What can I do if my business is owed debt in Dubai?

One of the biggest challenges any business faces whether it is located in Dubai or anywhere else in the world is cash flow. The core survival and success of any business relies on a constant and steady stream of cash and the unfortunate part of this is that whilst a business owner has control over most aspects of their company, the one thing that remains out of their control to some extent is when customers or suppliers will pay.

As the UAE grows and evolves so are the laws, adapting to the ever-growing business hub the Emirates has become however the evolution of commercial disputes remains dated like most countries’ commercial laws. Steps are being taken to speed up the recovery of debts through new initiatives like the Dubai Mediation center that can help intervene and mediate solutions for debtors but the center still relies on an amicable settlement between parties however it is a cost-effective solution if the parties can reach a compromise.

Whilst the Dubai courts remain the most comprehensive authority for settling debt disputes with binding resolutions for parties the process does remain costly and time-consuming. Most creditors will avoid the court route to the extent that in most cases they would prefer to write off the debt and suffer the losses or even worse they liquidate their business.

In recent times the DIAC (Dubai International Arbitration Centre) has become a beacon of hope for some creditors. Governed in line with International standards the DIAC is a faster route to settlement however the costs can spiral depending on the case, debtor, and many other factors. Whilst a favorable outcome can be achieved in some cases further enforcement can require a Dubai court’s ruling.

As is the case in most countries the most tried and tested method for recovery of bad debt is relying on a good accredited Debt Collection Specialist. Time and time again credit collection companies are proven to be the most cost-effective and proven method of credit recovery in a timely manner. Professional credit recovery specialists have a recovery process in place that allows them to initiate communications, follow up, execute and process recovery of client outstanding dues. Since their business model is geared around recovering dues for clients, I believe this remains the most effective method for bad debt recovery.

On a final note, whilst credit recovery specialists are the best form of defense against bad debtors, I think it is important not just to select a company that is offering a NO WIN NO FEE solution. Whilst that can seem very appealing at the time, NO WIN NO FEE companies often follow a systematic approach which can often be interpreted as empty threats that yield no positive results. It is a proven fact that credit recovery companies that have engagement fee structures in place often yield faster results as they can rely on more resources that result in a timelier success rate whilst the ultimate goal for the recovery specialist is the end percentage of the success fee.

The author of this article is Debt Collection in Dubai expert, Mr. Ron Fernandes, who has 15+ years of experience in corporate debt recovery in the UAE. Nasiha DMCC is the leading and most reliable debt recovery company in the UAE. We have a 91% success rate in corporate debt collection in Dubai.

For more information about debt collection in Dubai, please call +971 (4) 576 2814 or email us at info@nasiha.ae