Legal Debt Collection Dubai: Court Procedures & Enforcement

Legal Debt Collection Dubai: From Notarised Demand to Court Enforcement

The Legal Framework

Legal debt collection in Dubai operates under UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) for commercial claims and the UAE Civil Code (Federal Law No. 5 of 1985) for civil claims. Court proceedings are governed by the Civil Procedures Law (Federal Law No. 11 of 1992, as amended). All onshore proceedings are conducted in Arabic — meaning documents in other languages require certified translation by a UAE-licensed translator.

This isn't bureaucratic formality. A translation error in a court filing can delay proceedings by months. Working with a Dubai-based law firm that handles Arabic drafting internally produces faster, more accurate filings.

Step-by-Step Legal Process

Step 1 — Notarised legal notice. Before filing any court proceeding, the creditor must serve a formal demand through a UAE notary public. The notice is delivered to the debtor's registered address or known place of business. This step satisfies the legal prerequisite for court proceedings and starts the clock on the debtor's obligation.

Step 2 — Reconciliation and settlement committee. Dubai Courts require many commercial disputes to pass through a reconciliation committee before proceeding to trial. This is not mediation in the Western sense — it's a structured settlement attempt with a committee appointed by the court. If settlement fails, the committee issues a certificate allowing the case to proceed.

Step 3 — Filing the claim. Commercial claims are filed electronically through the Dubai Courts' e-filing system. Filing fees are proportional to the claim value — approximately 7.5% of the claim amount, capped at AED 40,000 (approximately USD 10,900). The debtor is served and has 10 days to respond.

Step 4 — Hearing and judgment. Dubai's commercial courts typically schedule 3-5 hearings over 3-6 months. For straightforward documentary claims, judgment can be obtained in 2-4 months. Complex cases: 6-12 months.

Step 5 — Enforcement. Once judgment is obtained, enforcement options include: bank account seizure (the court issues an order to all UAE banks), salary attachment (up to 25% of the debtor's salary), travel ban (preventing the debtor from leaving the UAE), and asset seizure through the court-appointed bailiff.

DIFC Alternative

For claims within DIFC jurisdiction (contracts specifying DIFC courts, or debtors with DIFC registration), the DIFC Courts offer English-language proceedings, common-law procedure, and international enforcement through reciprocal arrangements. DIFC judgments can be enforced onshore through a simplified ratification process.

Legal debt collection in Dubai is procedurally specific but effective. The combination of notarised demands, structured reconciliation, and powerful enforcement tools — particularly travel bans — produces results that exceed most Gulf jurisdictions.