Collection Agency in Dubai: How to Choose the Right Partner
Collection Agency in Dubai: The Selection Criteria That Actually Matter
What to Look For
Dubai has hundreds of entities offering debt collection services — from licensed agencies with court access to consultants who send demand letters and stop there. The difference between these operators determines whether your claim gets resolved or sits in an inbox for months.
DED licensing. A legitimate Dubai collection agency must be licensed by the Department of Economy and Tourism (DED) — formerly the Department of Economic Development. This licence authorises the agency to conduct debt collection activities within Dubai. Unlicensed operators may collect payments but cannot represent creditors in court proceedings or serve formal legal notices.
Arabic legal capability. Dubai's onshore courts operate exclusively in Arabic. If the agency outsources translation, expect delays and errors. If the agency drafts Arabic legal documents internally, proceedings move faster and filings are more accurate.
Court access and legal representation. The most effective Dubai collection agencies have in-house legal teams or exclusive partnerships with licensed UAE advocates who can file court proceedings, attend hearings, and execute enforcement orders. An agency that can only send demand letters has no credible escalation path.
DIFC knowledge. For international claims or contracts specifying DIFC jurisdiction, the agency must understand DIFC court procedures, filing requirements, and the DIFC-onshore enforcement interface. This is specialised knowledge that many Dubai collection agencies lack.
Fee Structures in Dubai
Contingency (no win, no fee): typically 15-25% for amicable collection, depending on claim size and age. This is the standard model for commercial claims.
Legal costs (separate): court filing fees (approximately 7.5% of claim value, capped at AED 40,000), translation costs (AED 100-500 per page), notary fees (AED 500-2,000), and advocate fees (AED 10,000-50,000 depending on complexity). These should be disclosed and pre-approved before any filing.
Combined packages: some agencies offer all-inclusive pricing that bundles amicable and legal phases. Transparency on what's included is essential — particularly regarding court filing fees and enforcement costs.
Red Flags
Guaranteeing recovery percentages (no agency can guarantee outcomes). Requesting large upfront fees before any collection activity. Unable to name their licensed UAE advocate. No track record with Dubai Courts or DIFC Courts. Operating without a DED licence.
The right Dubai collection agency combines local licensing, Arabic legal capability, court access, and jurisdictional expertise across Dubai's complex regulatory landscape. The wrong one sends letters and hopes for the best.
