Doing Business in Abu Dhabi 2021
Enforcing Contracts Questionnaire
1.Case Study Assumptions
Two domestic companies - Seller and Buyer - conclude a contract for the sale of some custom-made goods. Further to such contract, Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, custom-made furniture. Upon delivery of the goods, Buyer alleges that the goods are of inadequate quality, and refuses to pay. Seller insists that the goods are of adequate quality and demands payment of the contract price. Since the goods were custom-made for Buyer, Seller cannot sell them to a third party. Following Buyer's refusal to pay, Seller sues Buyer. The court decides 100% in favor of Seller, and orders Buyer to pay the contract price.
- Both Seller and Buyer are domestic companies, located in Abu Dhabi.
- Seller sues Buyer to recover the amount due under the contract. The value of the claim is: AED 317,386.
- The court deciding the case is located in Abu Dhabi and is the first instance court with jurisdiction over commercial claims of AED 317,386.
- Seller fears that Buyer may dissipate assets, move assets out of the jurisdiction or become insolvent. Therefore, if such a procedure is allowed before the competent court, Seller requests and obtains attachment of Buyer’s movable assets (for example, office equipment or vehicles) prior to obtaining a judgment.
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Buyer opposes the claim, which is then disputed on the merits. An opinion on the quality of the goods delivered by Seller is required and is given by an expert during the court proceedings:
- If it is standard practice in your country for Seller and Buyer to call their own expert witnesses, then each party calls one expert witness to provide an opinion on the quality of the goods delivered by Seller.
- If it is standard practice in your country for the judge to appoint an independent expert to provide an opinion on the quality of the goods delivered by Seller, then the judge does so. It is assumed that no opposing expert testimony is provided.
- Judgment is 100% in favor of Seller. Buyer is required to pay the agreed contract price to Seller.
- Buyer does not appeal the judgment.
- Seller starts enforcing the judgment when the period allocated by law for appeal expires. It is assumed that Buyer has no money in his bank accounts but has sufficient movable assets to fulfill the full debt. As a result, Buyer's movable assets (for example, office equipment or vehicles) are attached and stored in preparation for a public sale.
- A public sale is organized, advertised and held to sell Buyer's movable assets. The assets are sold and the value of the claim is entirely recovered by Seller.
Definitions: for the purpose of this questionnaire, the terms below carry the following meaning:
- Competent court means the court in Abu Dhabi with jurisdiction over commercial disputes similar to the one described in the assumptions of the case. If more than one court is competent, competent court means the court that is most likely to determine the outcome of the standardized case.
- Expert witness means a witness with the required qualifications or experience to give an opinion on whether the goods delivered are of adequate quality. Expert opinion is required and provided prior to judgment.
2. Reform Update
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Answer |
Have there been any reforms since November 1, 2018 in domestic commercial litigation (e.g. amendments to the civil procedural rules or to the case management system, implementation of e-filing, implementation of mediation, substantial changes in arbitration law, creation of a new commercial court, or appointment of new judges or reorganization of the judicial system)? |
Yes, there has been a reform since June 1, 2011. |
If relevant, please describe the reform(s). Please include information on the date of adoption, publication and enforcement of the new law(s) or regulation(s). |
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Are any such reforms expected to be implemented in the next six months? If so, please describe. |
No. |
3. Competent Court
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Answer |
Comments |
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3.1 Does the Abu Dhabi Commercial Court have jurisdiction over the case described in Section 1, given the value of the claim set at AED 317,386? |
Yes |
If you answered “No”,please specify what the new competent court would be: |
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3.2. How many cases similar to the one described in Section 2 before the Abu Dhabi Commercial Court haveyou or your firm handled in 2019? |
11-50 |
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4. Quality of Judicial Processes Index
When answering the questions below kindly indicate the name, reference and date of publication of the relevant law, when applicable.
4.1 Court Structure and Proceedings
Specialized Commercial Court |
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4.1.1. In Abu Dhabi, is there a court, division or bench of a court dedicated solely to hearing commercial cases? |
Answer from 2018: Yes This year: Yes |
4.1.1.1. If yes, what is the name of this court, division or bench? |
Answer: Abu Dhabi Commercial Court |
4.1.1.2. If yes, what is the law/regulation establishing the specialization? Please include a link if possible. |
The Abu Dhabi Commercial Court has been established under the Decision No. 28 of 2019 issued by H.H. Chairman of ADJD concerning the Establishment of Abu Dhabi Commercial Court. The court has the same geographical jurisdiction of Abu Dhabi Court of First Instance and its subsidiaries. |
4.1.1.3. If yes, what is the jurisdictional threshold (minimum claim value) for cases to be heard by this court, division or bench? |
The Abu Dhabi Commercial Court can hear matters up to AED 500,000 |
Small Claims Court and/or Fast-track procedure for small claims |
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4.1.2. In Abu Dhabi, is there a small claims court/division and/or a fast-track procedure for small claims? A small claims court is a court with limited jurisdiction to hear cases with a maximum claim value that is relatively small. These courts usually have relaxed rules of civil procedure, relaxed rules of evidence and are characterized by the use of plain language. A fast-track procedure for small claims is a procedure designed to be quick and relatively uncomplicated for cases with a maximum claim value that is relatively small. |
Answer from 2018: No This year: Yes |
4.1.2.1. If yes, what is the name of this court/division or fast-track procedure? |
A Small Claims Court has been established by the Ministry of Justice to adjudicate minor misdemeanors and civil claims under AED 100,000. The cases referred to this court can be adjudicated within one working day. |
4.1.2.2. If yes, what is the law/regulation establishing such court/division or fast-track procedure? If possible, please include a link to the law. |
The Civil Procedure Law |
4.1.2.3. If small claims are resolved through a stand-alone court or division, do simplified rules of civil procedure apply? Please explain how the rules are simplified. |
N/A |
4.1.2.4. Does this court/division and/or fast-track procedure has general jurisdiction over civil cases? Please answer “No” if jurisdiction is limited to a pre-set list of cases. |
Answer: No Comment: |
4.1.2.5. What type of cases can be heard by this court/division and/or fast-track procedure? |
Answer: (b) Civil and commercial cases Legal basis: |
4.1.2.6. Is there a maximum monetary amount for cases to be heard by this court/division or through this procedure? If yes, please specify the maximum monetary amount. |
Answer: Yes Comment: AED 100,000 |
4.1.2.7. Is self-representation allowed within these proceedings? |
Answer from 2018: n.a. This year: -Click to Select- Comment: N/A |
Pre-Trial Attachment |
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4.1.3. Assuming that the plaintiff has reasons to believe that the defendant may dissipate assets, move assets out of the jurisdiction or become insolvent, would the plaintiff be allowed to request and obtain attachment of the defendant's movable assets (office equipment or vehicles)? |
Answer from 2018: Yes This year: Yes Comment: The Civil Procedure Law (CPL) allows for Precautionary attachment of assets under Article 252. Under Article 252, precautionary attachment order over the real estate or moveable assets of a debtor can be obtained if he fears he will not be able to secure his claim. Further, under Article 252(2), if the creditor holds the cheque or bill of exchange issued by the debtor an attachment order can be granted without needing to show that there is a fear of assets being dissipated. |
Assignment of Cases |
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4.1.4. Are new cases assigned to judges within the Abu Dhabi Commercial Court through an automated system? An automated system is characterized by the use of computers and computer software to assign cases repeatedly without human intervention. |
Answer from 2018: No This year: No Comment: After the case management office evaluates the case, they assign the same to the judges, along with all such particulars as may be required such as case number, type of case etc. |
4.1.4.1. If yes, could in practice a judge or court official alter the assignment of cases generated by the system before cases are distributed to judges? Please explain. |
Answer: -Click to Select- Comment: N/A |
4.1.5. Are new cases assigned randomly to judges within the Abu Dhabi Commercial Court? Random assignment refers to a process of case assignment that is based on clearly defined criteria that do not allow for manipulation, and that is characterized by a lack of predictable pattern that can be guessed in order to anticipate the assignment of cases to judges. |
Answer from 2018: Yes This year: Yes Comment: |
4.1.6. What are the criteria used to assign cases within the Abu Dhabi Commercial Court?
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4.1.7. In practice, can the parties or their counsels influence the appointment of the judge or predict which judge will be assigned to their case with a high level of certainty? |
Answer: No Comment: |
Gender Equality |
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4.1.8. According to the applicable civil procedure law, does a woman's testimony carry the same evidentiary weight in court as a man's in all types of court cases? |
Answer from 2018: Yes This year: Yes Legal basis/ comment: |
4.1.9. If not, in which kind of cases do they not carry the same weight (e.g. commercial, family, etc.)? |
Answer: In personal and family matters the weight of testimony of a woman is 2:1 as opposed to a man. It isimperative to note that this criteria is applicable to cases that involve Muslim individuals. |
4.2 Case Management
Time Standards for Civil Cases, Adjournments and Continuances |
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4.2.1. In Abu Dhabi, are there laws or other regulations setting overall time standards for key court events in a civil case? |
Answer from 2018: Yes This year: Yes Legal basis / comment: |
4.2.1.1. If yes, which of these key events have specific deadlines set by law? Please mention the specific article of the applicable law/regulation and, if possible, include a link to the material. Last round: Filing of the statement of defense; Service of process, Deadline to submit final judgment
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4.2.1.2. If yes, are these time standards respected in more than 50% of the cases? Please specify which ones. |
Answer from 2018: Yes This year: Yes Comment: |
4.2.2. Does the law also regulate the maximum number of adjournments or continuances that can be granted? |
Answer from 2018: No This year: No Legal basis / comment: |
4.2.2.1. Are adjournments limited to unforeseen and exceptional circumstances? Please answer Yes, if the law stipulates what are such unforeseen/exceptional circumstances (e.g. appointment of an expert, attempt to reach settlement) and/or if the law explicitly states what shall not be considered as unforeseen/exceptional reason for adjournment. |
Answer from 2018: No This year: No Legal basis / comment: |
4.2.2.2. If rules on adjournments exist, are they respected in more than 50% of the cases? |
Answer from 2018: n.a. This year: -Click to Select- Comment: N/A |
Performance Measurement Mechanisms |
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4.2.3. Are there publicly available reports about the Abu Dhabi Commercial Court that show the court’s performance and the progress of cases through the court? Please answer No if the information is available for internal monitoring purposes but is not publicly available. |
Answer from 2018: No This year: No Comment: |
4.2.3.1. If yes, which of the following reports are made available online? These reports could be part of an annual report on the judiciary. Time to disposition report (measures the time the court takes to dispose/adjudicate its cases) Clearance rate report (measures the number of cases resolved vs. the number of incoming cases) Age of pending cases report (provides a snapshot of all pending cases according to case-type, case-age, last action held and next action scheduled) Single case progress report (provides a snapshot of the status of one single case) Please provide link, if available: |
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Pre-Trial Conference |
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4.2.4. Is a pre-trial conference part of the case management techniques used before the Abu Dhabi Commercial Court? A pre-trial conference is a meeting presided by the judge and designed to narrow down contentious issues and evidentiary |
Answer from 2018: Yes This year: Yes Legal bass: |
questions before the trial. Its purpose is to discuss the possibility of settlement and to expedite the trial process while discouraging unnecessary pretrial motions or other delay tactics. |
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4.2.4.1. If yes, which issues would be discussed and which actions would take place in such a pre-trial conference? Last round: Scheduling, including time frame for filing motions and other documents with the court; Possibility of settlement or ADR
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4.2.4.2. If yes, for what type of cases is the pre-trial conference used in practice? |
Answer: A pre- trial conference is applicable to all types of cases except in labor cases. |
Electronic Case Management System |
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If an electronic case management system is in place within the Abu Dhabi Commercial Court, please answer the following three questions. 4.2.5. Which of the following actions can judges perform through the electronic system?
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4.2.6. Which of the following actions can lawyers perform through the electronic system?
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4.2.7. Are all the features you selected in questions 4.2.5. and 4.2.6 part of/integrated into the electronic case management system? Please explain Yes. |
4.3 Court Automation
Electronic Filing |
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4.3.1. Can the initial complaint be filed electronically through a dedicated platform within the Abu Dhabi Commercial Court? Please answer No if it can only be filed by e-mail or fax. |
Answer from 2018: No This Year: Yes Comment: An initial complaint can be filed through the Abu Dhabi Commercial Court website. |
4.3.1.1. If yes, when the initial complaint is filed electronically, must a hard copy be submitted as well? |
Answer: No Comment: |
Electronic Service of Process |
4.3.2. Can the initial complaint filed before the Abu Dhabi Commercial Court be served on the defendant electronically? If so, please specify how service is carried out (by e-mail, SMS/text, fax, etc.). |
Answer from 2018: No This Year: Yes Comment: The service can be done electronically through the official portal of Abu Dhabi Judicial Department through web service, by email by fax or by direct integration. |
4.3.2.1. If yes, when the initial complaint is served on the defendant electronically, must a hard copy be delivered as well for the defendant to be deemed duly served? Please explain if there are any additional in-person interactions required to complete service. |
Answer: -Click to Select- Comment: N/A |
Electronic Payment of Court Fees |
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4.3.3. Can court fees be paid electronically within the Abu Dhabi Commercial Court? Please answer Yes also if payment can be made through online banking. |
Answer from 2018: Yes This Year: Yes Comment: |
4.3.3.1. If yes, is a physical interaction with the bank, the court, or the post office required to complete electronic payment? |
Answer: No Comment: |
Publication of Judgments |
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4.3.4. Are judgments rendered at all levels in commercial cases made available to the general public through publication in official gazettes, in newspapers or on the internet/court website? If judgments are published online, please include a link to the relevant website. Please answer No if only selected judgments are published. |
Answer from 2018: No This Year: Yes Comment: Judgments are made available on the court system website. |
4.3.5. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet/court website? If judgments are published online, please include a link to the relevant website. Please answer No if only selected judgments are published. |
Answer from 2018: No This Year: No Comment: |
4.4 Alternative Dispute Resolution
Arbitration |
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4.4.1. In Abu Dhabi, is domestic commercial arbitration governed by a consolidated law or consolidated chapter/section of the applicable code of civil procedure encompassing substantially all its aspects? If "Yes", please indicate the name and year of publication of the law. |
Answer from 2018: Yes This year: Yes Comment: Federal Law Number 6 of 2018. |
4.4.2. Are valid arbitration clauses or agreements usually enforced by the courts in the United Arab Emirates? Please answer No if courts would adjudicate a case despite the presence of a valid arbitration clause or agreement. |
Answer from 2018: Yes This year: Yes Comment: |
4.4.3. Are there any commercial disputes – aside from those that deal with public order or public policy – that cannot be arbitrated in the United Arab Emirates? |
Answer from 2018: No This year: No Comment: |
Voluntary Mediation / Conciliation |
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4.4.4. Is voluntary mediation/conciliation available in Abu Dhabi? Please answer Yes only if the parties do not have to participate in the process unless they want to. |
Answer from 2018: Yes This year: Yes Comment: |
4.4.5. In Abu Dhabi, is mediation/conciliation governed by a consolidated law or consolidated chapter/section of the applicable code of civil procedure encompassing substantially all aspects of mediation/conciliation (for example, definition, aim and scope of application, designation of mediator/conciliator, initiation of the process, principles governing the process, enforcement)? If Yes, please indicate the name and year of publication of the law. |
Answer from 2018: Yes This year: Yes Comment: Mediation is governed under Federal Law Number 17 of 2016 (the Mediation Centre Law) and Conciliation is governed under Federal Law Number 26 of 1999 (the Conciliation Committee Law). |
4.4.6. Are there financial incentives for parties to attempt mediation/conciliation (i.e. refund of court filing fees, income tax credits, etc.)? |
Answer from 2018: Yes This year: Yes Comment: |
5.Time estimates
In light of your experience with cases comparable to the case study described in Section 1, please indicate the number of calendar days that would usually be necessary in practice to resolve it.
If you updated the competent court in Section 3, please provide time estimates for the new court below.
5.1 Filing and service phase
This section measures the time it would take between the moment Seller (the plaintiff) decides to sue and the moment Buyer (the defendant) is served in the Abu Dhabi Commercial Court (assuming that both parties are domiciled in Abu Dhabi).
Answer |
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5.1.1. Before filing a lawsuit, the Seller tries to obtain payment out of court through a non- litigious demand letter. How long would this process take? In your estimate, please include the time to prepare the letter and the deadline that would be provided to the Buyer to comply. Under the case study described in Section 2, it is assumed that the Buyer will not comply. |
In order to obtain compliance with the seller’s request a legal notice may be sent, to which the buyer is required to reply within a period of 5 days. Depending on the complexity of the matter and the time taken to draft the letter and the deadline provided to the buyer, we may approximately take a maximum of 7 days in total. |
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5.1.2 If mandatory mediation is required before filing a case in court, how long would it take? Under the case study described in Section 1, it is assumed that the parties will not reach an agreement. |
The mediation process, if required, shall depend on the complexity of the case and discretion of the mediator. |
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5.1.3. How long would a lawyer take to write the initial complaint and gather all supporting documents needed for filing (including authenticating them, if required)? |
Depending upon the complexity of the case and volume of documents required to be collected for filing the process can take anywhere between 3 to 7 days. |
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5.1.4. How long would it take to file the initial complaint with the court and serve the defendant? In your estimate, please include the processing time at the court’s registrar and the waiting periods between unsuccessful attempts to serve the claim on the defendant, if more than one attempt is usually required. |
It may take anywhere between 5-7 days to file the initial complaint and serve the defendant. |
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5.1.5. What are the main causes of delay during this phase? Difficulties in locating the defendant for purposes of service Slow service by bailiff, attorney or other Unavailability of attorney Inefficient postal service Obtaining information from registrar's office (date of hearing, pre-assessment of the complaint, etc.) |
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Other, please explain |
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Answer from 2018 |
This year |
Comment |
5.1.6. In light of the above, is the 2018 estimate for the entire "filing and service" phase still accurate? |
21 calendar days |
Yes |
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5.2 Trial and judgment phase
This section measures the time from the moment the defendant is served until the time to appeal has elapsed.
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Answer |
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5.2.1. How long does it take, in practice, between the moment the summons is served on Buyer (the defendant) and the moment a pre-trial conference is held? If pre-trial conferences do not take place in your country, please proceed to the next question. |
The whole process right from service of summons to the pre-trial conference mainly depends on the processing of the case with the case management office, however, we may take an approximate period of 30 days as a basis for this evaluation. |
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5.2.2. How long does it take, in practice, between the moment the case is served and the moment the first trial hearing is held? |
To reiterate, the case may take time to be processed, but for the sake of this evaluation, approximately 15 days |
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5.2.3. How many hearings would be required, in practice, to resolve the standardized case study? |
Depends on the discretion of the judge. |
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5.2.4. When a hearing is postponed, or when more than one hearing would be necessary to resolve the case, how long would the parties have to wait for the next hearing? |
Depends on the date of adjournment or hearing set by the judge. |
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5.2.5. How long would an expert usually take in practice to deliver his/her opinion? |
The expert may take a reasonable amount of time to render their opinion as per the subject matter of the case. |
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5.2.6. How long would the judge take, in practice, to issue a written final judgment once the evidence period has closed? |
As per the law, there are no specific deadlines that are stipulated for a judge to issue a final judgment once the evidence is closed, once the judge is satisfied with all the evidence he may, as per his discretion set a date for judgment. |
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5.2.7. What is the time limit for appeal in the United Arab Emirates? |
The time limit to appeal in a regular case is 30 days. In case of urgent matter the process may be expedited to 10 days. |
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5.2.8. What are the main causes of delay during this phase? Backlog of cases
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Answer from 2018 |
This year |
Comment |
5.2.9. In light of the above, is the 2018 estimate for the entire "trial and judgment" phase still accurate? |
90 calendar days |
Yes |
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5.3 Enforcement of judgment phase
This section measures the time it would take the plaintiff, once the appeal period has elapsed, to: (i) start enforcing the judgment; (ii) seize defendant's movable assets; (iii) organize a public sale of the seized assets; and (iv) recover the value of the claim.
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Answer |
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5.3.1. How long does it take, in practice, to obtain an enforceable copy of the judgment and contact the relevant enforcement officer? |
Approximately 2 to 3 days. |
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5.3.2. How long does it take, in practice, to locate, identify and seize the losing party’s movable assets (including the time necessary to obtain an order from the court to attach and seize the assets)? |
The location, identification and seizure of movable assets of the losing party depends on the discretion and time taken by the investigator to evaluate the circumstances and come to a conclusion thereof. |
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5.3.3. How long does it take, in practice, to advertise, organize and hold the public sale of the losing party’s movable assets? |
Approximately 15 days |
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5.3.4. If in practice more than one auction would be necessary to recover the value of the claim, how many days would pass between auctions? |
An auction typically goes on for a period of 5 days, if in case the auction is not completed, a period of 3 months are required to elapse for the next session to commence. |
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5.3.5. Once the auction is completed, how long will it take the winning party to recover the value of the claim? |
Once the auction is complete, the time period required to recover value of claim solely depends on the court procedure. |
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5.3.6. What are the main causes of delay during this phase? Attaching the movable assets Organizing the public auction Waiting for the public sale to be held Finding buyers for the goods Other, please explain |
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Answer from 2018 |
This year |
Comment |
5.3.7. In light of the above, is the 2018 estimate for the entire "enforcement" phase still accurate? |
90 calendar days |
Yes |
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6. Cost estimates
- Reminder – Value of the claim for Doing Business in Abu Dhabi 2021: AED 317,386.
- Indicate all costs and expenses Seller (the plaintiff) must advance, regardless of the costs that Seller can recover at the end, when (s)he wins the case. Please include official costs only.
oIf the competent court in Section 3 has changed, please list the fees that would apply in the new court.
6.1 Attorney fees
Please provide an estimate of the average attorney fees that would be charged by a local law firm to handle a case like the standardized scenario, taking into account the qualification and experience of the attorney required in your country for this case. Please include the fees to handle the case up to judgment; the fees for enforcement if a lawyer is commonly retained for this purpose; and, if applicable, value added tax or other taxes.
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Answer from 2018 |
This Year |
Comment |
6.1.1. Is the 2018 estimate still accurate? |
10.0% of claim value |
-Click to Select- |
Attorney fees generally depend upon the scope of work and the total claim amount concerned. |
6.2 Court fees (up to judgment only) and expert fees
Please provide the approximate average cost that would be incurred by Seller (the plaintiff), bearing in mind the competent court for the standardized case.
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Answer |
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I. Fees to register the case (filing fees only) |
5% of the claim amount with a cap of AED 40,000 |
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II. Fees for the pre-trial attachment |
AED 750 |
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III. Fees for the issuance of the judgment |
N/A |
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IV. Other court fees that would need to be advanced by Seller (please specify) |
N/A |
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V. Fees charged by a local expert if he/she had to work for 10 hours to deliver an opinion on the quality of the furniture. If such fees are regulated by a fee schedule, please include a link. |
Expert fees shall be determined by the court. |
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Answer from 2018 |
This Year |
Comment |
6.2.1. In light of the above, is the 2018 estimate of court fees and expert fees still accurate? |
5.3% of claim value |
No |
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6.3 Enforcement fees
Please provide the approximate average cost that would be advanced by Seller (the plaintiff) for a case similar to the standardized case.
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Comment |
I. Fees to register the judgment |
AED 100 |
II. Fees for the pre-trial attachment or attachment order, as applicable |
AED 750 |
III. What are the fees for the auction (publicity, tax, enforcement officer, etc.)? Please explain. |
N/A |
IV. Would Seller have to advance the fees for the organization of the public auction (publicity, tax, enforcement officer, etc.)? Please answer No if the enforcement officer is paid out of the proceeds of the public sale. |
No. |
V. Other enforcement fees that would need to be advanced by Seller (seizure of goods, advertisement, storage, etc.) (please specify) |
N/A |
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Answer from 2018 |
This Year |
Comment |
6.3.1. In light of the above, is the 2018 estimate still accurate? |
2.2% of claim value |
No |
2% of Claim value with a cap of AED 3000 |
Thank you very much for completing the Enforcing Contracts questionnaire.
We sincerely appreciate your contribution to the Doing Business in Abu Dhabi 2021 World Bank study.
"Originally published by the World Bank Group in its 'Doing Business in Abu Dhabi 2021' study"