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Dubai Courts, DED sign deal on domicile system

DUBAI - The Department of Economic Development (DED) in Dubai and Dubai Courts (DC) have signed a partnership agreement to apply the chosen domicile registration system. The initiative will contribute to improve government and judiciary services, and facilitate and accelerate the litigation process as well as implementation of judicial rulings.

The chosen domicile in brief is an appointed legal entity to receive official documents (such as legal notices) for a company or a person who is a party in a legal action.

Dr. Ahmed Saeed Bin Hazim, Director General of Dubai Courts, said: “This agreement reflects the growing cooperation between government agencies in Dubai and Dubai Courts’ strategy for enhanced services and the application of best practices in litigation processes.”

He added that the UAE laws have provisions for appointing a chosen domicile on behalf of the client to receive notifications. For example, Article 84 of the Civil Transactions Law No. 5 of 1985 states that a domicile may be taken for the implementation of a specific legal action including forced execution procedures. The chosen domicile may only be proven in writing.

“Dubai Courts and DED will coordinate to develop the standards and mechanisms for implementing the chosen domicile registration and constitute a working group to follow up and ensure that the system achieves the desired goals,” added Hazim.

Mr Sami Al Qamzi, Director General of DED said that the new service will be provided by Emcredit of DED. “Emcredit, through its dealings with commercial banks, concluded that there is a real need to provide services that will reflect positively on banks in terms of reducing litigation procedures as well as material cost, and ensuring rapid collection of amounts and obligations, in addition to reducing financial burden and maintaining updated data on customers,” he added.

“The chosen domicile system is already applied in different countries and by some banks in the UAE for companies. It offers several benefits to individuals. Identifying a location for receipt of documents confidentially enables them to move from one location to another without having to update the authorities concerned, move about without the risks of any legal action being taken without their knowledge, and avoid the embarrassment of receiving legal notices in front of family members or in the workplace,” added Al Qamzi.

Emcredit, on receipt of notices from courts or other entities, will contact the individual concerned, send a text message and an email (if there is any), as well as deliver the notice through registered post to the address recorded with the company.