The legal landscape governing execution proceedings in the Emirate of Dubai has undergone a significant development with the introduction of Law No. (16) of 2025 concerning claims involving government entities. This legislative amendment introduces an important procedural safeguard affecting the accrual of legal interest in execution matters, particularly where there is a delay in initiating enforcement proceedings.
Overview of the Legal Provision
Pursuant to Law No. (16) of 2025, the legislator has addressed a recurring issue in execution proceedings namely, the continued accrual of legal interest despite delays attributable to the judgment creditor. The law specifically applies to judgments issued against government entities in Dubai, including final judgments, binding decisions, and enforceable instruments.
The law establishes that where a party obtains:
- A final judgment, or
- A binding (res judicata) decision, or
- Any enforceable instrument,
but fails to initiate execution proceedings within sixty (60) days, certain legal consequences arise in relation to the calculation of legal interest.
Key Legal Principle: Suspension of Legal Interest
The central rule introduced by the law is as follows:
If the judgment creditor delays filing an execution application beyond sixty (60) days from:
- The date of issuance of the final judgment, or
- The date the judgment becomes final and binding, or
- The date the enforceable instrument acquires executory force,
then the accrual of legal interest is suspended.
This suspension applies for the entire period starting from the expiry of the 60-day deadline until the actual date of filing the execution application.
Practical Implications
This provision has several important implications for litigants and legal practitioners:
The law incentivizes judgment creditors to act promptly in pursuing execution. Delays beyond the prescribed 60-day period result in a direct financial consequence loss of accrued legal interest for the delayed period.
The calculation of legal interest must now exclude any period between:
- The lapse of 60 days from the relevant judgment date, and
- The date on which execution proceedings are formally initiated.
Legal Interpretation and Policy Considerations
This legislative approach reflects a broader policy objective of balancing fairness between judgment creditors and government entities. While creditors are entitled to compensation through legal interest, such entitlement is conditioned upon diligence in enforcing their rights.
The provision also aligns with principles of procedural efficiency, discouraging unnecessary delays and promoting expeditious enforcement of judicial decisions.
Conclusion
Law No. (16) of 2025 introduces a critical procedural rule in Dubai’s execution framework by linking the accrual of legal interest to the timely initiation of enforcement proceedings.
From a practical standpoint, this amendment underscores the importance of swift post-judgment action. Failure to initiate execution within the prescribed 60-day period results in the temporary suspension of legal interest, thereby reducing the overall recoverable amount.
If you require further clarification or legal assistance concerning the matters discussed in this article, please do not hesitate to contact Khairallah Advocates & Legal Consultants LLC. Our lawyers would be happy to assist you.
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