Dubai Court Dismisses Dh10.8M Embezzlement Claim! ⚖️

A Dubai court has cleared two men accused of embezzling Dh10.8 million in a high-profile restaurant investment dispute. The case arose from funds transferred to secure a 50% stake in a Dubai restaurant under a Memorandum of Understanding (MoU) signed in May 2019.

The court ruled that the transfers were part of a commercial agreement, not a legally recognized “contract of trust,” meaning the case falls under civil law, not criminal embezzlement.

Legal experts emphasize that the ruling highlights a key UAE principle: failing to meet contractual obligations alone does not constitute a criminal offense. Investors are advised to structure agreements carefully, with clear responsibilities and safeguard clauses, to allow for potential criminal action in cases of misappropriation.

This verdict clarifies the line between civil and criminal liability in investment disputes, offering guidance for companies and investors handling large-scale commercial deals in Dubai.

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