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Understanding the Debt Recovery Process in the United Arab Emirates

Debt recovery in the United Arab Emirates (UAE) is governed by the Civil Transactions Law, which sets out the procedures for recovering debts from individuals and businesses. The process of debt recovery in the UAE can be divided into two main stages: pre-litigation and litigation.




Pre-litigation debt recovery in the UAE involves taking steps to recover the debt before filing a lawsuit. This can include sending a demand letter to the debtor, making phone calls, or using a collection agency. A demand letter is an official notice that requests the debtor to pay the outstanding debt within a specific period of time, usually between 15-30 days. If the debtor fails to respond or pay the debt within the specified time, the creditor may proceed to the next stage of debt recovery, which is litigation.


Litigation is the process of filing a lawsuit in court to recover the debt. The creditor must file the lawsuit at the appropriate court, which will depend on the amount of the debt and the jurisdiction where the debtor is based. The court will review the case and make a ruling, taking into consideration the evidence presented by both parties.


In the UAE, the courts have the power to order the debtor to pay the debt, as well as interest and costs. They can also order the seizure and sale of the debtor's assets to pay off the debt. In addition, if a debtor has repeatedly failed to pay a debt, they may be subject to a travel ban which will prevent them from leaving the UAE until the debt is settled.


It's worth mentioning that in the UAE, a few of the emirates have Commercial Courts to handle commercial disputes. These courts are designed to handle disputes related to trade, commerce, and industry and can be a good option for the recovery of commercial debt.

As for the small claims court, it is designed to handle small claims, including debt recovery claims, and provide a quick and inexpensive way to resolve disputes.


In summary, debt recovery in the UAE involves a process of pre-litigation and litigation to recover debts from individuals and businesses. The appropriate court will depend on the amount of the debt and the jurisdiction where the debtor is based. The courts have the power to order the debtor to pay the debt, as well as interest and costs, and may also order the seizure and sale of assets to pay off the debt.


If you are a creditor and are in need of assistance in recovering a debt, it is highly recommended that you seek the assistance of a reputable law firm. Our law firm specializes in handling debt recovery cases and can provide you with the support and representation you need throughout the process, from pre-litigation to litigation. With our knowledge of the laws and court procedures in the UAE, we can help you navigate the legal system and ensure that your rights and interests are protected. Contact us today to schedule a consultation and learn more about how we can help you recover your debts.

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