You've decided to hire a debt collection agency in Dubai. Smart move — the alternative is watching your invoice age into irrelevance while your debtor carries on with business as usual. But hiring the wrong agency wastes both time and money, so let's make sure you get this right.
This is a practical checklist. No theory, no filler. Just the steps you need to follow and the questions you need to ask.
Before You Start: Prepare Your Documentation
Before contacting any agency, assemble your evidence. A strong documentation package accelerates the entire process and gives the agency what they need to assess your case honestly.
Gather these documents:
Your signed contract or purchase order with the debtor. Every invoice related to the outstanding debt, with clear payment terms visible. Proof of delivery — shipping documents, completion certificates, sign-off sheets, email confirmations. All correspondence regarding the debt — emails, letters, WhatsApp messages, anything showing the debtor acknowledged the obligation or promised to pay. The debtor's company details — trade licence number, registered address, contact persons, any company officers you've dealt with.
Also helpful: Any bounced cheques (powerful evidence in the UAE). Previous payment history demonstrating the business relationship. Bank statements showing previous payments from this debtor. Any written admission of debt.
The more complete your file, the faster the agency can move and the higher your recovery probability. If an agency accepts your case without reviewing documentation first, they're not doing proper due diligence.
The Hiring Checklist: 10 Steps
Step 1: Verify UAE Licensing
The agency must hold a valid UAE trade licence authorising debt collection activities. Ask for the licence number. Verify it through the Department of Economic Development (DED) of the emirate where the agency is registered. This is non-negotiable — an unlicensed entity cannot legally represent you in the UAE.
Step 2: Confirm International Creditor Experience
Ask directly: "How many cases have you handled for creditors based outside the UAE?" The dynamics of international debt collection differ from local cases. An experienced agency understands power of attorney procedures, international communication protocols, and the cultural nuances of representing foreign companies in the Emirates.
Step 3: Understand the Fee Structure
Get the complete fee picture in writing:
Contingency rate — What percentage of recovered funds does the agency charge? Standard range is 5-25% depending on debt amount, age, and complexity. Lower rates on larger debts are normal.
Registration/upfront fees — A small registration fee (AED 500-2,000) for administrative costs is standard. Large upfront demands are a red flag.
Legal costs — If the case goes to court, what additional costs should you expect? Court filing fees, lawyer fees, translation costs, enforcement costs. These are typically separate from the contingency commission.
Success definition — What counts as "recovery"? Is the commission calculated on the total debt or only on amounts actually received? This matters more than you'd think.
Step 4: Ask for Recovery Statistics
Not the headline marketing number. Ask for recovery rates segmented by debt age: 0-90 days, 90-180 days, 180-365 days, 1+ years. Ask what percentage of cases they decline as unviable. An agency that accepts everything is either inexperienced or dishonest about its success rates.
Step 5: Assess the Legal Escalation Path
What happens when amicable collection fails? Does the agency have in-house lawyers or established legal partnerships? What's the transition process? How long does it take? Are there additional costs for the legal stage? A seamless amicable-to-legal pipeline is a hallmark of a professional operation. If the agency says "we'll refer you to a lawyer" with no clear process, you'll lose momentum — and momentum matters in debt collection.
Step 6: Evaluate Communication Standards
How often will you receive updates? Weekly? Bi-weekly? Monthly? Through what channels — email, phone, online portal? Will you have a dedicated case manager or deal with rotating staff? For international creditors managing cases remotely, communication quality is the single biggest factor in your day-to-day experience. Set expectations in writing.
Step 7: Check Multilingual Capability
The UAE is home to over 200 nationalities. Your debtor may communicate most effectively in Arabic, Hindi, Urdu, Mandarin, or any number of languages. A multilingual agency communicates with your debtor in their language, which measurably improves response rates and negotiation outcomes.
Step 8: Review the Contract Carefully
Before signing, check for: exclusivity clauses (can you use another agency simultaneously?), termination terms (how do you end the relationship if unsatisfied?), tail provisions (does the agency earn commission on payments received after the contract ends?), liability limitations, and data protection provisions.
Step 9: Understand the Power of Attorney Process
As an international creditor, you'll need to grant the agency a power of attorney to act on your behalf in the UAE. This document must be notarised in your home country and attested (apostilled or UAE embassy stamped, depending on your country). The agency should provide POA templates and step-by-step instructions. If they seem unfamiliar with this process, they haven't worked with many international clients.
Step 10: Start With a Single Case
If you have multiple debts to collect, start with one case before committing your entire portfolio. Evaluate the agency's performance — communication quality, speed of action, results — before expanding the relationship. A good agency will welcome this approach; a desperate one will push for everything upfront.
Red Flags That Should Stop You
Guaranteed recovery. No legitimate agency guarantees results. The outcome depends on factors no one controls — the debtor's financial position, documentation strength, court timelines.
No physical UAE office. Virtual offices or PO boxes only are insufficient. You need an agency with real presence on the ground — that's the entire point of hiring locally.
Reluctance to provide references. Any established agency should be able to provide references from international clients. If they can't, they either don't have international experience or their clients aren't willing to recommend them.
Pressure tactics. "Sign today or lose your case" — this is a sales tactic, not professional advice. A reputable agency gives you space to make an informed decision.
Frequently Asked Questions
How quickly can an agency start working on my case?
Once documentation and power of attorney are in order, most agencies send the first demand within 7-14 days. The POA process itself can take 2-4 weeks depending on your country's attestation requirements.
Can I hire multiple agencies for different debts?
Yes, but not for the same debt simultaneously — that creates confusion and potential liability. You can absolutely use different agencies for different cases based on specialisation and performance.
What if I don't have a signed contract with the debtor?
Recovery is still possible. Purchase orders, email confirmations, delivery receipts, and partial payment history all constitute evidence of a contractual relationship. The case is stronger with a formal contract, but the absence of one isn't necessarily fatal. A good agency will assess the evidence you do have and advise accordingly.
