Insights On International Debt Recovery


As per a survey done in 2018 on Global Ranking in Debt Collection, the United Arab Emirates was one of the most challenging places for debts recovery. Debt or borrowed money enables start-ups and entrepreneurs to invest in this “land of Opportunities”. The country has over 89% of expat population and just 11% of UAE nationals. To accommodate the influx of over 200 nationalities, and upkeep Dubai as the world’s favourite economic hub, the Legal framework of the land is robust, comprehensive, and steadily evolving.

Debt and debt recovery provisions have existed since the inception of commercial activities by mankind. Lending and borrowing are omnipresent and minimally necessary to the sustenance of any economy. In every country there are laws to regulate debt repayment as debt is a worthwhile GDP contributor. Hence, there are laws to regulate debt repayment in every country and not abolish it. Over the centuries, both commercial activities and commercial laws have evolved along the way to pave way for globalization.

The horizons of UAE’s legal landscape have expanded to encompass judicial as well as quasi-judicial remedies and recovery methods for the creditors. As a matter of fact, the ardent development of numerous debt recovery agencies and receivables management firms essentially stems from the nature and specific needs of the migrant dominant populace. The importance of associating a local firm that understands the UAE legal framework cannot be emphasised enough. Knowing your viable options is a wise move before getting entangled in lengthy processes. The debt recovery solutions available are a formidable alternative to the legal procedures and have considerably reduced the expenses incurred and the timeframe involved in the pursuit of collecting past due payables from defaulters.

Recovering an unpaid invoice can be an extremely time-consuming process, with little guarantee that you will successfully retrieve your entire claim amount. No Cure No Pay is a type of Salvage arrangement where the Collection agency receives no commission if the debts are not even partially recovered. This mitigates the creditor’s financial risk of losing more money and makes debt recovery services very flexible, pragmatic, and cost-effective.

Collection practices in Dubai:

Practically speaking Litigation should be the last resort. It is wise to weight your options first. Debt Collection in the UAE can be quite challenging due to the lack of specialized financial litigation courts. All financial matters fall under civil cases and burden the Civil Courts. The practice of laws around Insolvency, Bankruptcy and Financial restructuring are arduous by their very nature. Additionally, any appeal to the higher court is contingent upon the fulfilment of stringent conditions such as violation or erroneous interpretation of the law and must have a high value to be evaluated.

Moreover, Court cases are expensive right from case registration to execution with the steep expenses of lawyers, court fees, legal translations, and documentation work, among others. As litigation involves high costs and resources, often people prefer to write-off accounts when there are options to explore.

It is always better to adopt for other effective methods before giving up or giving in to Litigation. Creditors have the amicable settlement options like debt collection agencies or firms providing legal services with in-house collection department. From ongoing receivables management to negotiating settlements of ageing debts, the right move for a commercial entity is to partner with a reputed firm to handhold on all activities from receivables management to litigation like a one-stop shop.

Lawgical Debt Collection and Recovery Process:

Our time-tested and cost-effective multi-stage pre-litigation process is managed by a team of expert debt collectors and legal officers.

We follow a stringent and a comprehensive process to maximise the chance of recovery of your funds by the following methods:

  • Thorough review and analysis of the case file by our legal experts including all documentation, contracts (if any) and all communications conducted between the Client and the debtor.
  • Introductory email to the debtor notifying them about the case and that it has been handed over to a legal firm, to create pressure on the debtor.
  • Phone calls by our Legal & Collection Specialists to the concerned person/ decision-maker in a professional manner to understand the state of finances as well as the debtor’s intention of repayment.
  • Rigorous follow-ups by emails and phone calls based on the response of the debtor.
  • Physical visits to the debtor’s premises by our local PR team for further legal pressure on the debtor and to discuss settlement possibilities.
  • Issuing a warning letter to the debtor (if required).
  • Facilitating settlement by explaining legal consequences to the debtor and urging them to make payment in instalments or PDC cheques or with an upfront discount on lump sum payment as confirmed by the Client.
  • Sending legal notice to the debtor (if required).
  • Drafting a settlement agreement with mutual consensus of the Client and the debtor.
  • Consistent follow-up via calls and visits until maximum recovery and collection of the debt.

International debt collection:

Apart from being a debt recovery agency, we also serve as a corporate law firm in Dubai, offering bespoke legal solutions internationally.

There is no need to worry if your debtors are in other countries. At Lawgical Group, we specialize in solutions that are customised to individual requirements. We are a global association run by dedicated advocates, lawyers, & commercial legal consultants and counsels. Our global outreach has seen us serve individuals in over 130 countries. In fact, this lowers your costs and eliminates the need for working with two companies separately for debt collections & for legal actions.

Whether you have a debtor in the Europe, Asia or anywhere globally, our debt collection specialists and lawyers cover it all. For international claims also we have the cost-effective arrangement of No Cure No Pay. Our native debt collection specialists and lawyers can speak the same language as your debtor. Since they have the knowledge and experience with local business processes and legal bodies, they know how to approach your debtor and retrieve your receivables.


Debt recovery collection process is a universal process for the dealing with your unpaid invoices. Although it might not be the ultimate guarantee in debt recovery, yet the chances are much higher when compared with other judicial proceedings for recovering the dues. It is important to note that over time such methods have become common practise in the industries such as construction, building materials trading, general trading, major industries involved in manufacturing, supplying etc.; where credit sales is the prevailing norm and hence the debts is high. Here, it is suggested to opt for effective methods which have less cost and more returns.

If you need a cost-effective, competent service for international debt collection in the UAE that gets results, call us right now to get your income flowing again!

Leave a Reply


Powered by WhatsApp Chat

× How can I help you?