If a supplier outside the UAE wishes to file a case against a UAE-based customer for non-payment, they must follow certain legal steps to ensure the claim is valid under UAE law. Here is an overview of the process:
- Review the Contract and Jurisdiction Clause
- Check the jurisdiction clause in your contract to determine if the UAE courts have jurisdiction over disputes.
- If the contract specifies arbitration or a foreign court, you may need to follow that route unless explicitly permitted to bring the case in the UAE.
- Attempt Amicable Settlement
- Before initiating legal action, UAE law encourages resolving disputes amicably.
- Send a formal demand letter through a UAE-licensed lawyer to the customer, requesting payment within a specific timeframe.
- Engage a UAE-based Lawyer
- Non-residents must appoint a UAE-licensed legal representative to file a case in UAE courts.
- The lawyer will help translate and notarize required documents in Arabic, as Arabic is the official language of the courts.
- File a Case in the UAE Courts
- If the amicable settlement fails, your lawyer can file a civil case in a UAE court.
- The claim is typically filed in the court of the emirate where the customer is based or where the transaction occurred.
- Provide Necessary Documents
- Submit all relevant documents, including:
- Invoices and proof of the unpaid amount.
- Contracts or agreements.
- Correspondence showing efforts to recover the payment (e.g., emails, letters).
- Any documents that show the delivery of goods or services.
- Consider Arbitration (if Applicable)
- If your contract includes an arbitration clause, you must file the case with the agreed arbitration center (e.g., Dubai International Arbitration Centre, DIFC-LCIA).
- Arbitration awards can be enforced in the UAE courts under the UAE Arbitration Law and the New York Convention (if international).
- Enforcement of Foreign Judgments
- If you have already obtained a judgment from your home country, you may need to enforce it in the UAE.
- Enforcement depends on reciprocity agreements between your country and the UAE or specific treaties.
- Prepare for Court Fees and Timelines
- Be aware of court fees (percentage of the claim amount) and timelines.
- Cases may take several months or more, depending on complexity.
- Alternative Options
- Hire a debt collection agency: Some agencies specialize in recovering debts in the UAE without litigation.
- Explore informal resolution via UAE Chambers of Commerce or trade bodies.
Important Notes:
- Ensure your legal documents are authenticated and legalized (including through the UAE Embassy in your country).
- Any judgment issued by UAE courts can be enforced locally through asset seizure or other means.
