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ARTICLE · 16 MARCH 2026

Cheque Execution In The UAE: Legal Position And Practical Enforcement

Sohaibani & Partners
Sohaibani & Partners
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Sohaibani & Partners

Sohaibani & Partners

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Under UAE law, a cheque is recognised as a commercial instrument. It constitutes a written order issued by the account holder (the drawer) instructing a bank to pay a specific sum of money to a named beneficiary or to the bearer.

United Arab EmiratesFinance and Banking
Deniz Kozakci Al Sohabani
Deniz Kozakci Al Sohabani
Rama Alkhatib
Rama Alkhatib

Understanding the Legal Nature of a Cheque in the UAE

Under UAE law, a cheque is recognised as a commercial instrument. It constitutes a written order issued by the account holder (the drawer) instructing a bank to pay a specific sum of money to a named beneficiary or to the bearer. The legal framework governing cheques is set out in Federal Decree-Law No. 50 of 2022 on Commercial Transactions, which introduced significant reforms to cheque enforcement procedures.

Legal Nature of a Cheque

A cheque is a commercial paper containing an unconditional instruction from the drawer to the bank to pay a stated amount on demand. Unlike credit instruments, a cheque is intended to function as an immediate payment tool rather than a means of deferred payment.

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