ARTICLE
2 January 2020

In The UAE, Compensation Is Divided Into Two Categories:Tort And Contractual Liability

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Dr. Hassan Elhais

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Dr. Hassan Elhais, a long-standing member of the prestigious Amal Alrashedi Lawyers & Legal Consultants, is a renowned legal consultant in the UAE, specializing in family law, criminal law, civil law, company incorporation, construction law, banking law, inheritance law, and arbitration. Dr. Elhais has gained wide recognition in the country, winning numerous awards and accolades. He was declared the Legal Consultant of the Year in 2026 by Leaders in Law. He was also elected as the co-chair of the ‘Relocation of Children Committee’ of the International Academy of Family Lawyers (IAFL), a worldwide association of practicing lawyers, widely regarded as the most experienced and skilled family law specialists in their respective countries. Dr. Hassan Elhais’s continued recognition in the 2025 Chambers and Partners rankings for Family/Matrimonial services to High-Net-Worth individuals in the UAE from 2022-2025.
Compensation is something awarded to a person in recognition of loss, suffering or injury. But in the UAE, it is divided into two: Tort and Contractual liability.
United Arab Emirates Litigation, Mediation & Arbitration
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Compensation is something awarded to a person in recognition of loss, suffering or injury. But in the UAE, it is divided into two: Tort and Contractual liability.

Torts are civil wrongs that unfairly causes suffering, loss or harm resulting in legal liability for the person who commits the offense. Hit and run cases and car accidents are the most common example for this.

"When setting the compensation, the judge will consider several things: physical damages - has the victim sustained any injuries; has he or she gone to the hospital; moral damages - has that person gone through any pain, how is he feeling emotionally; and financial damages - has the victim lost his job, will he be able to work again, was he supporting children."

Diya or blood money, is a penalty for death and not a compensation, whether willfully or by an accident. Minimum fined imposed for this by the court is Dh 200,000 which can be higher depending on the circumstances or lessen if found to be in any way to be responsible on its own death. I had a case where my client become a sterile because of the accident, which is considered to equal death and awarded with Dh 200,000. Lawyers for this case has to show to the judge how it damaged and affected the client's life.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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