Recent Kobre & Kim Victory Enhances Creditors’ Ability to Locate Assets in the Middle East
Kobre & Kim secured a ruling in the DIFC Court, which broadens creditors’ tools to locate debtor assets, allowing examinations of directors and officers, including former and foreign-based individuals, and permitting inquiries into the means by which a debtor might satisfy a judgment, including potential asset transfers and causes of action. The decisions strengthen post-judgment discovery and reinforce the DIFC as a creditor-friendly venue for cross-border enforcement.
December 11, 2025
Debtor examinations have always been a powerful tool in the creditor’s arsenal. But in some jurisdictions, the scope of examinations is curtailed to current directors and officers in the jurisdiction, preventing interrogation of those behind nominee holding structures or who are overseas.
Kobre & Kim recently secured a significant victory for creditors’ rights in the Dubai International Financial Center (DIFC) Courts, obtaining rulings from both the DIFC Court of First Instance and Court of Appeal that confirm who can be ordered to give evidence about the debtor’s means and other information to enforce a judgment or order.
Providing relief to creditors pursuing debtors who claim to have limited or no assets, the Court confirmed that directors and officers, including former or de facto officers (regardless of whether they are in the DIFC), may be ordered to attend court to give evidence.
The Court further authorized a wide-ranging enquiry into the means by which the debtor might satisfy the judgment debt, even if that meant potentially identifying assets in the form of causes of action against third parties or assets held on trust. This also represents a broader reach than comparable rules in some other common law jurisdictions. The Court’s ruling highlights the importance of post-judgment examinations as a versatile enforcement tool, enabling creditors to trace funds, uncover asset transfers, and plan further recovery steps.
By extending the scope of post-judgment discovery to those with de facto control or prior knowledge of debtor assets, the decision reinforces the DIFC’s role as an international creditor-friendly jurisdiction.
