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Criminal Defense
Breach of Trust in Dubai: When is it a Crime and What is the Penalty?
Breach of trust in Dubai is a crime punishable under the UAE Crimes and Penalties Law by imprisonment or a fine, where a person received money or movable property by way of deposit, lease, pledge, loan for use or agency, and then embezzled it, used it for himself or dissipated it to the detriment of its owner. If, however, the money passed to him as a loan or as the price of goods and he did not return it, the dispute is usually a civil debt, not a crime, and that is the distinction that decides most breach of trust complaints before the Public Prosecution in Dubai.
Breach of trust cases come before the Dubai courts again and again between partners, between employers and staff who collect payments, between principals and their agents, and over rented cars and equipment that are never returned. The owner of the money therefore needs to know when to file a criminal complaint and when to go to a civil claim, and the accused needs to know his defences before giving any statement. In both situations a criminal lawyer in Dubai shortens the road from the first day.
This guide explains the elements of the crime of breach of trust in the UAE, its penalty, when the case lapses, the effect of settlement and waiver, how to file a complaint in Dubai, and the main defences of the accused. It forms part of our wider guide Criminal Cases in the UAE.
What is breach of trust under UAE law?
Under the UAE Crimes and Penalties Law, breach of trust rests on one idea: money handed to you to keep, use or manage on behalf of its owner, which you then treat as your own. The property may be cash, instruments or any other movable property, so breach of trust does not apply to real estate.
The trust contracts named by the law
Deposit, lease, pledge, loan for use and agency. If the money was not handed over under one of these contracts, or what the law treats as equivalent, there is no crime, however great the loss.
The law widens the concept of the agent and treats three categories as agents: a partner in respect of jointly owned property, a person who acts on another’s property without mandate, and anyone who received something to use for a specific purpose for the benefit of its owner or of another. That is why facts many people do not expect fall within breach of trust, such as a partner who draws on the company account for himself, or a person who received a sum to buy specific goods and spent it on something else.
When is breach of trust a crime?
Refusing to return money is not enough on its own. The Public Prosecution in Dubai looks for four elements together, and if one is missing the complaint usually turns into a civil dispute:
Delivery under a trust contract
The money reached the accused with its owner’s consent under one of the trust contracts, rather than being taken without consent, which would be theft.
Ownership stays with the owner
The money was handed over to be kept or used for a specific purpose and then returned, and its ownership did not pass to the recipient as it does in a loan or a sale.
The act of breach
Embezzlement, use or dissipation, meaning any act that contradicts the purpose for which the money was handed over, such as selling, pledging, spending it personally or denying receipt.
Harm to the rightful owner
The act was done to the detriment of the owner or of anyone with a right in the property, with the accused knowing the property was not his and intending to deal with it as an owner.
When does the dispute stay civil and not amount to breach of trust?
This is the question on which most complaints are decided. Money handed over as a loan becomes the property of the borrower and a debt he owes, so if he does not repay it there is no breach of trust but a claim for a debt. The same applies to the price of goods and to sums in a commercial relationship that the parties agreed would mix with the recipient’s own funds.
In Dubai a creditor often files a breach of trust complaint to put pressure on a debtor, and the prosecution ends by archiving it because the relationship is one of debt. We explained that stage in Converting a Criminal Report to a Civil Dispute: When Does the Prosecution Archive the Report?, and if you have no written contract see Proving Debt Without Written Evidence in the UAE.
The practical rule
Ask yourself whether the recipient had to return the very same money or use it for a specific purpose. If so, the facts are closer to breach of trust. If he only had to pay back an equivalent sum when asked, the facts are closer to a civil debt.
The forms of breach of trust most often seen before the Dubai courts
The partner and company funds
A partner is treated as an agent over jointly owned property, so if he transfers revenues or profits to his own account without right he may face criminal liability, alongside the partners’ rights explained in Partner Exit from the Company: How to Protect Your Interests.
The employee and collected payments
A sales representative or accountant who receives sums from customers to pass on to the company and then keeps them for himself.
The agent and the power of attorney
An agent who receives the price of a car or a sum in his principal’s name and does not hand it over, a situation explained in Misuse of Legal Power of Attorney in the UAE.
The hirer and hired property
A person who hires a car or equipment and then sells it, pledges it or refuses to return it with the intention of keeping it.
Money handed over for a specific purpose
A sum handed over to buy specific goods, to pay fees or to transfer to another person, which was spent on something else.
What is the difference between breach of trust, fraud and theft?
The difference lies in how the money reached the offender, which is what the Public Prosecution focuses on when characterising a complaint:
Theft
The money is taken without its owner’s consent.
Fraud
The owner hands over his money willingly, but his consent was obtained by deception through fraudulent means, a false name or a false capacity.
Breach of trust
The owner hands over his money with genuine consent and without deception under a trust contract, and the recipient later deals with it as an owner.
This distinction has practical consequences, because a wrong characterisation may weaken the complaint or open a door for the defence. For property offences generally see Crimes Against Property in UAE Penal Law.
What is the penalty for breach of trust in the UAE?
Under the Crimes and Penalties Law, breach of trust in its basic form is punishable by imprisonment or a fine, at the court’s choice. The offence is a misdemeanour, and since the article sets no specific term or amount, imprisonment ranges from one month to three years and the fine from AED 1,000 to AED 5,000,000 within the general limits of the law.
Related forms of breach of trust carry imprisonment of up to two years or a fine of not less than AED 20,000. They are:
Lost property
Appropriating, with intent to own it, lost property belonging to another.
Property received by mistake
Appropriating, with intent to own it and with knowledge of the facts, property that came into one’s possession by mistake or by force majeure, such as a sum transferred to one’s account in error and kept.
Pledged or attached property
A pledgor who embezzles movable property he pledged as security for a debt, and an owner appointed custodian of his own movables attached by a judicial or administrative order who embezzles any of them.
The court may suspend a prison sentence not exceeding one year where the conditions are met, and alongside the penalty the victim keeps the right to claim the return of the money and compensation.
Can a person accused of breach of trust be arrested?
Yes. The Criminal Procedure Law allows a judicial police officer to arrest an accused who is present in breach of trust misdemeanours where there is sufficient evidence, even outside cases of flagrante delicto. The accused may therefore be summoned to a police station and held on the complaint, and here What to Do If a Complaint Is Filed Against You at Dubai Police? and Bail Release in the UAE: How to Get Out of Detention? will help.
When does a breach of trust case lapse?
Under the Criminal Procedure Law, the criminal action in misdemeanours lapses after five years from the day the offence was committed, that is, the day of the embezzlement or dissipation. This period is interrupted by any step of investigation, accusation, trial or settlement, and by evidence-gathering steps taken against the accused or formally notified to him, and it then starts again from the date of the last step.
Where the parties are relatives
If the victim is the spouse of the accused or one of his ascendants or descendants, the action may only be brought on the victim’s complaint, unless the property is attached or encumbered with another person’s right, and the complaint is not accepted after three months from the day the victim learned of the offence and its perpetrator. The victim may withdraw the complaint at any time before a final judgment, and the action then lapses.
Can breach of trust be settled?
Yes. Breach of trust and its related forms are among the offences in which the Criminal Procedure Law allows criminal settlement. Settlement is possible at any stage of the case, before the Public Prosecution or the court, even after the judgment has become final.
Before a final judgment
Settlement extinguishes the criminal action.
After a final judgment
The Public Prosecution orders the execution of the judgment to be stayed.
The civil right
Settlement does not affect the victim’s right to claim compensation before the civil courts unless he waives it or it is covered by the settlement agreement, so the agreement must be drafted precisely.
Before referring the case to court, the Public Prosecution may send the parties to criminal mediation for a period not exceeding one month, renewable once. A settlement record approved by the prosecution has the force of an executive instrument and neither party may withdraw from it after approval, and a request to record a settlement is not accepted if it is conditional or subject to a time limit. For more detail see Settlement and Penal Reconciliation in UAE Criminal Procedure Law.
How to file a breach of trust complaint in Dubai
Documents
Gather proof of delivery and its purpose
The contract, receipt, bank transfer or power of attorney, and the messages that set out the purpose of the money and how it was to be returned.
Demand
Ask clearly for the return
Send a clear request for return or delivery, in writing if possible. A refusal or stalling afterwards is an important indication of the intention to keep the money.
Complaint
File the complaint
The complaint is filed at the competent police station or with the Public Prosecution in Dubai, stating the trust contract under which the money was handed over and its exact value.
Litigation
Claim compensation
The victim may bring a civil claim before the criminal court until the close of pleadings, after paying the prescribed fees, but not for the first time before the Court of Appeal.
Accused of breach of trust: what are the main defences?
The defence usually starts from the elements of the offence itself. The defences most often raised before the Dubai courts include:
No trust contract
The money was handed over as a loan or as a price and its ownership passed, so the relationship is civil, not criminal.
No intention to own
A delay in returning the money for a legitimate reason, or a genuine accounting dispute between the parties, does not amount to embezzlement.
Running account and counter-claims
The parties have intertwined dealings that require an account to be taken, or the accused has counter-claims against the complainant.
The action has lapsed
Through the passage of time, withdrawal of the complaint between relatives, or criminal settlement.
Weak evidence
There is no proof of the delivery itself or of the amount claimed.
Whatever your position, do not give a detailed statement to the police or the prosecution before reviewing your documents with a lawyer, because what is said in the first statement is hard to correct later.
Key legal deadlines in breach of trust
5 years
The period after which the criminal action lapses in misdemeanours, from the day of the offence, interrupted by investigation, accusation, trial and settlement.
3 months
The time for the victim’s complaint where he is the spouse, ascendant or descendant of the accused, from the day he learned of the offence and its perpetrator.
1 month
The maximum period of criminal mediation before the Public Prosecution, renewable once.
Practical tips before any step
Record the purpose before handing over
Do not hand over money, a car or equipment for a specific purpose without a document stating the purpose and when and how it is to be returned.
Do not turn a debt into a complaint
A criminal complaint over an ordinary debt usually ends in archiving and wastes your time; the faster route is a civil claim.
Draft the settlement precisely
If you are offered a settlement, make sure the agreement states expressly what happens to the civil right and is not made conditional.
If you are accused, gather your documents
A loan agreement, invoices or account statements are what prove that the relationship is civil, not one of trust.
Legal references
1- Federal Decree-Law No. 31 of 2021 issuing the Crimes and Penalties Law
2- Federal Decree-Law No. 36 of 2022 amending certain provisions of the Crimes and Penalties Law
3- Federal Decree-Law No. 13 of 2025 amending certain provisions of the Crimes and Penalties Law
4- Federal Decree-Law No. 38 of 2022 issuing the Criminal Procedure Law
Frequently asked questions about breach of trust in Dubai
Breach of trust in Dubai
AWADH ALMHEIRI LAW FIRM AND LEGAL CONSULTATIONS handles breach of trust cases in Dubai before the police, the Public Prosecution and the Dubai courts, for victims and accused alike: characterising the facts, filing or answering the complaint, criminal settlement and civil claims. If you are looking for a criminal lawyer in Dubai or a breach of trust lawyer in Dubai, learn about our services in Law Firm in Dubai: Comprehensive Legal Services for Individuals and Companies.
The other emirates
The firm also handles breach of trust cases in Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain, since the breach of trust provisions of the federal law apply across all the emirates of the UAE.
