UAE court orders man to repay Dh919,199 after defaulting on Islamic loan
An Al Ain court has ruled against a man who defaulted on a loan obtained from Abu Dhabi Islamic Bank (ADIB). The man, identified only as 'the defendant', was ordered to pay a substantial sum after failing to meet his repayment obligations under the Murabaha contract templates he agreed to. The loan, worth Dh958,332, was granted with a profit rate of 5.7 percent. The defendant agreed to monthly instalments of Dh12,609 but missed 73 out of 76 payments. The court found him in breach of his contract templates and ordered him to settle the full outstanding amount, including the principal amount of Dh919,199, along with case fees, expert charges, and legal costs. The court's decision comes after the defendant stopped repaying the loan after the third instalment, leading to a significant financial penalty. The Al Ain court's ruling serves as a reminder of the importance of fulfilling contractual obligations, as the defendant's failure to repay the loan resulted in a substantial penalty, even with the supreme court's oversight.
