their contact details. If they are important to your dispute make sure (if possible) that when they leave your business they depart on good terms, in case you need to ask for their help in the future. It is also an unfortunate reality that key witnesses can pass away and at least if you have a witness statement you will have some evidence to put forward from them, albeit that evidence may not carry the weight of a witness that has been cross-examined. 

We should point out here that when we refer to witness evidence being used, this would generally be in the context of arbitration (an alternative form of dispute resolution carried on outside the court system) as the UAE courts do not rely on witness evidence as a rule. Notwithstanding this, it will assist internal understanding of the dispute and for this reason we recommend you do take preliminary statements from all parties involved, even if the dispute will be before the courts of the UAE.

One potential exception to this advice is in circumstances where the other side has, or you believe they intend to, make a criminal complaint. If the prosecutor does choose to prosecute a case against you, the police may potentially seize documents from your premises. In these circumstances you do not necessarily want to have created potentially incriminating evidence that may be ultimately used against your business. So you get your lawyers in early to deal with these aspects.

Don't forget about that performance guarantee or cheque you agreed to at the beginning of the contract

It is a common feature of commercial contracts in the UAE that one party will require the other to provide an on demand bank guarantee or alternatively an undated cheque either for a specific sum or unilateral even that. If your business has done this, you may have entered into a contract which sets down conditions under which the guarantee can be called or the cheque can be cashed. In the event of a dispute this will not necessarily protect you.  We have dealt with many cases where one party has used a guarantee or cheque as a negotiating tactic. 

The position in relation to cheques is potentially even more serious, as traditionally the courts do not pay heed to the terms of any agreement governing when a cheque may be cashed. Dishonouring a cheque is a criminal offence in the UAE. The signatory on the cheque is likely to be imprisoned, usually until the sums to honour the cheque are deposited into court.

In the event that you have provided a performance guarantee and the other side is threatening to call it without justification, all is not lost. It is possible to apply to court on an urgent basis to have the bank guarantee attached, so that the funds are not released to the other side. We have done this successfully in the past, but the chances of success depend on the particular circumstances and such action can be costly and can lead to full blown litigation on this aspect of the case.

The risks of termination

Your contract may give you the right to terminate on notice. Be very careful before exercising this option and always seek advice before doing so. Just because you have a termination for convenience clause in your contract does not mean that your termination will have legal effect. Further, terminating may have undesirable consequences including severely limiting the financial recovery you are ultimately able to make.

Have a clear informed negotiation strategy

Avoid entering into "tit for tat" correspondence with the other side. If there is a procedure in your contract for resolving a dispute, follow it. If the contract requires you to send notice to a particular individual by fax do not correspond to another individual by email. If the other party makes serious allegations about your conduct, you may need to respond, but an response should only deal with the key issues and avoid any irrelevant or extraneous points that will only lead to a "war of correspondence".

Always check the documents you are signing

If someone arrives at your office and requests that you sign for a document, or if a court bailiff attempts to serve a court document on you, always make sure that you read it, before signing for it. If it is in a language that you do not understand, always get somebody who does understand to read it. This is especially important with the service of court documents. We have been involved in cases where service of a proceeding was deemed to have been made on an overseas company when it was unwittingly signed for by the overseas company's local distributor. Train your reception staff to be aware of these issues.

And finally…

Instruct lawyers as early in the dispute as possible. We know from our experience the sooner lawyers get involved in a dispute the better position our client will be in. The earlier you get advice on both the strengths and weaknesses of your position, the more likely you are able to resolve the issue without the costs of court proceedings or arbitration, both of which can be expensive. You will also be more likely to re-establish your relationship with the other side, hopefully on a more profitable basis than before. This will not always be the case and sometimes litigation is inevitable. However, getting the best advice from the beginning will without fail put you in a better position going forward.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions