Do you have any outstanding credit collection in The United Arab Emirates? Rely on Invenium!
A credit collection action in the United Arab Emirates must consider the ordinary period of limitation, that according to the federal law n. 5 del 1985, lasts 15 years. In the United Arab Emirates, the interruption of the prescriptive terms becomes official only with the notification of the act started with the judgment. The formal notice has any result in passage of time.
Considering the Arabic scenario, an out-of-court credit collection strategy is highly recommended. In fact, the court process takes a long period of time and need specific documents. Precautionary measures are always taken in order to take care of the Clients’ outstanding credit.
- Restraining order for freedom to travel
- Imprisonment of the debtor
UAE law envisages a summary proceeding: the order for payment. This procedure can be activated by those who are creditors of a liquid sum of money, which must issue the debtor formal notice to comply by registered letter, giving a deadline of 5 days to comply. After which, the creditor may apply for an order for payment, providing written a proof of the right invoked. The order for payment measure must be issued by the court within 3 days of the request and notified to the debtor within 30 days of issue.
Before taking legal action in commercial matters, it is compulsory to apply to a Mediation Committee, appointed by the Ministry of Justice, which attempts mediation between the parties. Should this fail, it is possible to initiate legal proceedings by filing an application (Plaint) with the clerk of the court upon payment of the registration fee of 4/5% of the value of the case.
The language of the proceedings is Arabic and all documents filed must be translated by an authorised official translator. Considering the Arabic scenario, the best option is to rely on a company focused on international credit collection as Invenium. Our local collaborator can intent specific out-of-court credit collection strategy in the United Arab Emirates.