Executive Summary
- The Commercial Bank of Dubai PSC and associated claimants seek to recover debts exceeding £80 million from the Al Sari family and their controlled companies.
- The Al Sari Defendants allegedly employed a dishonest scheme involving sham tenancy and debt documents ("Globe Documents") to shield valuable London properties ("Bridge Properties") from enforcement.
- The UK High Court found the Globe Documents to be fabricated, backdated, and created to harm the claimants.
- The Sharjah Court initially dismissed Globe’s claim based on these documents but later upheld it on appeal; however, the UK court ruled the appeal judgment was obtained by fraud and should not be enforced.
- Defendants largely failed to engage in proceedings, resulting in default judgments and contempt orders, including prison sentences for non-compliance.
Sanctions Highlights
- — No sanctions implications identified in the case.
Emerging Risks
- Use of complex corporate structures across UAE, BVI, and Cayman Islands to obscure asset ownership and frustrate debt recovery.
- Fabrication and backdating of legal documents to mislead courts and creditors.
- Cross-jurisdictional enforcement challenges, particularly between UAE and UK courts.
- Defendants’ non-engagement and contempt of court orders increase litigation risks and enforcement difficulties.
Geopolitical Impact
- The case highlights tensions in legal cooperation between the UAE and UK, with conflicting judgments and enforcement issues.
- UAE-based companies and nationals (Al Sari family and related entities) are central, underscoring the UAE’s role in international commercial disputes.
- The involvement of Jebel Ali Free Zone companies and BVI/Cayman entities reflects the UAE’s position as a regional financial hub with complex corporate governance implications.
- UK courts assert jurisdiction and refuse to enforce UAE judgments obtained by fraud, potentially impacting bilateral legal relations.
Economic Intelligence
- The dispute involves significant assets, including prime London real estate owned via BVI companies.
- The Al Sari Group’s diversified business interests (oil, investments, real estate, manufacturing, retail, insurance, hospitality) suggest broad economic influence.
- The case underscores risks to creditors in cross-border lending and investment in UAE-related entities.
- Enforcement of large judgments (£80m+) is complicated by asset protection schemes and jurisdictional fragmentation.
Strategic Recommendations
- Litigants should conduct thorough due diligence on corporate structures and document authenticity in cross-border disputes involving UAE and UK entities.
- Monitor enforcement proceedings in both jurisdictions for developments affecting asset recovery.
- Consider coordinated legal strategies addressing fraud and sham transactions to overcome jurisdictional barriers.
- Engage with UAE legal experts to navigate local procedural nuances and appeal mechanisms.
- Assess reputational risks for financial institutions involved in lending to complex UAE-related groups.
- Prepare for potential diplomatic or regulatory implications arising from contested enforcement between UAE and UK courts.
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**Source Notes:**
Case Title: *Commercial Bank of Dubai PSC & Ors v Al Sari & Ors [2025] EWHC 1810 (Comm)*
Link: https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1810.txt