UAE Court Dismisses Dh220,000 ‘Loan’ Claim After Man Fails to Prove Debt

A recent judgment in Al Ain has underscored a fundamental principle of UAE law: anyone filing a claim must provide clear evidence to support it. This was highlighted when the Court of First Instance dismissed a lawsuit filed by a man who alleged that his longtime friend owed him Dh220,000.

The claimant told the court that he had transferred the amount to the defendant over a period of time as a personal loan meant to help him through financial difficulties. Despite repeated requests for repayment, he claimed the defendant refused to return the money, and he submitted bank transfer receipts as proof of the alleged loan.

The defendant, however, denied that the transfers constituted a loan and maintained that he was under no contractual obligation to repay any amount.

After reviewing the evidence, the court found that the plaintiff had not demonstrated that the money was given as a loan. Under UAE civil law, the burden of proof rests with the claimant --particularly when the alleged debtor denies any liability.

Consequently, the court dismissed the case in full and ordered the plaintiff to cover all legal fees and court costs. The ruling serves as a reminder of the importance of proper documentation and clear agreements when transferring money between individuals, even among friends.

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