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Ali Saeed Al Shamsi

Corporate & Contract Law

Buying a Disputed Right in the UAE: Restrictions and Invalidity

Buying a Disputed Right in the UAE: Restrictions and Invalidity

The new law regulates the sale of disputed rights and imposes restrictions on specified persons to protect judicial integrity. A right may be disputed where litigation exists or there is a serious dispute.

Review the claim file, underlying right, parties, buyer’s position and connection to the proceedings. Specific restrictions concern judges, prosecutors, court staff and a lawyer acting in the same right, within the scope of the applicable provisions.

Do not assume that every transfer of a disputed debt is invalid or that a private assignment bypasses these restrictions. Examine the exact statutory conditions and effectiveness against the debtor and third parties.

Federal Decree-Law No. 25 of 2025 entered into force on 1 June 2026. Check the dates, applicable special legislation and temporal rules for the particular case.

Official sources

Civil Transactions Law | Official explanation of the reforms

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