UAE court orders man to repay Dh2 million loan borrowed from friend

Dubai: The Dubai Civil Court has ordered an Arab man to repay Dh2 million to a friend who lent him the money, rejecting his attempt to argue that the loan was only Dh1 million and that the creditor was improperly seeking usurious interest.

The plaintiff said he loaned the money in December 2024 under a signed IOU in which the defendant pledged to repay the sum within three months. Despite repeated demands, repayment never came, prompting the creditor to file suit seeking both the principal and an additional Dh500,000 in damages for lost investment opportunities.

In court, the defendant admitted borrowing money but claimed the true sum was Dh1 million, of which he had already repaid Dh100,000, leaving Dh 900,000 outstanding. He argued that the contract was void because the creditor was attempting to impose “prohibited interest,” and submitted WhatsApp exchanges in support of his case.

The court dismissed those claims, ruling that the signed IOU constituted binding proof under UAE evidence law. Because the defendant never denied his signature, the judge said, the document stood as conclusive evidence against him.

The court ordered him to repay the full Dh2 million loan plus 5 per cent annual interest from the date of the lawsuit until final settlement. However, it rejected the creditor’s demand for Dh500,000 in additional damages, finding no evidence of actual loss.