An unpaid account should be examined before a business commits to recovery proceedings. The amount shown in a ledger may include disputed deliveries, credits, interest or invoices that are not yet due. A lawyer in Dubai should establish what the debtor actually owes, which procedure applies and whether there are assets against which an enforceable result could be pursued.
The first consultation is most useful when finance staff and the person responsible for the transaction can explain the same record. Identify the contracting customer, the agreed payment date and the reason given for withholding payment. This allows the legal team to distinguish an accounting disagreement from a refusal to pay an established obligation.
Prepare a schedule identifying each invoice, its due date, the goods or services supplied and payments received. Link each entry to the underlying contract, purchase order, delivery confirmation or acceptance record. Record credit notes and deductions separately. Explain any difference between the ledger balance and the amount proposed for recovery.
Keep the complete correspondence, including complaints about quality or incomplete performance. A favourable message may lose its meaning when separated from earlier discussions. Under Articles 53 to 64 of the federal Evidence Law, electronic records and communications can constitute evidence, with rules governing their production and evidential value. Preserve original messages and attachments rather than relying exclusively on cropped screenshots.
Confirm the identity of the customer against its licence and contractual documents. Where a guarantee exists, provide its complete wording and execution details. Naming a director or shareholder in correspondence does not establish that the person owes the company's debt personally. Any claim against an additional party needs its own legal and evidential basis.
For onshore commercial proceedings, Article 33 of the Civil Procedure Code identifies territorial connections including the defendant's domicile and places connected with concluding or performing the agreement. Special rules and the actual dispute must also be considered. A creditor's preference for a particular court is not enough to establish jurisdiction.
Read the dispute clause before filing. Where the federal Arbitration Law applies, Articles 7 and 8 address written arbitration agreements and an objection raised before any request or defence on the merits. A valid and operative arbitration agreement can affect whether a court claim is admissible. Give the adviser the complete contract, incorporated terms and subsequent amendments.
Ask which limitation period applies and when it began. Different transactions can raise different questions, and a reminder or negotiation should not be assumed to preserve the claim indefinitely. Provide previous acknowledgements, part payments and proceedings so their effect can be assessed.
Article 143 of the Civil Procedure Code provides a special payment order procedure where the right is established in electronic or paper writing, is due, and concerns a specified monetary amount or qualifying movable property. It also addresses commercial instruments, with an exception for a cheque that already constitutes an enforcement instrument. The statutory conditions should be assessed before choosing an ordinary claim.
Article 144 requires a prior demand allowing at least five days for payment, served through a method recognised by the Code. The right demanded must not be less than the right sought in the petition. Proof of the debt and proof of the demand accompany the application. An informal reminder should not simply be assumed to satisfy every procedural requirement.
Although the law sets a short period for issuing the order, this should not be presented as a promise of immediate recovery. The judge may accept or reject the request, wholly or partly, and subsequent service, challenge and enforcement issues require separate attention. A material dispute about performance or valuation may require fuller proceedings.
When instructing a lawyer in Dubai, separate the principal sum from interest, contractual charges and compensation. Article 84 of the Commercial Transactions Law addresses delay interest for a qualifying commercial monetary obligation whose amount was known when it arose, subject to its provisions and any contrary agreement. It does not justify applying an unexplained percentage to every overdue account.
A settlement proposal should identify the admitted amount, payment dates, treatment of costs and consequences of default. Consider whether security is needed and who has authority to sign. Avoid releasing the original claim before the agreed conditions have been met unless that is the intended bargain.
The form of settlement also matters. Article 212 of the Civil Procedure Code recognises court approved settlement records among enforcement instruments. A private payment plan should not automatically be described as having the same enforcement status. Ask what approval or other formalities are appropriate for the agreed arrangement.
Article 667 of the Commercial Transactions Law provides that a cheque bearing the drawee's statement of insufficient or absent funds is an enforcement instrument. Its holder may seek compulsory enforcement for all or part of the amount, subject to the Civil Procedure Code. Obtain the cheque and the bank's return information, and account for any partial payment.
Criminal responsibility requires separate assessment. The law retains offences concerning specified conduct, including certain unlawful payment stopping instructions and deliberate acts preventing payment. A returned cheque should therefore neither be treated as automatically establishing a criminal offence nor described as incapable of involving one. Preserve the underlying transaction records alongside the banking documents.
The execution judge supervises enforcement under Article 206 of the Civil Procedure Code. Article 212 requires an enforcement instrument for compulsory recovery of an established, quantified and due right. Preparing that instrument and the required service documents is a distinct stage from proving the original claim.
Provide lawfully obtained information about bank relationships, property, receivables and other assets. Explain which details are confirmed. Precautionary attachment may be available under Article 247 where its conditions are satisfied, but an application requires a legal basis and supporting material. A court result cannot guarantee that sufficient recoverable assets will exist.
Ask for a written fee agreement identifying the work covered. Articles 46 and 49 of the legal profession law address written fees before work and the scope of the engagement. Clarify whether the quotation includes demands, proceedings, expert work, appeals and enforcement, and distinguish professional charges from external expenses.
The DIFC Courts recorded 341 enforcement claims with a total claim value of AED 10.9 billion in 2025. These are filing and claim-value figures for that court, not amounts recovered or onshore payment-order outcomes. A creditor must still establish the applicable procedure and consider the debtor’s available assets before estimating practical recovery.
Federal Decree Law No 51 of 2023 provides financial restructuring and bankruptcy procedures for entities and persons within its scope, with exclusions. The opening of relevant proceedings can stay individual claims and change how a creditor must pursue recovery. Obtain the actual court decision and notices rather than relying on a debtor's assertion that it is insolvent.
For restructuring, Article 95 provides for notice inviting creditors to submit their claims and supporting documents within the specified period. Record that deadline and identify any security or disputed amount. Bankruptcy proceedings are a collective process with statutory conditions, rather than a routine pressure tactic for every overdue invoice.
Not necessarily. The legal team must assess the writing, whether payment is due, the specified amount and the underlying circumstances against Article 143. Supply delivery records, acceptance evidence and any objections as well as the invoice.
No. Recovery still depends on the enforceability of the instrument, completion of the required procedures and available assets. Existing security, competing creditors and insolvency proceedings may affect the practical outcome. The recovery strategy should consider these matters before costs increase.
Give the lawyer in Dubai the contract, complete account, supporting invoices, performance records, correspondence, cheque documents and known asset information. Identify urgent notices and existing proceedings. A clear chronology helps the adviser select the procedure and explain the next decision.
Match each invoice to the contract, delivery or acceptance record and agreed due date. Record payments, credits and deductions separately and explain any discrepancy with the ledger. Keep objections and earlier correspondence so the adviser can identify the amount actually due and the evidence supporting it.
Provide the complete guarantee, the parties’ details, signatures and documents concerning the signatory’s authority. Explain any conditions, limits or changes to the underlying transaction. Ask the adviser to assess the guarantee itself rather than assume that a director or shareholder is personally liable for the company’s debt.
Dr. Hassan Elhais is a Senior Legal Consultant at Amal Al Rashedi Lawyers and Legal Consultants in Dubai. He advises on UAE family, civil, commercial and criminal law matters.
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