The Cheque As An Executory Instrument In UAE Legislation

In Brief:

Recent legislative amendments, including Federal Decree-Law No. (14) of 2020 and Federal Decree-Law No. 50 of 2022, have recognized cheques as enforceable instruments in the UAE, allowing their execution in cases of non-payment due to insufficient or unavailable funds.

• Judicial interpretations in the UAE have diverged on whether the enforceability of cheques extends beyond lack of funds or insufficient balance, with some courts also recognizing account closure as a valid reason for enforcement.
• The Judicial Principles Unification Committee ruled that account closure should be treated similarly to having an insufficient balance or no funds entirely, expanding the conditions under which a cheque is enforceable.