How Long Do You Have to Legally File a Debt Recovery Case in Dubai?

27 June
0 Comment

It is no doubt frustrating when a customer who owes you a personal loan, unpaid invoice or commercial debt fails to make repayment, and this can really affect your other business planning or financial planning. In Dubai where business is done rapidly and internationally, it is important to understand the circumstances under which you can bring a claim over the debt.

This may be one of the most frequently asked questions: How much time should I wait till it is never too late to file a case of debt recovery in Dubai? The response would be determined by the nature of the debt and laws concerning the debt in the UAE. Let us simplify this.

The Limitation Period: What It Means

Period of limitation are the deadlines by which the creditor must file a case in court. In the UAE, under Federal Law No. 5 of 1985 (the Civil Transactions Law), the general rule provides that an action must be brought within 15 years unless there is a special law that states a lesser period.

But here's where it gets interesting and tricky.

For commercial debts, the limitation period is often 10 years, according to Article 95 of Federal Law No. 18 of 1993 (the Commercial Transactions Law). However, in practice, courts sometimes apply a shorter time frame depending on the nature of the debt.

For example:

A bounced cheque case? The timeline is just 2 years from the date of dishonour.
Unpaid salaries or employment-related claims? Typically 1 year.
Utility bills or telecom charges? These can fall under a 3-year limit.

Real-Life Example: Missing the Window

Let’s say you lent AED 100,000 to a friend in 2018 with no written contract. You waited patiently, sent reminders, had a few polite conversations but nothing happened. Now, it’s 2025. Can you still file a case?

You might- but it’s going to be complicated. If you didn’t take any legal or written steps to show that the debt was acknowledged in between, the court may not entertain your case. This is why getting legal advice early matters. If this debt had been part of a commercial contract, your window might have already closed.

Many clients come to debt collectors in Dubai only after trying for years on their own, but by then, time is often running out.

When Does the Clock Start?

In general, the statute of limitations runs from when the payment is due with no regard to when the agreement was signed. If a payment was due on January 1, 2020, and the debtor failed to pay, that’s the starting point of your countdown.

In some occasions, the countdown may be extended or even renewed by any acknowledgment of the debt by the debtor in writing, partial payment by the debtor, or mere promise to settle the debt. even a WhatsApp message from the debtor admitting that he owes a sum of money can serve to extend the time to file.

But be careful. Verbal promises are always difficult to verify and generally fall short of satisfying the courts.

What about Court or Arbitration?

Another point too many people consider: you can't just run into court immediately in every case. Depending on the contract, sometimes debts must be settled by a mediation or arbitration session before you file a claim.

If you are working with a company registered in a free zone such as DIFC, or ADGM they might have their own ways of considering things, which might have a shorter time to file.

This is why a professional Dubai debt collection agency can help reduce the burden of this process for you. They will know what paperwork is needed, when it is due, and how they can help you increase your chances.

How a Written Contract Can Save You

If there’s one tip we could shout from the rooftops, it’s this: Always get your financial agreements in writing.

Even a simple loan agreement signed by both parties can make a huge difference. It’s not just about proving the amount owed—it shows intent, terms, and acknowledgment. Courts in Dubai place a lot of weight on written documentation.

In fact, in most debt collection Dubai cases that succeed, it’s often the paperwork that seals the deal—not the amount or how persuasive your story is.

Do Limitation Periods Pause?

Yes, they can. Under UAE law, certain conditions pause (or “toll”) the limitation period. These include:

When the debtor acknowledges the debt.
When the creditor takes legal action but the case is dismissed for technical reasons.
During force majeure situations (for example, COVID-19 created temporary suspensions for some legal deadlines).

But remember: these are exceptions, not rules. Don’t count on getting more time unless a lawyer confirms it.

In short-

If you’re dealing with a debt Dubai situation, it’s essential not to delay your legal action. Whether it's a small personal loan or a large commercial dispute, understanding your legal window to file a claim is half the battle.

Many people assume they have all the time in the world. They chase, wait, remind- and by the time they seek help, they’ve run out of time. That’s where a debt collection agency in UAE like Alqada Claim Recovery Services can step in- not just to collect, but to make sure it’s done within the legal timeframe.

So, When Should You Act?

Right now.

If you think someone owes you money and they’re dodging payment, don’t wait. Even if you're not sure how strong your case is, speaking to experienced debt collectors in Dubai can give you clarity.

They can:

Review your documents.
Explain your deadline.
Guide you through legal steps.
And even attempt out-of-court settlements.

Because once the limitation period is over, it’s like the door is locked. And no matter how much you knock, no one’s answering.

Conclusion & Call to Action

Debts don't vanish overnight, but your chance to recover them can. If you’ve been struggling to recover funds, or you’re unsure about whether your claim is still valid, it’s worth seeking legal support- before time runs out.

Alqada Claim Recovery Services is here to help. We combine legal know-how with practical experience to support clients across industries. We don’t just collect- we strategize, we plan, and we act in time.

Let’s talk before the clock hits zero.

If you’d like to learn whether your claim still qualifies, feel free to reach out to our team for a quick, no-obligation consultation. We’ll help you understand your options and take the right steps- at the right time.

Because when it comes to debt collection in Dubai, timing really is everything.

Choose the right debt recovery agency is very crucial process. Alqada believes in supporting clients on each step during the Debt recovery process. There are following list of steps involved in the Debt recovery process. Follow the given below articels you can know more about recovery process visiting these links.