What is fraud under UAE law?
Article 451 of the Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law) imposes incarceration or a fine on anyone who, by using fraudulent practice, assuming a false name or capacity, takes possession for himself or others of movable property or a written instrument, or obtains a signature, cancellation, destruction or amendment of an instrument, when the intent is to deceive the victim into handing the thing over.
It also covers disposing of a building or movable property while fully aware it is not yours or that you have no right to dispose of it, or that you had already disposed of it or agreed to dispose of it, where this harms others.
What must the prosecution show?
Deception or a false name or capacity, an intent to deceive, and that property or an instrument was obtained as a result.
That is why the documents and the messages before and after a deal matter. A failed deal alone is not fraud. The prosecution has to show the deception and the intent.
What is the penalty?
Incarceration or a fine (Article 451). Incarceration is one month to three years and the fine can be from AED 1,000 (Articles 70 and 72).
An attempt is punished by incarceration of up to two years or a fine of up to AED 20,000. If the property belongs to the State or to the authorities and entities referred to in Article 5, that is an aggravating circumstance.
What if the fraud was online?
The Federal Decree-Law No. 34 of 2021 (Cybercrimes Law) has a separate offence. Article 40 punishes illegally seizing property, a benefit or a document through fraud techniques, or by taking an alias or false identity through the information network, with imprisonment of at least one year and/or a fine of AED 250,000 to AED 1,000,000.
Which law applies depends on how the deception was carried out, and the penalties are very different, so the characterisation of the facts is the first thing to examine.
What should I do first?
Keep every message and document
Contracts, transfers and chats before and after the deal.
Do not contact the other side
A call can be reported as pressure.
Prepare a timeline of the deal
What was said, promised and paid, and when.
Call us before any questioning
Statements about intent carry weight.
Call us on +971 50 653 1334 or message us on WhatsApp. We answer at any hour.
Frequently asked questions
Is a failed business deal fraud?
Not by itself. Fraud requires deception and an intent to deceive (Article 451).
What is the penalty for fraud?
Incarceration or a fine (Article 451), with attempt punished by up to two years or a fine of up to AED 20,000.
Is online fraud treated differently?
Yes. Article 40 of the Cybercrimes Law provides imprisonment of at least one year and/or a fine of AED 250,000 to AED 1,000,000.
Can I be charged for selling something twice?
Article 451 covers disposing of property you have already disposed of or agreed to dispose of, where it harms others.
Related guides
Financial Crime overview
The main points, the process and your first steps.
Read the overviewBusiness Fraud
How allegations against directors, partners, employees and finance teams are charged under the UAE's fraud, breach of trust and forgery provisions.
Read the guideInvestment Fraud
What the law says about raising money from the public without a licence, fictitious investment portfolios and schemes that pay old investors with new money.
Read the guideSources
Source: Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active and last updated on 7 September 2026. The Arabic text prevails over translations. Source: Federal Decree-Law No. 34 of 2021 (Countering Rumours and Cybercrimes), official English text on the UAE Legislation portal, checked 9 October 2026. The portal lists the law as active and last updated on 4 April 2024, with one amendment. The Arabic text prevails over translations.
This page is general information, not legal advice.