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Debt recovery and Debt management in Dubai

The legal procedures designed to recover the debts are well regulated in Dubai. Debt recovery is a process to pursue outstanding payment from the debtor. Dubai has developed several procedures to facilitate debt recovery in an efficient and timely manner.

Debt recovery challenges

There are challenges involved in collecting outstanding debts. A few of them are listed below.

  • Lack of responsive communication
  • Unfamiliar with the right measures
  • Lack of knowledge

Procedures for Debt Recovery

Initial stage:

A creditor can issue a pre-action letter. This letter is important as it sets out the outstanding obligations of the debtor. This pre-action letter sets out a strict deadline for payment of debt and sometimes an invitation to meet and discuss and reach into a settlement

Amicable settlements


Negotiations with the debtor are the best attempt to reach into an amicable settlement before resorting to any litigations. Both parties should work diligently to assess and reach a mutually acceptable resolution. The debtors could also end up paying late fees or interest on outstanding debts after the settlement.


The parties may opt for arbitration to solve the disputes related to debt recovery. The arbitrator hears the evidence brought by both sides and makes a decision which is binding on both the parties.

Reliefs provided in the settlement

  • Providing extended payment terms
  • Offering discount
  • Reducing the debt amount 

 Judicial proceedings in debt collection in Dubai:

Debt recovery by court procedure is another option to claim outstanding dues. A creditor can file a civil case which may proceed with normal litigation before the court.

Reliefs provided by the court for creditors:

  • Attachment of debtor’s movable property
  • Attachment of stocks and bonds
  • Sale of real estate property 

All You Need to Know About Debt Recovery Procedures in the UAE

Risks involved in debt recovery:

When considering the debt recovery process, one must also consider the following facts:

  • Impact of delay and cost
  • Risk of not achieving a positive outcome
  • Considering the financial status of the debtor.

Preventive measures

Following measures should be considered before providing a debt recovery facility:

  • Having a well-drafted contract and strong credit control.
  • Addressing the payment terms and conditions
  • Including dispute resolution clauses can avoid lengthy dispute procedure later on.
  • Send reminders if the payment is late and obtain regular confirmations from the debtor.
  • Maintaining records of attempts to recover outstanding debts is useful for court actions or arbitration proceedings.

HHS Lawyers have a professional and experienced team to handle debt recovery cases. Our intention to gives you result-oriented services for debt collection. If you are looking for debt recovery services contact us for further consultation.

Hazim Darwish

Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Hazim Darwish also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators.