The Implication Of Imposing Interest In The UAE

In the current world, where trade ties are vital in strengthening the economy of a country, it is often necessary to enter into legal contracts with various entities around the world. It is also necessary that these contracts are based on agreements and policies common to all, so as to secure the interests of all parties.

A common aspect in trading and contracts is the question of default of agreements and how such defaults can be remedied. As the legal system in the United Arab Emirates is based on Sharia (Islamic Law), questions often arise on the imposition of interest on commercial settlements and Arbitration orders and whether the same can be enforced in the UAE.

RIBA AND INTEREST