Dismissal of a Criminal Complaint in the UAE: When Does a Dispute Become a Civil Dispute?

Dismissal of a criminal complaint in the UAE does not necessarily mean that the claimant has lost their money or legal rights. It also does not automatically mean that the accused has been acquitted. In many cases, the Public Prosecution may determine that the facts do not satisfy the elements of a criminal offence, or that the available evidence is insufficient to proceed with the criminal case. As a result, the criminal proceedings may come to an end while a financial or contractual dispute remains capable of being pursued before the civil courts.

This makes it important to distinguish between a criminal offence and a civil dispute. Failure to repay a debt, breach of contract, or delay in performing a contractual obligation does not, by itself, constitute fraud or breach of trust. Conversely, a financial dispute may become a criminal matter where there is evidence of an independent criminal offence, such as using fraudulent means to deceive another person or misappropriating property entrusted to the accused.

Federal Decree-Law No. 38 of 2022 Promulgating the Criminal Procedure Law regulates procedures relating to the conclusion of criminal proceedings, including dismissal of cases, appeals against orders that there is no basis for filing a criminal case, the emergence of new evidence, and the termination of certain precautionary measures. Federal Decree-Law No. 25 of 2025 Promulgating the Civil Transactions Law also came into force on 1 June 2026 and is one of the principal laws governing civil relationships and obligations in the UAE.

In this article, we explain when the Public Prosecution may dismiss a criminal complaint, when a dispute is considered civil rather than criminal, the difference between dismissal of a complaint and an order that there is no basis for filing a criminal case, whether a civil claim can be filed after dismissal, the deadlines that must not be missed, when an investigation may be reopened, and what the complainant and the person against whom the complaint was filed should do after the criminal proceedings come to an end.

What Does Dismissal of a Criminal Complaint Mean in the UAE?

The dismissal of a criminal complaint means that the criminal proceedings will not continue to trial pursuant to the decision and procedures adopted by the Public Prosecution.

It is important to distinguish between the different forms in which criminal proceedings may come to an end. The current Criminal Procedure Law distinguishes between dismissal of a case with a decision on the merits and dismissal without a decision on the merits at the prosecution stage. Each situation has different procedural consequences.

Under Article 118, after conducting an investigation, the Public Prosecution may issue a decision to dismiss the case and release the accused unless they are detained for another reason. The decision must contain the required information and legal reasons. Article 119 addresses circumstances in which there is no legal basis for proceeding with a case involving misdemeanours and violations.

Therefore, the word “dismissal” alone is not sufficient to determine the legal position. The exact wording of the decision, its reason, and the procedural stage of the case must all be examined.

Does Dismissal of a Criminal Complaint Mean That the Accused Has Been Acquitted?

No.

Dismissal is a decision issued by the Public Prosecution in the exercise of its authority to investigate and dispose of criminal proceedings. It is not a judicial acquittal issued by a court.

The reason for dismissal may be that the facts do not constitute a criminal offence, that the evidence is insufficient, or that continuing the criminal proceedings has no legal basis.

Accordingly, the following should not be treated as equivalent:

Dismissal of a criminal complaint

and

A judicial acquittal.

Nor should dismissal itself be regarded as confirmation that all financial disputes between the parties have ended. A civil right may remain capable of being pursued under the law.

Does the Public Prosecution Convert a Criminal Complaint into a Civil Dispute?

The more accurate legal description is that:

The criminal proceedings may come to an end while the underlying civil right remains in existence.

The dismissal of a criminal complaint does not necessarily mean that the Public Prosecution issues a simple decision entitled “conversion of the complaint into a civil case”, after which the file automatically becomes a civil lawsuit.

The facts may instead constitute a dispute concerning a debt, contract, or contractual obligation. If the elements of a criminal offence are not established, the criminal proceedings may end, and the person asserting the right may need to pursue the appropriate civil remedy to recover that right.

This distinction is particularly important because a creditor may mistakenly assume that filing a criminal complaint will automatically result in recovery of the outstanding amount.

When Is a Matter Considered a Civil Dispute Rather Than a Crime?

Not every financial dispute constitutes a criminal offence.

Examples of disputes that may primarily be civil or commercial in nature include:

Failure to Repay a Debt

If one person lends money to another and the borrower fails to repay it, the mere failure to repay the amount is not, by itself, sufficient to establish fraud.

Breach of Contract

Where two parties enter into an agreement for a sale, supply, or provision of services and one party fails to perform its contractual obligations, the matter may constitute a contractual claim for performance, compensation, or repayment.

Delay in Completing a Project

A contractor or supplier’s failure to complete a project within the agreed timeframe does not automatically constitute a criminal offence.

Loss of a Partnership or Investment

A commercial loss, even where substantial, does not in itself establish fraud.

Disputes Between Business Partners

Disagreements between partners concerning profits, expenses, accounts, or financial obligations may constitute a commercial dispute requiring examination of the partnership agreement, accounts, and contractual obligations.

However, the legal classification may change if evidence emerges of an independent criminal offence.

When Does a Financial Dispute Become Fraud?

The key question is not:

“Did the victim lose money?”

The key question is:

“Was the money obtained through fraudulent conduct that satisfies the legal elements of the offence?”

If a false name, false capacity, or fraudulent means capable of deceiving the victim were used to induce the victim to hand over money or property, the matter may acquire a criminal character depending on the applicable law, facts, and evidence.

However, where money was transferred as part of a legitimate contractual relationship and a dispute subsequently arose regarding performance or repayment, the matter may remain within the scope of civil liability.

Therefore, the existence of a bank transfer, contract, invoice, or receipt does not, by itself, determine whether a matter is civil or criminal. The method by which the money was obtained, the intention involved, and the surrounding circumstances must all be examined.

What Is the Difference Between Fraud, Breach of Trust, and a Civil Dispute?

This is one of the most important distinctions in financial criminal complaints.

Fraud

Fraud generally concerns deception that materially affects the victim’s decision and causes the victim to transfer money, property, or another benefit as a result of the fraudulent conduct.

Breach of Trust

Breach of trust differs from fraud in the manner in which the property came into the person’s possession.

Where money or movable property is entrusted to a person for safekeeping, agency, or a specific purpose and that person subsequently misappropriates, dissipates, or uses it in a manner that harms its owner, the elements of breach of trust may be established depending on the facts.

Civil Dispute

A matter is more likely to fall within the civil sphere where the relationship originated from a lawful contract or obligation and there are no independent elements of a criminal offence, such as merely failing to make payment or failing to perform a contractual obligation.

Misclassifying the dispute can result in choosing an inappropriate legal route from the outset.

Is Failure to Repay a Loan a Crime in the UAE?

Mere failure to repay a loan is not, by itself, sufficient to establish a criminal offence.

If money was provided under a valid loan arrangement, the underlying claim may be one for recovery of the debt and, where applicable, interest or compensation under the relevant civil and commercial rules.

However, if the borrowing was accompanied by independent fraudulent conduct or other facts constituting a criminal offence, the legal classification may be different.

It is therefore important to distinguish between:

The existence of an outstanding debt

and

The existence of a criminal offence connected with obtaining or dealing with that debt.

Can a Civil Claim Be Filed After a Criminal Complaint Has Been Dismissed?

Yes, depending on the nature of the right, the facts, and the previous proceedings.

The conclusion of criminal proceedings does not necessarily extinguish a civil right.

If a person is claiming a specific amount based on a contract, written acknowledgment, bank transfers, correspondence, or other evidence, civil legal remedies may remain available, including an ordinary civil claim or a payment order where the statutory requirements are satisfied.

Under Article 144 of the current Civil Procedure Law, a payment order may be sought where the creditor’s right is established in writing, is due for payment, and the debt is for a specified amount or the claim otherwise satisfies the legal requirements. Before applying for a payment order, the debtor must generally be formally required to make payment for a period of at least five days. The payment order application is then submitted in accordance with the applicable procedure.

Moving from the criminal route to a civil claim therefore requires selecting the correct legal procedure rather than simply submitting the same criminal complaint again using different wording.

Can a Payment Order Be Requested After the Criminal Complaint Is Dismissed?

It may be possible if the statutory requirements for a payment order are satisfied.

Among the principal requirements are that the claim must generally be:

• Established in writing.
• Due for payment.
• For a specified monetary amount.
• Compliant with the other requirements prescribed by the Civil Procedure Law.

Article 144 sets out the relevant requirements and procedures. Where applicable, the claimant may also seek compensation, interest, or precautionary measures in accordance with the law.

However, where the existence or amount of the debt is subject to a serious dispute or requires extensive evidence and investigation, a payment order may not be the appropriate procedure. An ordinary civil action may be more suitable depending on the circumstances.

Can a Precautionary Attachment Be Requested After a Criminal Complaint Is Dismissed?

The dismissal of a criminal complaint does not automatically result in a precautionary attachment, but precautionary measures may be considered to protect a civil claim where the statutory requirements are satisfied.

A precautionary attachment generally requires a legal basis for the claim and the existence of circumstances justifying the measure under the applicable law, including situations involving a legitimate concern regarding the debtor’s assets or the general security available to satisfy the claim.

The debtor’s assets and the nature of the underlying claim should therefore be assessed before selecting this course of action.

A criminal complaint should not be used as a substitute for appropriate civil precautionary measures where the underlying issue is essentially a debt or contractual obligation.

What Happens If an Order Is Issued That There Is No Basis for Filing a Criminal Case?

The current Criminal Procedure Law expressly regulates an order that there is no basis for filing a criminal case.

Under Article 134, the victim and the civil claimant may appeal an order issued by the Public Prosecution that there is no basis for filing a criminal case where the grounds include failure to establish the accusation, the fact that the conduct is not punishable by law, or insufficient evidence.

Article 135 provides that the appeal period in such circumstances is 10 days, calculated for the relevant parties from the date on which the order is notified.

This deadline is particularly important and should not be overlooked.

Who Can Appeal an Order That There Is No Basis for Filing a Criminal Case?

The law grants the victim and the civil claimant the right to appeal such an order in the circumstances prescribed by law.

An appeal against the decision should not be confused with filing a new civil claim. They are separate legal procedures and may serve different purposes.

If the claimant believes that the evidence is sufficient to justify criminal proceedings, an appeal may need to be considered.

If, on the other hand, the claimant believes that the underlying right is primarily financial or contractual and that the criminal route is inappropriate, a civil claim may be considered depending on the documents and facts.

What Is the Time Limit for Appealing an Order That There Is No Basis for Filing a Criminal Case?

The appeal period is 10 days under Article 135 of the Criminal Procedure Law.

For the relevant parties, the period runs from the date on which the order is notified rather than simply from the date on which the order was issued.

Determining the date of notification is therefore practically important because missing the statutory deadline may result in losing the available right of appeal.

The claimant should retain a copy of the decision together with evidence of the date on which it was notified.

Can an Investigation Be Reopened After a Criminal Complaint Has Been Dismissed?

Yes, but not merely because a party has changed its mind or wishes to resubmit the same evidence.

Article 132 of the Criminal Procedure Law provides that an order issued by the Public Prosecution that there is no basis for filing a criminal case prevents a return to the investigation unless new evidence emerges.

New evidence may include witness testimony, reports, documents, or electronic evidence that had not previously been presented to the Public Prosecution and that may strengthen evidence previously considered insufficient or contribute to revealing the truth.

Reopening an investigation is therefore not simply an opportunity to reorganise the same file. There must be a new element with genuine evidentiary value.

What Is Considered New Evidence?

Depending on the circumstances of the case, new evidence may include:

• A document that was not previously included in the case file.
• Correspondence that was not previously submitted to the Public Prosecution.
• New electronic evidence.
• Testimony from a witness who had not previously been heard.
• A new report or official record.
• A document clarifying a disputed fact.

However, not every document that is technically new will necessarily constitute legally relevant “new evidence”. What matters is whether the evidence has the capacity to strengthen the case or assist in revealing the truth in accordance with the applicable legal standard.

Can the Public Prosecutor Cancel a Dismissal Decision?

In misdemeanour cases, Article 120 grants the Public Prosecutor the authority to cancel a dismissal decision with a decision on the merits within three months from the date of issuance, unless the decision has already been appealed and the appeal has been rejected.

This is a specific statutory power. It does not mean that every dismissal decision may be cancelled at any time and without conditions.

The exact nature of the decision and the procedural stage must therefore be established before determining whether it may be cancelled.

What Happens to Precautionary Measures After Criminal Proceedings End?

Another important practical issue is the status of precautionary measures.

Article 117 of the Criminal Procedure Law regulates the termination of certain precautionary measures under the law, including circumstances involving a judgment of lack of jurisdiction, a final acquittal, or settlement of amounts awarded by the court, depending on the circumstances.

However, the legal termination of a measure should not be confused with the practical and administrative steps required to remove it from the relevant government systems.

If there is a travel ban, freezing order, or other precautionary measure associated with the case, its status should therefore be followed up after the criminal proceedings have ended.

What Should the Complainant Do After the Criminal Complaint Is Dismissed?

If you are the complainant, do not simply start the process again without analysing the previous decision.

Begin by reviewing the reason for the dismissal.

Then ask the fundamental question:

Do I want to challenge the criminal decision, or do I want to recover my financial right through civil proceedings?

The appropriate legal route can then be assessed.

If There Was an Error in Assessing the Evidence

An appeal against the order that there is no basis for filing a criminal case may be appropriate, subject to the statutory 10-day period from notification.

If You Have New Evidence

Reopening the investigation may be considered if new evidence has emerged and the statutory requirements are satisfied.

If the Right Is Based on a Fixed Debt

A civil claim or payment order may be considered depending on the documents, the debt, and the applicable legal requirements.

If You Are Concerned About the Debtor’s Assets

Appropriate precautionary measures may be considered in accordance with the applicable legal requirements.

What Should the Person Against Whom the Complaint Was Filed Do After Its Dismissal?

If you are the person against whom the complaint was filed, the conclusion of the criminal proceedings in your favour does not necessarily mean that the matter should simply be ignored.

You should retain:

• The dismissal decision.
• Documents submitted during the proceedings.
• Relevant correspondence.
• Contracts.
• Bank transfer records.
• Electronic evidence.
• Evidence establishing the nature of your relationship with the complainant.

This is important because dismissal of the criminal complaint may not prevent the complainant from pursuing a civil claim. In addition, an order that there is no basis for filing a criminal case may be subject to appeal within the statutory period.

Can a Civil Claim Be Filed Even If the Public Prosecution Determines That the Conduct Was Not a Crime?

Yes, in principle, a civil right may have an independent legal basis from criminal liability.

For example, if a person claims repayment of a loan or performance under a contract and the criminal proceedings conclude that no criminal offence has been established, this does not necessarily mean that the underlying debt has been extinguished.

The dispute may remain:

Civil in relation to the debt

even though it has ended:

Criminally in relation to the accusation.

The civil court will examine the underlying civil right based on the documents, evidence, and applicable substantive and procedural rules.

Does Dismissal of a Criminal Complaint Cancel the Debt?

No.

The dismissal of a criminal complaint does not, by itself, release a debtor from an established debt.

If there is a contract, acknowledgment of debt, documents establishing the obligation, correspondence, bank transfers, or other admissible evidence, the financial claim may remain capable of being pursued.

This illustrates the distinction between:

Criminal liability

and

Civil liability.

Criminal liability concerns establishing a criminal offence and the applicable punishment, while civil liability concerns repayment, compensation, performance of an obligation, or another civil remedy depending on the circumstances.

Can a Criminal Complaint Be Used to Pressure a Debtor?

As a matter of legal principle, a criminal complaint should not be used merely as a pressure mechanism to recover a debt where the elements of a criminal offence are not established.

Mischaracterising a dispute may result in dismissal of the complaint and may cause the claimant to lose valuable time that could otherwise have been used to pursue appropriate civil or precautionary measures.

The analysis should therefore begin with the actual relationship between the parties:

• Was it a loan?
• A sale?
• An agency relationship?
• A partnership?
• An entrustment?
• An investment?
• Another contractual arrangement?

The legal consequences should then be determined based on the actual facts.

What About a Malicious or False Criminal Complaint?

The mere dismissal of a criminal complaint does not automatically establish that the complaint was malicious or false.

This is an important distinction.

Article 325 of the Crimes and Penalties Law criminalises falsely reporting, in bad faith, that a person has committed an act punishable by law or subject to administrative accountability, as well as fabricating material evidence or causing proceedings to be taken against a person while knowing that person to be innocent, subject to the conditions prescribed by the law.

Accordingly, the relevant question is not simply whether the complaint was dismissed. It is necessary to examine whether there was false reporting, bad faith, knowledge of the person’s innocence, and the other elements required by the applicable criminal provision.

Can Compensation Be Claimed for a Malicious Criminal Complaint?

It may be possible where the applicable legal requirements are satisfied and the claimant can establish the relevant conduct, actual damage, and causal connection.

However, compensation should not be presented as an automatic consequence of every dismissed criminal complaint.

There is a significant difference between:

A complaint in which a criminal offence was not established

and

A false complaint made in bad faith with knowledge that the person accused was innocent.

The evidence and circumstances should therefore be carefully assessed before pursuing an independent compensation claim or alleging that the complaint was malicious or false.

Can the Dispute Be Commercial Rather Than Merely Civil?

Yes.

Some financial disputes may be classified as commercial depending on the parties, their business activities, and the nature of the relationship.

Examples include:

• Corporate disputes.
• Supply agreements.
• Commercial transactions.
• Partnership disputes.
• Certain business-related claims.

Therefore, it may not always be sufficient to describe the matter simply as a “civil claim”. Depending on the applicable jurisdictional rules and the legal classification of the dispute, the matter may fall within the commercial courts or procedures.

What If the Other Party Is Outside the UAE?

The fact that the debtor or other party is outside the UAE does not, by itself, extinguish the financial claim.

However, issues relating to jurisdiction, service of process, enforcement, and recognition of judgments may require specific legal analysis. International jurisdiction and cross-border enforcement rules may also become relevant.

If the criminal complaint has ended and the debtor is outside the UAE, the claimant should therefore consider the appropriate civil route without unnecessary delay, particularly where assets, evidence, or documents may require protective measures.

What Documents Should Be Prepared After a Criminal Complaint Is Dismissed?

If you intend to pursue a civil claim, prepare a complete legal file rather than relying solely on the dismissal decision.

Important documents may include:

• The agreement or contract.
• Written acknowledgment of the debt.
• Bank transfer records.
• Invoices.
• Receipts.
• Relevant email correspondence.
• Relevant WhatsApp messages.
• Meeting minutes.
• Official correspondence.
• Documents previously submitted with the criminal complaint.
• The Public Prosecution’s decision and its reasons.
• Any new evidence that emerged after the dismissal.

Each document may assist in establishing the nature of the relationship, the existence and amount of the underlying right, and the date on which the obligation became due.

What Mistakes Should Be Avoided After a Criminal Complaint Is Dismissed?

Waiting Until the Deadline Expires

One of the most serious mistakes is keeping the decision without taking action and discovering later that an appeal could have been filed within 10 days of notification.

Filing the Same Complaint Again

If the facts and evidence have not materially changed, simply repeating the same complaint may not be the appropriate solution.

Ignoring the Civil Right

The conclusion of criminal proceedings does not mean that the money will automatically be recovered.

Confusing a Debt With Breach of Trust

The manner in which the property was transferred and the legal relationship between the parties are essential to determining the appropriate legal classification.

Ignoring New Evidence

If an important document or electronic evidence emerges, it may have legal significance under Article 132 if the statutory requirements for new evidence are satisfied.

Accusing the Other Party of Acting Maliciously Without Evidence

The dismissal of a complaint alone does not establish that the complaint was false or malicious.

What Is the Appropriate Legal Route After a Criminal Complaint Is Dismissed?

The appropriate course of action can be assessed through four key questions:

Is the Public Prosecution’s Decision Appealable?

If the decision is an order that there is no basis for filing a criminal case, the victim and civil claimant may have a 10-day appeal period from notification in the circumstances prescribed by law.

Has New Evidence Emerged?

If new evidence has emerged within the meaning established by law, the possibility of reopening the investigation may be considered.

Is the Underlying Dispute a Debt or Contractual Obligation?

If so, a civil claim, payment order, or another appropriate civil remedy should be evaluated based on the circumstances.

Is There a Need to Protect the Debtor’s Assets?

If there is a genuine concern regarding the debtor’s assets, appropriate precautionary measures should be considered rather than waiting until a final judgment is issued.

How Does a Lawyer Determine Whether a Matter Is Criminal or Civil?

A lawyer should not begin the analysis with the title of the complaint. The analysis should begin with the facts and the legal relationship between the parties.

In a financial dispute, the following questions are typically examined:

1. How did the relationship between the parties arise?
2. Why was the money transferred?
3. To whom was possession or ownership of the money transferred?
4. What obligation was supposed to be performed?
5. Was there deception from the outset?
6. Was the money or property entrusted to the other party for a specific purpose?
7. What evidence is available?
8. What reasons did the Public Prosecution provide in its decision?
9. Is the decision subject to appeal?
10. Has new evidence emerged?
11. Is there an established debt that can be pursued through civil proceedings?
12. Is a precautionary measure required to protect the claim?

The answers to these questions help determine the legal route most closely connected to the actual facts.

How Can Legal Consultant Mohammed Jasem Assist in These Cases?

Cases involving the dismissal of a criminal complaint and the transition from a criminal dispute to civil proceedings require careful examination of the Public Prosecution’s decision rather than simply relying on the outcome.

Legal Consultant Mohammed Jasem provides legal services involving the review of criminal complaints and decisions issued in connection with them, analysis of the reasons for dismissal, assessment of whether an order that there is no basis for filing a criminal case may be appealed, examination of new evidence, and evaluation of whether the matter should proceed through a civil claim, payment order, or precautionary measures depending on the nature of the dispute.

Legal review may include, depending on the circumstances:

• Financial criminal complaints.
• Fraud complaints.
• Breach of trust complaints.
• Loan and debt disputes.
• Partnership disputes.
• Contractual disputes.
• Appeals against orders that there is no basis for filing a criminal case.
• Requests to reopen investigations where new evidence has emerged.
• Civil and commercial claims.
• Payment orders.
• Precautionary measures.
• Compensation claims where a legal basis exists.

Frequently Asked Questions

Does Dismissal of a Criminal Complaint Mean That the Accused Is Innocent?

No. Dismissal is a decision issued by the Public Prosecution and is not a judicial acquittal. The reason may include the absence of a legal basis for proceeding with the case, insufficient evidence, or another reason depending on the circumstances.

Can I File a Civil Claim After a Criminal Complaint Has Been Dismissed?

Yes, depending on the nature of the right, the available documents, and the applicable jurisdiction. The conclusion of criminal proceedings does not necessarily extinguish a civil right.

Does Dismissal of a Criminal Complaint Cancel the Debt?

No. Where an established debt or civil obligation exists, the underlying financial right may remain capable of being pursued before the civil courts in accordance with the applicable legal procedures.

What Is the Time Limit for Appealing an Order That There Is No Basis for Filing a Criminal Case?

The appeal period for the victim and civil claimant is 10 days from the date of notification of the order in the circumstances specified by the Criminal Procedure Law.

Can an Investigation Be Reopened After a Criminal Complaint Has Been Dismissed?

Yes, where new evidence emerges and the requirements set out in Article 132 of the Criminal Procedure Law are satisfied.

Does Failure to Repay a Debt Automatically Constitute Fraud?

Not necessarily. The elements of the criminal offence must be established. The mere existence of an unpaid debt does not, by itself, establish fraud.