Businesswoman sues uncle over company she says she built with her own funds

Abu Dhabi: A businesswoman has taken legal action against her uncle, accusing him of seizing control of a company she says she established and funded entirely with her own money, in a case that has now reached the UAE’s highest court.

The UAE’s Federal Supreme Court has upheld her appeal against a previous ruling that dismissed her claim, reopening the dispute over ownership and financial entitlements linked to the company.

According to Emarat Al Youm, the claimant said she had a verbal agreement with her uncle to establish the company on an equal basis, with a third party listed as a nominal owner. 

She told the court she transferred Dh500,000 to cover the company’s government guarantee, after which the business was set up and began operating under her management. She argued that the registered owner held the company in name only, presenting written documents and electronic correspondence as evidence. 

She also said she bore all costs related to licensing, rent and capital, and suffered financial and moral harm after being excluded from the business. The defendants denied the allegations, disputing the authenticity of the documents and maintaining that no contractual relationship existed.

They pointed to official company records showing ownership under their name. An initial ruling had ordered the uncle to pay more than Dh638,000, a decision upheld on appeal, before being overturned in a later judgment that dismissed the claim entirely.

However, the Federal Supreme Court found that the previous ruling failed to properly assess key evidence, including financial transfers and correspondence indicating the claimant’s role in funding the company.

It said the judgment overlooked essential arguments and was based on insufficient reasoning. The court consequently overturned the decision and referred the case back to the appellate court for reconsideration.