What is breach of trust?
Article 453 of the Federal Decree-Law No. 31 of 2021 (Crimes and Penalties Law) imposes incarceration or a fine on anyone who embezzles, uses or dissipates funds, written instruments or other movables in a way that harms the persons entitled to them, where they were handed over by way of trust, lease, mortgage, loan for use or proxy.
The key features are that the property was lawfully handed to you for a purpose, and that you used or disposed of it in a way that harms the owner.
Who counts as holding property in trust?
The article treats as a proxy any partner in a joint property, any agent of necessity with respect to the property of the concerned party, and any person to whom an object is handed to be used for a specific matter for the benefit of its owner or of another.
That reach is why business partners, directors handling funds, agents and employees can all face a breach of trust allegation. It is also why records of what you were authorised to do are the heart of the defence.
How is a fiduciary or business breach different from theft?
Theft is taking property you had no right to. Breach of trust starts with a lawful handover and turns on what you did with the property afterwards.
In practice, disputes between partners or between an employer and a manager often begin as money disputes and are reported as breach of trust. Whether the facts amount to a crime or to a civil claim is the first question we examine.
What defences exist?
That you were authorised, that you accounted for the funds, that there was no harm to the owner, or that the matter is a civil dispute over accounts.
Approvals, emails, ledgers and bank statements decide these cases, so keep and do not alter them.
What should I do first?
Collect your authority
Contracts, board approvals, instructions and emails showing what you were allowed to do.
Do not alter or delete any records
That looks like concealment.
Prepare a simple account of the funds
Where the money went, with documents.
Take advice before any repayment offer
It can affect the case.
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Frequently asked questions
Is breach of trust the same as theft?
No. Article 453 applies to property handed to you in trust, while theft concerns property taken from its owner.
What is the penalty?
Article 453 provides incarceration or a fine. Incarceration is one month to three years under Article 70, and the minimum fine is AED 1,000 under Article 72.
Can a partner be charged?
Yes. The article treats a partner in a joint property as a proxy.
Can this be a purely civil dispute?
Sometimes. Whether it is criminal depends on the handover, the use of the property and the harm caused.
Related guides
Theft & Breach of Trust overview
The main points, the process and your first steps.
Read the overviewTheft
How the Crimes and Penalties Law defines theft, how the penalty rises with the circumstances, and what a defence looks at.
Read the guideMisappropriation of Funds
Keeping property that is not yours, disposing of mortgaged or attached assets, and holding proceeds of a crime.
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.
This page is general information, not legal advice.