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Compensation is the monetary sum a court awards to a party to make good a harm caused by another's breach of contract or wrongful act. UAE law recognises two core components: actual damages (damnum emergens — the loss the claimant actually suffered, including direct expenses and consequential loss) and loss of profit (lucrum cessans — gains the claimant would have earned but for the breach or harm), plus moral damages for non-material harm where applicable. To be recoverable, loss must be proved, must be a direct consequence of the defendant's act, and — for contractual cases — must have been foreseeable at the time of contracting unless the breach was in bad faith. Courts may apply statutory interest on monetary awards from the date of filing or judgment.