What Are the Time Limits for Debt Collection in Dubai?
In Dubai, debt collection is subject to specific time limits known as the statute of limitations . This is the legal period within which a creditor must initiate action to recover a debt. Once this period expires, the debtor can raise a time-barred defense, and the court may refuse to hear the case. Understanding these time limits is essential for anyone involved in debt recovery to avoid losing their legal rights due to delays. 1. General Time Limit for Civil Debt Collection The standard time limit to file a debt collection claim in Dubai is 15 years under the UAE Civil Code. This applies to most contractual obligations, including unpaid loans, invoices, and commercial agreements. However, exceptions exist depending on the nature of the debt. 2. Shorter Limitation Periods for Specific Cases Commercial debts (e.g., between companies or involving commercial transactions): 10 years Labour-related debts : 1 year from the date of termination or dispute Cheques and pro...