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Find out moreWe are excited to share the latest edition of the Law Update, beautifully and appropriately titled “Sustainable Horizons: The Saudi Arabian Vision.” Giving special honor to the Kingdom’s 2030 vision, this update focuses on a collection of both informative and inspiring articles.
For those in construction, you can learn about how the tendering environment impacts risk-pricing for contractors, the updates on the legal framework of the construction industry and how contractors can protect themselves against financial difficulties.
There is good news too from the kingdom’s banking sector, from which the practice of “Open Banking” is being pushed for! But what is open banking? We’re answering that too.
Also . . . Are there any women trail blazers in Saudi Arabia you can name? We’ll help you with that. We cover how the Middle East has been making strides in empowering women in the entrepreneurial space,most notably in STEM fields.
Read the full editionOn 13 September 2022, the Head of International Cooperation Department in the UAE Ministry of Justice (“MOJ”) issued a letter (“MOJ Letter”) to advise the Dubai Courts that pursuant to Lenkor Energy Trading DMCC v Puri (2020) EWHC 75 (QB) (Lenkor), the UK Supreme Court decided to enforce a judgment issued by Dubai Courts and accordingly such judgment constitutes a precedent that binds all English Courts according to the English legal system.
The MOJ therefore seeks, in its letter, from Dubai Courts that this to be taken into account when considering applications seeking to enforce judgments and orders that are issued by English Courts in order to enhance the application of reciprocity principle between the UAE Courts and the English Courts. The MOJ further concludes that the reciprocity principle between the UAE Courts and the English Courts has now been adopted by the English Courts in light of the UK Supreme Court judgment referenced above.
The reciprocity is a pre-condition that the UAE Courts, pursuant to Article 85 of the Executive Regulation of the UAE Civil Procedures Law, shall verify and acknowledge between the UAE judgments and any foreign judgment sought to be enforced in the UAE before an enforcement order is granted. In practice, the substantiation of reciprocity condition between the UAE Courts and the English Courts has been always a challenge. As such, the Dubai onshore Courts have concluded in many cases that no evidence has been adduced to substantiate the reciprocity condition between the UAE judgments and English Judgment.
It is therefore our view that the MOJ letter dated 13 September is a well positive and advanced step in favour of the enforcement of English judgments by the UAE onshore courts and specifically Dubai Courts. However, the MOJ letter (and its analysis of law) does not legally bind the UAE Courts which may still require the applicants seeking to enforce English judgments in the UAE to submit the necessary evidence which proves that the reciprocity is established between the UAE judgments and English judgments. Still, the MOJ Letter. in any event, would bear a persuasive value that would be considered by the UAE Courts and should be seen as a great step in favour of enforcement of English judgments in the UAE.
If you are having any queries related to the New Decree and Statute and their implications, please feel free to contact Naief Yahia or Mosaab Aly.
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