Press Release: NEW REPORT BY BRITISH PARLIAMENTARIANS HIGHLIGHTS “THE REAL COST OF DOING BUSINESS IN THE UAE”

IHR-Advisors launches Report on 4 December 2023

Press Release

LONDON –  On December 4th 2023, a new report prepared by Baroness Helena Kennedy of the Shaws KC, the Rt Hon Sir Robert Buckland KC MP and the Rt Hon Alistair Carmichael MP highlighting the “Real cost of doing Business in the UAE” was launched. The report was prepared by the British parliamentarians who assembled at an evidence gathering session in June 2023 to consider the risks to business people who do business in the UAE and to consider whether or not their basic human rights are adequately protected.

The report states that in the UAE – despite its modern facade and significant expatriate community – the criminal justice system often falls short of guaranteeing basic human rights. In particular, the UAE’s legal framework poses significant challenges for business professionals, especially non-Emiratis. The country’s laws contain harsh penalties for freedom of expression violations, such as insulting the ruler or the state’s reputation. The report has also found that the independence of the judiciary in the UAE is a matter of concern. Finally, the report takes note of the “No pay no go” mechanisms and the retroactive application of Dubai Law 37 of 2009 as areas of particular concern. These mechanisms can be improperly deployed, leading to potential injustices for business professionals.

“No pay no go” refers to an informal understanding that business people will not be released in the UAE unless they have been able to pay whichever fines have been imposed upon them by the judge on their case. It is not written in law in the UAE and has led to many people staying in jail long beyond their sentences have been completed.

Law 37 – which in the case of British businessmen Ryan Cornelius and Charles Ridley was applied retroactively – states that if a criminal court has awarded a restitution payment and that payment has not been made, then the creditor can demand the Dubai Courts to extend the prison sentence of that individual for a period of between 5 and 20 years, depending on the amount unpaid.

In the report the Parliamentarians call on the governments of both the UK and UAE to take immediate action to protect the rights of those individuals who are already unlawfully detained as well as to engage in systemic reform. The report makes it clear that it is critical that the UK Government takes action to ensure that the rights of British citizens in Dubai, and the UAE more generally, are adequately protected. Estimates suggest that there are more than 100,000 Britons living and working there at any given time.

They conclude that, at present, those rights are not adequately protected. The report makes nine recommendations:

1. Business professionals should be made aware of these risks to make informed decisions about investments and operations in the region. The UK Government, via the FCDO, should provide a more detailed and robust set of guidance to UK nationals in warning them of the risks associated with doing business in the UAE.

2. The UAE should consider reforms to its criminal justice system to ensure it aligns with international human rights standards.

3. The UAE should ensure that foreign detainees have the right to communicate with their consular authorities without undue restrictions.

4. The UAE should actively engage with human rights organizations and legal experts to address concerns and implement recommendations.

5. The UAE should conduct a thorough review of the “No pay no go” mechanisms and Dubai Law 37 of 2009 to ensure they are not misused or improperly deployed against business professionals.

6. The UAE Government should immediately release any prisoners held improperly subsequent to the misuse of Law 37 as well as the No Pay No Go regime.

7. The UK Government should engage with the UAE authorities to address concerns related to the treatment of UK nationals in the UAE.

8. The UK Government should provide adequate support and assistance to UK nationals detained in the UAE.

9. The UK Government should take steps to ensure the release of any prisoners detained arbitrarily or otherwise unlawfully.  This should include all steps to secure the release of business people who have been held improperly as set out elsewhere in this document.

The report has been released amidst growing concern in the UK around the UAE’s attempts to buy The Telegraph newspaper.

The Panel was assembled following an approach by relatives of individuals who have been unlawfully detained in Dubai including Ryan Cornelius and Charles Ridley.

The parliamentarians conducted a detailed evidence gathering process including: submissions from human rights organisations; expert evidence from business and academic sources; oral and written testimony from victims and their families; an analysis of legal sources; press reports; and publicly available material. They were assisted by international human rights barristers, Rhys Davies of Temple Garden Chambers and Ben Keith of 5 St Andrew’s Hill, as well as Olivia Chessell, paralegal to the Factfinding Panel.

The full report can be read here.

ENDS

For questions or to arrange an interview please email nikita@nb-consulting.co