Dubai Court of Cassation on Monday referred the extradition case against British hedge fund trader Sanjay Shah back to the appeal court to be heard by a new panel of judges.
Last month, Dubai Court of Appeal refused Denmark’s request for the extradition of Mr Shah, over a lack of original official documentation.
The following week, Dubai's attorney general Essam Issa Al Humaidan appealed against the ruling, which allowed Sanjay Shah to remain in the emirate, to the Court of Cassation.
This is the highest court in the three-tier system.
In a hearing on Monday, the court said the initial ruling was flawed in terms of legal procedures as it lacked the signature of the chief of the court that issued the verdict.
The court referred the case back to the appeal court.
“We will be representing Mr Shah in the next stage of proceedings, the Court of Appeal, which will consist of a different panel of judges to those that have been involved in proceedings so far,” said Ali Al Zarouni, Mr Shah's lawyer.
“Both we and Mr Shah have full confidence in the legal system of the UAE.”
Mr Shah, a British citizen who lived on The Palm Jumeirah, is wanted by Danish prosecutors over an alleged $1.7 billion tax fraud.
He is accused of being the central player in a scheme in which foreign businesses pretended to own shares in Danish companies and claimed tax refunds for which they were not eligible.
In January, Mr Shah, denied the charges and said he was operating within Danish law.
An international warrant for his arrest was received by Dubai Police on January 7 and he was arrested five months later in the emirate's Al Rafaa district.
The arrest came after the signing of an extradition agreement between the UAE and Denmark in March.
Separately, judges in Dubai presiding over a civil lawsuit filed by the Danish government ruled that Mr Shah must repay $1.25bn to the Danish state.
