Dubai Civil Court Orders Man to Repay Dh2 Million Loan After IOU Dispute

Dubai Civil Court Orders Man to Repay Dh2 Million Loan After IOU Dispute

Judge upholds signed IOU as binding proof, rejects borrower’s claim of smaller loan and dismisses separate damages demand.

AuthorStaff WriterOct 8, 2025, 5:59 AM

The Dubai Civil Court has directed an Arab man to repay Dh2 million to a friend who had lent him the amount, dismissing his claim that the loan was only Dh1 million and rejecting allegations of unlawful interest.

 

According to court documents, the plaintiff lent the money in December 2024 under a written IOU (I owe you) in which the defendant agreed to return the full amount within three months. Despite repeated reminders, the borrower failed to repay, prompting the lender to file a lawsuit seeking recovery of the principal amount along with Dh500,000 in damages for lost investment opportunities.

 

In his defence, the man acknowledged borrowing money but maintained that the actual amount was Dh1 million, of which he had already repaid Dh100,000. He contended that the contract was invalid because the lender was attempting to impose prohibited interest and presented WhatsApp messages as evidence.

 

The court rejected these arguments, ruling that the IOU served as conclusive proof of the debt under UAE evidence law. The judge noted that since the defendant did not dispute his signature on the document, the loan agreement was legally binding.

 

The court ordered repayment of the full Dh2 million along with 5 per cent annual interest from the date the lawsuit was filed until the debt is fully settled. However, the judge dismissed the lender’s claim for Dh500,000 in damages, citing a lack of proof of financial loss.

 

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