The assets were restored to the debtor’s name to facilitate the recovery of funds.
The Dubai Civil Court of First Instance has ruled that property gifts made by a convicted embezzler to his daughter are not valid against creditors, ordering that the assets be returned to his name to enable recovery of funds.
The court found that the defendant, who had been convicted of embezzling approximately Dh19.2 million from a company he led, transferred ownership of two properties to his daughter in an attempt to shield them from creditors, according to Emarat Al Youm.
The case originated from a criminal complaint in which the former chief executive, along with others, was found guilty of diverting company funds through a fictitious development agreement. A criminal court subsequently sentenced him to 10 years in prison, ordered his deportation, and mandated the repayment of the embezzled funds.
Following the ruling, the affected company obtained a civil judgment exceeding Dh19 million and initiated enforcement proceedings, only to discover that no assets were registered in the defendant’s name.
Investigations later revealed that in 2019, he had transferred a luxury apartment and a residential plot to his daughter through gift contracts without any consideration.
The court held that the timing of the transfers, coupled with the lack of other assets, demonstrated bad faith and an intent to prejudice creditors. It ruled that while the gifts remain valid between the parties, they are not enforceable against the claimant, and ordered the properties to be re-registered to facilitate enforcement of the judgment.
