Dubai court voids property gifts in Dh19m embezzlement case

The Dubai Civil Court of First Instance has ruled that property gifts made by a convicted embezzler to his daughter cannot be enforced against creditors, ordering the assets to be restored to his name to allow recovery of funds.

The court found that the defendant, previously convicted of embezzling around Dh19.2 million from a company he headed, had transferred the ownership of two properties to his daughter in an attempt to shield them from creditors, Emarat Al Youm reported.

The case stemmed from a criminal complaint in which the former chief executive, along with others, was found guilty of diverting company funds through a sham development agreement. A criminal court later sentenced him to 10 years in prison, ordered his deportation and required repayment of the embezzled sums.

Following the ruling, the affected company secured a civil judgment exceeding Dh19 million and began enforcement proceedings, only to find no assets registered under the defendant’s name.

Investigations revealed that in 2019 he had transferred a luxury apartment and a residential plot to his daughter through gift contracts without consideration.

The court said the timing of the transfers, alongside the absence of other assets, indicated bad faith and intent to harm creditors. It ruled that the gifts remain legally valid between the parties but are not enforceable against the claimant, ordering the properties to be re-registered to enable execution of the judgment.