Businessmen in Dubai have got further relief from the local government as the Dubai Public Prosecution service has moved to implement a legal framework that will allow bounced cheques to be dealt with outside the court system.
Dubai Attorney General Essam Al Humaidan announced this week that the government had activated a new penal order system that will allow minor misdemeanors and offenses to be dealt with outside the courts.
Of particular interest to businessmen and entrepreneurs, the local legal system will now deal with bounced cheques of up to Dhs200,000 with fines rather than prosecution and prison time as was the case earlier.
Also, offenses such as insult and defamation cases, and non-payment of rents would be now dealt with fines.
According to the Al Humaidan, the penal order was activated two weeks ago in certain cases related to naturalization and residency issues.
For other issues, the relevant entities would begin implementing the system as of December 4.
Such fines would be payable through ‘smart’ devices installed in prosecution facilities, police stations and various other public cases in Dubai.
The move follows the implementation of the insolvency law in the UAE last year, which lowered risks for those who want to run businesses in the country as it allows entrepreneurs to skip a jail term if their firms default on debt payment.