Sharjah court lifts arrest warrant for Gulf national over debt case

A Sharjah Civil Execution Court cancelled an arrest warrant against a Gulf national who owed more than Dh2 million to a creditor.

The court took this action after the debtor provided evidence that the Dubai Courts accepted his application for insolvency. The legal dispute began in October 2025 when the Sharjah Court of First Instance ordered the debtor to pay the outstanding debt plus 5 per cent annual interest.

After the debtor failed to pay the amount within a seven day deadline in December 2025, the court issued an arrest and apprehension order. The creditor also requested that the court seize the debtor's bank accounts, real estate, vehicles, and shares to recover the funds. The debtor requested a suspension of the arrest proceedings in March 2026 while his insolvency case was being reviewed in Dubai.

While the court initially rejected this request, it reversed its decision once the debtor submitted the necessary documentation. Legal representative Alaa Nasr explained that insolvency proceedings provide debtors with protections while a court assesses their financial position. These protections include the suspension of judicial enforcement on assets and the stopping of late payment interest. During this period, a court appointed trustee supervises all financial claims to verify what creditors are owed.