United Arab Emirates

The UAE traffic laws are governed by Federal Decree Law No. 14 of 2024 on Traffic Regulation (“Law”). This Law lays down extensive provisions regarding the usage of public roads, the proper conduct of drivers of vehicles, requirements when applying for a driver’s license, and other traffic related requirements. Apart from this, the Law governs vehicle ownership, the responsibilities of the owner of a vehicle, and the format in which the ownership may be transferred to another person. How to identify the owner of a vehicle? The owner of a vehicle is the person whose name is on the license of the vehicle. Every vehicle will have an official document issued by the licensing authority, which will contain details about the vehicle, including the ownership of the vehicle, the official insurer of the vehicle, the validity dates of the license, and other relevant information specific to a vehicle. The person whose name is contained in this license will be considered the owner of the vehicle. Transfer of ownership Under the Law, Article 22 talks about transfer of ownership of a vehicle. The law states that if the ownership of a vehicle is to be transferred, either as part of a sale or due to another reason, such transfer must be mandatorily registered with the licensing authority. Liabilities of an owner after transfer of ownership Article 22 further states that the owner of the vehicle will remain liable for the obligations arising from the use of the vehicle until the Vehicle License is registered in the name of the new owner in accordance with the procedures followed by the licensing authority. Therefore, in instances where physical transfer of the vehicle has been carried out and the future owner of the vehicle commits a traffic crime while using the vehicle, the previous owner will continue to be liable for such offenses, unless the transfer of ownership is registered with the competent authority. Obligations of a vehicle owner Obligation to renew vehicle registration Vehicle registration renewal must be carried out annually. Vehicle owners get a grace period of 30 days after their vehicle registration expires every year. If you apply for the renewal after the allotted flexible period, an additional fee will be charged. The following documents are required for vehicle registration renewal: Emirates ID Valid Driving License Renewed Vehicle Insurance Policy Vehicle Registration Card, also known as Mulkiya “Passed Certificate” from an assigned RTA testing facility. Obligation to approve vehicle modifications The vehicle owner must ensure that no substantial modifications are to be made to the vehicle shape, (chassis), body, engine power or color except with the approval of the licensing authority in accordance with the law. The licensing authority will inspect and approve the modifications before the vehicle can be used. Obligation after vehicle recall and re-inspection The licensing authority has the right to recall any vehicle for re-inspection. Furthermore, the traffic control authority may also refer a vehicle for re-inspection, to the licensing authority, if it deems that the vehicle is a risk to traffic safety. In such cases, if an inspection raises problems and shows that the vehicle is not roadworthy, the licensing authority may inform the vehicle owner not to use the vehicle. However, the authority is required to provide a statement of the deficiencies and defects in the vehicle. The vehicle owner may begin to use the vehicle once these deficiencies have been addressed, and the vehicle undergoes a successful re-inspection. The Vehicle Owner has the right to appeal the Inspection result to the licensing authority within (10) ten days, and its decision issued in this regard shall be final Exemption from Vehicle License Renewal Fees As per Article 24, if a vehicle owner does not wish to use the vehicle, he can request to cancel the Vehicle License and handover the license plate as prescribed. Consequently, he will be exempt from the Vehicle License Renewal Fees. Conclusion Vehicle ownership is often seen as an integral requirement in the UAE. However, individuals are often unaware of the responsibilities that arise when owning a vehicle in the UAE. The UAE law not only lays down obligations for car owners, but also imposes fines if these obligations are not met. Therefore, it is extremely important to be aware of these liabilities and fulfil them in accordance with the UAE law. Dr. Hassan Elhais

The Dubai public prosecution has launched an initiative to improve the dispute resolution process in the Emirate. The “Reconciliation is Better” initiative has been introduced in order to promote the resolution of disputes through amicable ways. This initiative provides a straightforward and practical alternative to traditional legal proceedings that can be time consuming and expensive. Furthermore, it promotes agreement and a way forward, promoting a culture of tolerance and social harmony, which are central to Dubai’s leadership vision of a cohesive society. The “Reconciliation is Better” initiative aligns with international best practices, while also being in line with Dubai’s leadership vision of a cohesive society. It also aims to establish a global benchmark for judicial excellence and support the objectives of the Dubai Plan 2030. The initiative allows prosecutors to guide disputing parties towards fair and lawful settlements, reducing the reliance on lengthy legal proceedings. This will also reduce the burden on the courts and conserve resources, significantly reducing legal costs. The principle of reconciliation is not a new concept under UAE Criminal Law. The UAE Penal Code under Federal Law by Decree No. 31 of 2021 Promulgating the Crimes and Penalties Law, allows reconciliation under certain instances. Article 84 of the Law states that in cases involving misdemeanors, theft, fraud, breach of trust, and concealment of objects obtained from these acts, if the victim of the crime is a family member of the offender, the Public Prosecution may stay the execution of imprisonment, provided that the victim waives or reconciles with the convicted offender. Thus, reconciliation is allowed under the UAE penal code in the following instances: In certain crimes where the offender is a family member of the victim, and the victim waives or reconciles with the offender When a person who is in charge of a child, refrains from giving up the child to the person who is entitled to claim him by virtue of a final decision or judgment issued by the judicial authority If a parent or a grandparent abducts a minor child or grandchild, personally or through an intermediary, even without deception or coercion, or refuses to return or deliver the minor child, to the person who is entitled to his custody or care in accordance with a final decision or judgment issued by the judicial authority. If a person refuses to pay alimony/maintenance to his spouse, relative, or legal dependents as ordered by the court, or if a person refuses to pay child support, breastfeeding allowance or residence allowance, provided that he is capable of paying the said amount, and has refrained from paying the amount for a period of three months, after being warned to pay. If a person physically assaults another person, and the assault leads to a disease or the inability to carry on his personal activities for more than twenty days. If a person defames a person through any means of publicity, and the defamation could have led to punishment, public hate or contempt towards the victim. If a person causes slander to another person without attributing a particular incident, through publicity, in a way that it violates the victim’s honour or dignity. If a person causes slander or defamation on the telephone or directly against the victim in the presence of others. If a person uses a car, a motorcycle or any similar vehicle, without the authorization or consent of its owner or the person who is entitled to make use thereof. If a family member commits a theft, fraud, breach of trust, and conceals the objects from the crime. Reconciliation can be a powerful tool in certain criminal cases as it can offer a pathway to accountability, healing, and restoration that may not be possible in the traditional punitive legal approaches. It allows dialogue between the offender and the victim, fostering understanding and agreement. Although it may not be possible in all types of crime, it is certainly useful in small crimes, especially involving family members. The “Reconciliation is better” initiative was launched in April but it is already being applied to cases in Dubai. This reflects the Dubai prosecution’s dedication to establishing a global benchmark for judicial excellence. Dr. Hassan Elhais

Introduction: In the UAE, disputes can be settled by two different methods. This method includes traditional court litigation and alternative dispute resolution (ADR) methods, such as arbitration and mediation. Each dispute resolution method has its benefits and challenges based on the dispute's nature, the claim amount, and the desired outcome. To resolve the legal disputes in the UAE, litigation remained the most popular choice. But recently alternative dispute resolution methods have become more popular due to the increased focus on flexibility and efficiency. Additionally, alternative dispute resolution methods can offer cost-effective and time-saving benefits under the right circumstances. Litigation is a traditional dispute resolution procedure based on the UAE court system. The plaintiff may initiate it by submitting a statement of claim that details both parties' information, subject matter, and grounds for the legal dispute. The court then notifies the defendant and they may respond within a specified timeframe. Both parties present their evidence and arguments during hearings, after which the court issues a judgment. There are three levels of the court system in the UAE. These levels include the courts of first instance, courts of appeal, and courts of cassation. The well-structured court system in the UAE aims to ensure a fair and efficient resolution of disputes through this structured process. Arbitration is a popular alternative dispute settlement procedure in the UAE. UAE arbitration law and regulations provide clear rules on how arbitration works. And parties may have the option to resolve disputes outside of the courts. Due to its quick resolution and confidentiality, arbitration is preferred by commercial disputes. Many multinational companies operating in the UAE commonly choose arbitration over traditional court proceedings. The arbitration proceedings in the UAE are regulated by the federal law No. (6) of 2018 on Arbitration. Dubai International Arbitration Centre (DIAC), and the Abu Dhabi International Arbitration Centre (arbitrateAD) are the important arbitration institutions in the UAE. When parties decided to choose arbitration as dispute resolution, they must either include an arbitration clause in their contracts or agree to arbitration when a dispute occurs. The arbitration clauses should be included to avoid long court battles. Under this clause, parties may have to choose the number of arbitrators, the seat of arbitration, the language to be used in the arbitration and the governing law of the contract. Compared to court proceedings, the arbitration proceedings are confidential and which makes it perfect for businesses. Furthermore, the parties may have the option of appointing arbitrators with industry knowledge. Another alternative dispute resolution method is mediation. This method focuses on amicable resolution through negotiation between disputing parties, as guided by a natural third-party mediator. Mediation can also decrease cost and time, as well as preserve business relationships, confidentiality, and flexibility in process and results. The Dubai International Financial Centre (DIFC) Dispute Resolution Authority and the Dubai Chamber of Commerce and Industry are the important mediation centres. If parties wish to include a mediation clause in contracts or enter into a mediation agreement after a dispute arises, they may be permitted to discuss and participate in mediation as dispute resolution. Choosing the most appropriate dispute resolution method depends on several factors, such as the nature of the dispute, parties involved, costs, time, and the desired outcome. Conclusion: Deciding between arbitration and litigation depends on the priorities and the nature of the case. If you are looking for a cost-effective, quick and confidential resolution, arbitration may be the better choice. If you are focusing on legal enforcement and the right to appeal, then litigation might be more advisable. Author: Dr. Hassan Elhais

Introduction: In the UAE, the common law legal principle of without prejudice is usually not applied in onshore courts. This legal concept, which is found in many legal systems, ensures that statements made during settlement discussions cannot be used as evidence in court if the negotiations fail. Further, it allows parties to discuss settlements freely without fear of their words being used against them later. Despite this, recent court decisions stipulate the possibility of a change in the legal system of the UAE. Meaning of “Without Prejudice” When a letter or discussion is marked without prejudice, it means the statements made cannot be presented as evidence in a dispute. This helps parties negotiate openly to resolve conflicts without legal risk. The term without prejudice communications is commonly used in contract negotiations, employment disputes and settlement discussions in civil and commercial cases. Following this principle ensures that if a settlement may not be reached, the discussions remain confidential and cannot be used in court. However, there are some limitations to applying this principle. The protection does not apply in all situations. If a statement includes fraud, threats, or illegal activity, it can be used as evidence. Furthermore, once an agreement is reached, the final settlement is legally binding. Background the case According to recent court decisions, the Dubai Court of Cassation Case No. 486/2024 brought attention to this subject. The claimant initiated a case in the Dubai Court of First Instance based on an agreement to purchase cryptocurrencies. The claimant stated that the agreed-upon amount of bitcoin had not been transferred after payment and sought reimbursement, along with interest. The Dubai Court of First Instance rejected the majority of the claim and only granted a minor portion of the total amount sought. As a result, the claimant filed an appeal with the Court of Appeal, claiming that the Court of First Instance omitted the details of WhatsApp contacts between the parties during settlement discussions in which the defendant agreed to owing the claimed amount. The Court of Appeal decided that statements made during amicable settlement discussions are not evidence of responsibility since they are given "without prejudice" and are protected from being used as evidence of liability. In this case, the Dubai Cassation Court ruled that statements made during unsuccessful settlement negotiations were inadmissible as evidence. The Dubai Cassation Court decision adheres to the common law principles of without prejudice and changes significantly from the common practice of UAE mainland courts. While this ruling is a positive step, it is important to note that UAE courts do not follow a system of binding judicial precedent. Therefore, until the principle of without prejudice concept is fully formalized in UAE law, parties should exercise caution during settlement negotiations. Conclusion: The common law principles of without prejudice in UAE law support fair settlement negotiations between the parties. It permits parties to try to settle problems without fear of legal consequences. Understanding its use and limits can help individuals and businesses handle legal matters wisely. Author: Dr. Hassan Elhais