How UAE’s Civil Procedure Law Reforms Are Reshaping Debt Collection in Dubai

13 June
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Imagine, you have loaned out an enormous sum of money, and the borrower has simply vanished. All you get to do is be shadow chasing in the court system with much paper work, long proceedings, and obsolete procedures. Assume now that the laws are overnight changed so that that chase becomes much easier and more rapid. It is what the recently amended Civil Procedure Law of the UAE is meant to do especially when it comes to debt collection in Dubai.

If you are a businessman, an investor, or just an individual trying to recover some unpaid dues, there are good chances of these changes directly impacting your debt recovery in Dubai. So, let us break these down for you in a simple manner-

What is UAE Civil Procedure Law?

Before we get under the hood, let's stage the scenario. The Civil Procedure Law of UAE regulates the civil and commercial dispute resolution in courts. In layman's terms, it regulates the how, when, and where the filing of lawsuits, execution of judgments, issuance of notices, and enforcement of legal decisions occur. One may view it as a sort of an engine of all operations of the justice mechanism.

In recent years, this law has undergone a series of reforms, with the latest significant wave arriving in late 2023 under Federal Decree-Law No. 42 of 2022 and Cabinet Resolution No. 75 of 2021, along with additional updates into 2024. These changes were introduced to streamline court procedures, digitize filings, and, most importantly for our discussion- simplify debt recovery.

Speeding Up the Wheels of Justice

One of the most noticeable changes is the introduction of shorter deadlines and faster hearings, particularly through the Small Claims Courts. Now, disputes involving lower-value debts can be resolved in as little as 15 days from the date of filing. This is a game-changer for creditors who used to wait months (if not years) to get a judgment.

Let’s take an example:

Ali, a supplier of construction materials in Dubai, had an outstanding invoice of AED 75,000 unpaid for nearly a year. Under the previous procedures, initiating and finalizing court action would have cost him significant time and legal expenses. But thanks to the updated law, Ali filed his claim electronically, got a court hearing within days, and received a ruling in less than three weeks.

Hello, Digital Era: Electronic Filing & Notifications

Another major leap forward is the emphasis on electronic systems. Now, most court procedures, from filing cases to submitting evidence and issuing summons, are done online. For debt collection Dubai efforts, this reduces the back-and-forth and increases efficiency.

Key benefits of electronic court services:

Faster filing and registration of claims
Online submission of supporting documents
Digital notifications to debtors via SMS or email
Real-time tracking of case progress

Even serving notices, which used to be a hassle involving manual delivery, is now allowed via email, SMS, and other digital platforms, making it harder for debtors to simply “not respond” and buy time.

Introducing Executive Judges: Less Talk, More Action

In a move that many creditors are celebrating, the recent amendments have empowered Executive Judges to issue and enforce judgments more swiftly—especially for debt-related claims backed by written contracts, bounced cheques, or unpaid invoices.

So, instead of waiting for full-blown trials, the Executive Judge can look at the evidence and issue an execution order on the spot. If you’re working with a reputable Dubai debt collection agency, this shortcut can save you a huge amount of effort.

Court Fees and the Risk of Losing

Of course, faster justice doesn’t come for free. The updated procedures also bring changes in court fees and responsibilities, especially for losing parties. The courts may now require upfront payments for certain types of claims, and the loser often bears the cost of litigation.

It’s worth noting that debtors now face more pressure to settle quickly, thanks to these changes. This has encouraged many to resolve their dues before a court case is even initiated—something that debt collectors in Dubai have observed increasingly in recent months.

One Law to Note: Cheque Execution Gets a Boost

The notorious “bounced cheque” situation in the UAE is a big part of the debt puzzle. The new law now allows creditors to initiate execution directly on bounced cheques without going through a lawsuit, as long as the cheque meets basic legal criteria. This alone has made a debt collection agency in UAE far more effective in resolving such matters promptly.

So if someone handed you a dud cheque, there’s good news, you now have a strong tool to claim what’s yours, faster and with fewer legal roadblocks.

It’s Not All Sunshine: Things to Watch Out For

While the reforms are definitely creditor-friendly, debtors also now have stronger tools to file appeals or request payment installment plans under certain conditions. That means debt collectors in Dubai need to be even more strategic, using documentation and legal support effectively.

Moreover, the courts are becoming stricter in reviewing evidence. If your documentation is incomplete, or if you're working with inexperienced advisors, your claim may get delayed or rejected.

Why This Matters More Than Ever

The reforms could not have come at a better time in a region such as the UAE where the business deals are swift and likely to be on credit-based. Are you a landlord after rent, a trader after unpaid bills, an investor after contractual payments, whichever it is, the new procedures can seriously shift your hit rate, as long as you understand how to go about them the right way.

And that's exactly where partnering with experienced professionals makes the difference. The right debt collection agency in Dubai can assist you in making claims in the right manner, documentation, pursuing claims legally, and making sure that no red tapes are involved in execution.

Finally- “The Law Has Evolved-Have You?”

What worked five years ago in the world of debt collection in Dubai, today may or may not work. As legal changes continue to facilitate faster, smarter, and more efficient results, you should change your approach, as well.

Are you finding it hard to get recoveries with respect to the overdue payments, or does your business have outstanding receivables, then you should not wait until the debt goes cold.

Ready to Recover What’s Yours?

Whether it is bounced cheques, unpaid bills or difficult debtors, at Alqada Claim Recovery Services we have a team of professionals ready to assist you put your options in perspective, prepare convincing claims and pursue equitable relief accordingly.

If you are currently having problems with debt collection in Dubai or would like to work with a credible debt collection agency in Dubai, call us.

Call Alqada Claim Recovery Services now and take back your comfort-because every dirham matters.

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