Fujairah Court Upholds Dh4.9 Million Ruling in Licence Dispute

Feb 17, 2026

100 min

Feb 17, 2026 17:30

Dh4.9m ruling upheld in Fujairah licence transfer case

## Court Decision

The Fujairah Federal Court of Appeal has confirmed a previous ruling that mandates a company and its partners to pay Dh4,943,018 to an individual. This decision stems from a breach of contract related to the transfer of a commercial licence and rights to use an industrial land plot in Fujairah.

## Interest Rate Adjustment

Initially, the court had set an interest rate of 12% on the amount owed. However, this has been revised to 5% annually, effective from the date the lawsuit was filed until the full payment is made. The interest will not exceed the principal amount.

## Background of the Case

The dispute began when the plaintiff sued for the remaining balance of an agreement worth $1.633 million. This agreement involved the waiver of a commercial licence and usufruct rights to a 9,688 square metre industrial plot. The company had paid the first instalment but ceased further payments, even though the plaintiff had completed the necessary transfer procedures.

## Counterclaim Dismissed

Three defendants filed a counterclaim to annul the agreement, seeking Dh1.199 million and Dh200,000 in compensation. They argued the plaintiff only held usufruct rights, not ownership of the land. The Court of First Instance dismissed this counterclaim and held the third, fourth, and fifth defendants liable for the payment with 12% interest. The case against the first and second defendants was dismissed due to lack of legal standing.

## Expert Panel Findings

During the appeal, a panel of experts was appointed to review the contractual relationship. They found that the defendants had breached the contract by not paying the remaining balance, while the plaintiff had fulfilled their obligations.

## Final Ruling

The appellate court supported the lower court's decision, rejecting claims that the agreement was void or that the price was unfair. Allegations of forgery were also dismissed. The court maintained the liability of the defendants but adjusted the interest rate. Appeals were dismissed, and each appellant was ordered to cover their own legal costs.

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