In a significant legal decision, the Dubai Civil Court has mandated an Arab national to repay Dh1.35 million in initial investment capital to his former business partner. The dispute centered on a car trading venture where the defendant argued that the debt should be considered settled since he had already distributed over Dh1.1 million in profits to the investor. However, the court firmly rejected this defense, establishing a vital precedent that clarifies that profit distributions are legally distinct from the original principal and do not absolve a manager of the obligation to return the seed money upon request.

The case relied on digital evidence, specifically WhatsApp records, which proved the funds were intended as a returnable investment rather than a gift or offset. Finding in favor of the plaintiff, the judge ordered the full repayment of the Dh1.35 million capital. Furthermore, the court imposed a 5 percent annual interest rate on the debt, accruing from the date the lawsuit was initiated, and held the defendant responsible for all associated litigation costs, reinforcing the necessity of clear financial accountability in business partnerships.