Breach of trust a useful tool for businesses in the UAE

The United Arab Emirates (UAE) has a population of almost 10 million, of which around 90% are expatriate workers. Although the consistent sunny weather and relatively relaxed environment are attractive, these are in reality additional benefits to the primary reasons that draw immigrants to the UAE. The business opportunities provided by the country’s central location, its own economic growth and proximity to other rapidly-expanding markets, relatively free trade environment, high financial liquidity and tax-free income are all reasons to attract hard-working people from all over the world.

However, the high level of investment and spending in the region also creates many opportunities for dishonest behaviour by people who have been placed in positions of responsibility and trust. This article gives a brief overview of one of the most commonly used criminal offences available to victims in such situations.

Breach of trust

The primary law governing crimes in the UAE is Federal Law No. 3 of 1987, as amended (Penal Code). While there are several provisions in the Penal Code to deal with offences that would be relevant to business, such as those relating to fraud, bribery, corruption and dishonoured cheques, there is one offence that is particularly well-suited to the all-too-frequent scenario of a trusted adviser, an employee or a business partner taking advantage of their position to the detriment of their principal, employer or partner. This offence is known as breach of trust.

Andrew Hudson is a senior associate and Omar Khattab is an associate of Al Tamimi & Company