Introduction

Commercial agency law No.3 0f 2022 play a crucial role in regulating business practices and protecting the interests of contracting parties. In this article, we will delve into the key clauses of a commercial agency law, highlighting the importance of registration, contract validity, dispute resolution, contract terms, multiple use of agents, entitlement to agent commission, and the procedures for application, rejection, amendment, and deletion of registrations in the Commercial Agencies Register.

Registration in the Commercial Agencies Register

The foundation of a legitimate commercial agency business lies in its registration in the Commercial Agencies Register maintained by the Ministry. Practicing commercial agency activities within the State is restricted to those entities listed in the register. Any commercial agency not listed in the register is considered invalid. This provision emphasizes the significance of proper registration to ensure compliance with the law.

Commercial Agency’s Validity

To establish a valid commercial agency, the agent must be engaged by the original principal through a written and documented contract. Additionally, the commercial agency itself must be listed in the Commercial Agencies Register. This requirement underlines the importance of formalizing the relationship between the parties involved and ensuring compliance with the law to maintain the validity of the commercial agency.

Commercial Agency Contract

A commercial agency contract should be based on the common interests of the contracting parties. Any provisions contrary to the law are deemed invalid. Furthermore, in case of disputes arising from the commercial agency contract, the courts of the State have jurisdiction to hear and resolve such conflicts. This provision highlights the necessity of aligning contractual terms with the provisions of the law and provides a clear mechanism for dispute resolution.

Contract Term

When the commercial agency contract includes provisions for the establishment of showrooms, commodity stores, or maintenance and repair facilities, the contract term is set at five years, unless otherwise agreed upon. This clause establishes a standard duration for contracts involving physical infrastructure, promoting stability and predictability in commercial agency relationships while allowing flexibility for alternative agreements.

Multiple Use of an Agent or Distributor

An original principal can engage the services of a single agent for a specific territory, and depending on the scope of the commercial agency, may seek the assistance of additional agents within one or multiple emirates. However, the distribution of commodities and services subject to the commercial agency should remain exclusive to the designated territory. Similarly, the agent may utilize the services of a distributor within the emirate(s) covered by their commercial agency. This clause facilitates the expansion of commercial agency activities while maintaining territorial exclusivity.

Entitlement to Agent Commission

The agent is entitled to receive commission for transactions concluded by the principal, either directly or through intermediaries, within the designated territory. This entitlement applies even if the transactions are not a direct result of the agent’s efforts. This provision recognizes the agent’s contribution to the principal’s business and ensures fair compensation for their role in facilitating transactions within the designated territory.

Submission of the Application for Registration

To initiate the registration process, an application must be submitted to the Ministry, accompanied by substantiating documents, including a copy of a valid business license and a copy of the attested and legalized commercial agency contract. This clause outlines the required documentation and establishes the Ministry as the authority responsible for reviewing and processing applications for registration.

Consideration of the Application for Registration

The Ministry is obliged to review the application for registration in the Commercial Agencies Register and provide a decision within ten working days once all registration requirements have been fulfilled. If the application is accepted, the Ministry issues a ratified certificate and notifies the competent authority and relevant parties.

Rejection of the Application for Registration

In the event that the application for registration is rejected, the Ministry may provide reasons for the rejection and notify the concerned party via registered letter, hand delivery, or email. Failure to respond within ten working days from the submission date of a complete application is considered a rejection. The rejected party has the right to challenge the decision within sixty days by filing a lawsuit before the competent court. This clause establishes a transparent process for handling rejected registration applications.

Change or Amendment of Commercial Agencies

The agent, their legal representative, or their heirs to inform the Ministry of any changes or amendments to the commercial agency within sixty days of becoming aware of such changes. The Ministry then notifies the relevant authorities and parties involved about the amendments. This provision ensures the accuracy and up-to-date status of commercial agency registrations.

Deletion of Registration from the Commercial Agencies Register

If the agent no longer meets the conditions stipulated by the law or if the commercial agency has expired and not been renewed, the agent or their legal representative must apply for the deletion of the registration from the Commercial Agencies Register within sixty days of the reason for deletion. Alternatively, the Ministry can initiate the deletion process if it determines that the conditions are no longer met. The Ministry notifies the relevant authorities and parties of the decision for deletion. This ensures that the register remains accurate and reflects the current status of commercial agencies.

Documents to be Submitted for Amending or Deleting the Commercial Agency

When applying for an amendment or deletion of a commercial agency, the applicant must provide substantiating documents. The Ministry has the authority to request additional documents deemed necessary for the amendment or deletion process. This clause ensures that the Ministry has the necessary information to process requests accurately and efficiently.

Extract from the Registration Sheet in the Register

Any interested party has the right to obtain an extract from the registration sheet in the Commercial Agencies Register. This extract provides relevant information about the registered commercial agency. Additionally, interested parties can request a certificate stating that a registration has not been made. This provision promotes transparency and allows stakeholders to access essential information regarding commercial agencies.

Conclusion

The above mentioned highlight the key aspects of commercial agency registration and validity. Proper registration, adherence to contract terms, dispute resolution mechanisms, and transparency in the registration process are crucial for establishing and maintaining legitimate commercial agency relationships. These provisions aim to protect the rights of contracting parties and ensure fair and transparent business practices within the State.

For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com  – www.alsafarpartners.com  

Written By: Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.

Introduction:

Federal Law No. (3) of 2022, which regulates commercial agencies in the United Arab Emirates (UAE), introduces the establishment of the Commercial Agencies Committee. This committee plays a crucial role in resolving disputes that arise between the parties involved in registered commercial agency agreements. In this article, we will explore the competencies of the committee, its procedures, and the option of resorting to arbitration under Federal Law No. (3) of 2022.

Formation and Functions of the Commercial Agencies Committee:

Under Article (23) of Federal Law No. (3) of 2022, the Commercial Agencies Committee is established. The Cabinet issues a resolution to determine the committee’s formation, work system, member remuneration, and fees for hearing disputes. This committee serves as an alternative dispute resolution mechanism for commercial agency disputes, aiming to provide a prompt and efficient resolution for the parties involved.

Competencies and Procedures of the Committee:

a. Exclusive Jurisdiction: According to Article (24), the Commercial Agencies Committee has exclusive jurisdiction to hear disputes related to registered commercial agencies. Before parties can resort to courts, they must first submit their dispute to the committee. This requirement ensures that the committee has an opportunity to address the dispute before it proceeds to formal litigation.

b. Timely Resolution: The committee is mandated to address the dispute within twenty-two (22) working days from the date of application submission or completion of the required documents. The committee may seek assistance from relevant experts or entities to assist in the resolution process. Ultimately, the committee must render a decision on the dispute within one hundred and twenty (120) days from the application submission date. Failure to reach a decision within this timeframe allows either party to resort to the courts within sixty (60) days.

c. Binding Decision: Once the committee issues its decision, there is no admissible challenge against it after sixty (60) days from the notification date. The decision holds the force of a writ of execution, ensuring that parties comply with the committee’s ruling.

Assistance of Experts:

Article (25) of the law grants the Commercial Agencies Committee the authority to seek the assistance of experts or specialized entities when necessary. This provision ensures that the committee has access to relevant expertise and knowledge, enhancing the quality and accuracy of the decision-making process.

Arbitration as an Alternative:

a. Arbitration Agreement: Federal Law No. (3) of 2022 acknowledges the parties’ right to include arbitration clauses in their commercial agency agreements. This allows them to refer any disputes arising from the agreement to arbitration.

b. Arbitration Within the State: Unless otherwise agreed by the parties, arbitration proceedings should take place within the UAE. This provision ensures that the dispute resolution process remains within the jurisdiction of the UAE.

c. Committee Decision and Arbitration: If either party resorts to arbitration after the Commercial Agencies Committee has issued its decision, the committee’s decision will have no effect or consequence on the arbitration proceedings. This provision ensures that parties can pursue arbitration irrespective of the committee’s decision.

d. Transitional Provision: Article (26) clarifies that the provision allowing arbitration does not apply to disputes that were already being heard by the committee or the competent courts before the publication of Federal Law No. (3) of 2022.

Conclusion:

The establishment of the Commercial Agencies Committee under Federal Law No. (3) of 2022 provides a dedicated mechanism for resolving disputes in commercial agency agreements. Through its exclusive jurisdiction, timely procedures, and binding decisions, the committee aims to facilitate efficient and fair resolutions. In cases where parties prefer arbitration, the law recognizes their autonomy to pursue this alternative avenue. Overall, these provisions contribute to a robust framework for resolving commercial agency disputes in the UAE.

For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com  – www.alsafarpartners.com  

Written By: Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.

The United Arab Emirates is considered one of the most attractive countries for investments, domestically and internationally. As a result, numerous commercial transactions take place between individuals and companies, which may lead to disputes that prompt one party to seek their rights through the Court.

This is exactly what happened in this case, where the distributor filed the original lawsuit and our law firm, Al-Safar & Partners, was approached by the principal to assist in his claim and help him obtain his rights by canceling the distributor agreement. The principal was aware that our firm houses a wealth of legal expertise in various fields of law, capable of recovering our clients’ rights before the judiciary.

Facts of the appeal lawsuit:

The facts were obtained from the documents of the appealed Judgment and all the appeal papers. The principal (our client) filed the lawsuit, seeking the annulment of the decision of the Commercial Agencies Committee, the termination of the Distributor Agreement, and a Judgment in his favor for compensation. In his explanation of the claim, he stated that he had agreed with the first respondent (the defendant) to distribute construction equipment manufactured by the Principal (our client). However, he was surprised to find that the appointed Distributor Agreement  (the defendant) was promoting products contrary to the terms of the Distributor Agreement. Additionally, the Distributor Agreement failed to achieve the agreed sales volume and delayed payment of the dues owed. The principal (our client) lodged a complaint before the Commercial Agencies Committee to cancel the Distributor Agreement, but the appealed decision rejected the request, which led to the filing of the lawsuit. The Court ruled in favor of rejecting the lawsuit.

As the principal (our client) did not accept this Judgment, she appealed it, and the Court upheld the first-degree Judgment.

Subsequently, the principal (our client) lodged an appeal before the Federal Supreme Court, which overturned the appealed Judgment and referred the Appeal to the Abu Dhabi Court of Appeal for reconsideration by a different panel.

Accordingly, the appeal was referred to the Court of Appeal, which rejected it and upheld the Judgment of the first-degree Court.

The principal (our client) then filed a tilted appeal before the Federal Supreme Court, which, in its first session, overturned the appealed Judgment and ordered the distributor  (the defendant) to bear the expenses of the commercial agencies for canceling the Distributor Agreement. The Court issued the Appealed Decision, rejecting the Appeal, and subsequently scheduled a session to hear the case. In this session, the Court ordered the referral of the lawsuit to an expert, and after the expert’s report, the appeal was discussed in subsequent sessions leading to the final Judgment.

Judgment of the Federal Supreme Court:

The judgment established that enough Distributor Agreement is binding on the parties, and the principal can terminate or not renew the Distributor Agreement If there is a substantial reason justifying its termination or non-renewal according to the provisions of Federal Law.

The panel of judges clearly understood the facts of the case as per the second expert report and also confirmed the rights of the principal. as it established the Judgment on what it is reassured of the governing law and has demonstrated the truth based on valid reasons, refuting those statements and arguments of the distributor and rendering them irrelevant.

Based on the above and the expert’s report, the Federal Supreme Court ruled to annul the appealed decision, along with its consequential effects, including the termination of the Distributor Agreement and the rejection of other claims, and the distributor who was ordered to pay fees, expenses, and an amount of attorney fees for the principal.

This Judgment was a victory for the rights of our client and the efforts we exerted on her behalf to achieve this Judgment. Our law firm, Al Safar and Partners spares no effort in striving for the rights of our clients.

For further assistance please contact  Al Safar and Partners Law Firm. on +971.4.4221944 email reception@alsafarpartners.com –  dubailawyers.ae

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Introduction

Federal Law No. 3 of 2022 on regulating commercial agencies in the United Arab Emirates (UAE) has introduced a comprehensive framework to govern commercial agency agreements. While the law aims to establish a fair and balanced relationship between commercial agents and principals, the termination of commercial agency agreements can often be a complex and contentious issue. This article delves into the intricacies surrounding the termination of such agreements, exploring the legal provisions, potential complications, and measures to ensure fairness in the termination process.

I. Understanding Commercial Agency Agreements

Commercial agency agreements are contractual arrangements between a principal (usually a manufacturer or supplier) and a commercial agent (an intermediary) who represents and promotes the principal’s products or services in a specific territory or market. The law provides protection to commercial agents by establishing certain rights and obligations for both parties.

II. Termination of Commercial Agency Agreements

The termination of commercial agency agreements can occur due to various reasons, including expiration of the agreement, mutual agreement, breach of contract, or unilateral termination by either party. However, it is essential to understand the specific provisions outlined in Federal Law No. 3 of 2022 regarding termination.

Notice Period and Compensation

The law stipulates that a notice period must be provided when terminating a commercial agency agreement, taking into account the duration of the agreement and the circumstances of termination. The notice period aims to provide the affected party with sufficient time to adjust their business operations and minimize any potential adverse effects. Additionally, the law establishes a compensation mechanism that may be due to the commercial agent upon termination, considering factors such as the agent’s efforts in developing the market, the duration of the agreement, and any losses incurred.

Complications Surrounding Termination

Despite the existence of clear provisions in the law, complications may arise during the termination of commercial agency agreements. Some common challenges include:

Dispute Over Justifiable Termination: Determining the justifiability of termination can be subjective and disputed between the parties. Disagreements may arise regarding the grounds for termination, such as breach of contract, poor performance, or changes in market conditions.

Calculation of Compensation: Assessing the compensation owed to the commercial agent upon termination can be complex. The calculation involves considering multiple factors, including the agent’s contribution to the principal’s business, future sales projections, and any losses suffered by the agent due to termination.

Intellectual Property Rights: The termination of a commercial agency agreement may raise concerns regarding the ownership and use of intellectual property rights, such as trademarks, patents, or trade secrets. Resolving these issues requires careful evaluation and adherence to relevant intellectual property laws.

III. Ensuring Fairness in Termination

To address the complexities and ensure fairness in the termination of commercial agency agreements, several measures can be implemented:

Clear Contractual Terms: Commercial agency agreements should include detailed provisions on termination, including notice periods, compensation mechanisms, and dispute resolution procedures. Clear and precise contractual terms can help minimize ambiguity and potential disputes.

Mediation and Alternative Dispute Resolution: In cases of termination disputes, mediation and alternative dispute resolution mechanisms can provide an opportunity for the parties to negotiate and reach a mutually satisfactory resolution. This approach can help preserve business relationships and avoid protracted legal battles.

Compliance with the Law: Both principals and commercial agents must adhere to the provisions of Federal Law No. 3 of 2022. Familiarity with the law and its requirements can help prevent misunderstandings and ensure compliance during the termination process.

Professional Assistance: Engaging legal professionals experienced in commercial law and the UAE’s regulatory framework can guide parties through the termination process, ensuring compliance with legal requirements and protecting their rights and interests.

IV. Conclusion

The introduction of Federal Law No. 3 of 2022 on regulating commercial agencies in the UAE has created a structured framework for commercial agency agreements, aiming to strike a balance between the interests of principals and commercial agents. However, the termination of such agreements can present complexities and potential disputes. By understanding the specific provisions related to termination, addressing complications proactively, and ensuring fairness through clear contractual terms, alternative dispute resolution, compliance with the law, and professional guidance, the UAE can foster a more transparent and equitable business environment. As stakeholders navigate the termination process, it is essential to prioritize open communication, mutual respect, and adherence to legal requirements, ultimately promoting sustainable business relationships and fostering confidence in the UAE’s commercial agency sector.

For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com – www.alsafarpartners.com

Written By:

Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm.

Introduction

The United Arab Emirates (UAE) is renowned for its vibrant culture, economic prosperity, and stunning architecture. However, like any other nation, it enforces strict laws to maintain order and safety within its borders. For individuals with prior convictions in the UAE, the repercussions can extend beyond the immediate consequences, affecting their ability to travel within the Gulf Cooperation Council (GCC) countries. This article aims to shed light on the UAE’s entry ban policy and its impact on individuals seeking entry into other GCC nations.

Understanding the UAE’s Entry Ban Policy

The UAE’s legal system has a reputation for its stringent enforcement of laws. While the country welcomes millions of tourists and expatriates each year, it takes a firm stance on criminal activities. Those found guilty of serious offenses, including drug-related crimes, financial fraud, and cases involving public morals, may face severe penalties, including imprisonment and hefty fines.

One of the lesser-known but significant consequences is the imposition of an entry ban. Individuals convicted in the UAE may find themselves barred from re-entering the country for a specific period, or in some cases, indefinitely. This ban is implemented to maintain the security and integrity of the nation’s legal system.

Impact on GCC Travel

The GCC is a regional intergovernmental political and economic union consisting of six member states: the UAE, Saudi Arabia, Kuwait, Bahrain, Oman, and Qatar. These countries share a common cultural and linguistic heritage, as well as economic interests. Consequently, they have established agreements for the mutual recognition of legal decisions, including criminal convictions.

When an individual is subjected to an entry ban in the UAE, the implications extend to other GCC countries. Information regarding a person’s ban may be shared within the GCC, potentially leading to similar restrictions being enforced in other member states.

For instance, if an individual with a prior felony conviction in the UAE attempts to enter Saudi Arabia or any other GCC nation, they may face similar prohibitions, hindering their travel and potentially impacting their professional and personal life.

Legal Recourse and Considerations

Navigating an entry ban in the GCC can be a complex process, but it’s not entirely without recourse. Individuals facing such bans may explore legal options, such as seeking legal representation, filing appeals, or pursuing pardon requests. It is crucial, however, to consult with a legal expert familiar with UAE and GCC laws to understand the best course of action.

Conclusion

The UAE’s entry ban policy for individuals with prior felony convictions serves as a stark reminder of the country’s unwavering commitment to upholding the rule of law. However, the ripple effect on GCC travel demonstrates the broader impact of such policies. Individuals with prior felony convictions in the UAE must be aware of the potential consequences on their ability to enter other member states.

Ultimately, seeking legal advice and understanding the intricacies of UAE and GCC laws is paramount for those facing an entry ban. With the right guidance, it is possible to navigate the complexities and work towards a resolution that allows individuals to move forward with their lives.

For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com  –     www.alsafarpartners.com  

Written By: 

Mrs. Kavitha Panicker – Managing Partner at Al Safar and Partners Law Firm

Legal Defenses Against Fraud and Incomplete Projects

Introduction

The United Arab Emirates (UAE) has long been a haven for property investment, attracting both local and international investors looking to capitalize on the nation’s thriving real estate market. However, with the increasing demand for properties and the complexity of transactions, the risk of falling victim to fraudulent schemes and incomplete projects has also risen. To counter these challenges and protect the interests of investors, it is crucial for property investment conveyance in the UAE to involve experienced legal partners such as Al Safar & Partners Law Firm. This article delves into the reasons why legal representation, particularly through trusted firms like Al Safar & Partners, is essential to safeguard against fraud and the potential pitfalls of unfinished developments.

Rising Concerns: Fraud and Incomplete Projects

Over the years, the UAE has witnessed a surge in real estate investment, driven by its modern infrastructure, strategic location, and economic growth. Unfortunately, this rapid growth has also attracted unscrupulous individuals and entities looking to exploit investors through fraudulent activities. Fraudulent property schemes can range from false advertising to forged documents and unauthorized property sales, leaving investors with significant financial losses and legal battles.

Additionally, the phenomenon of incomplete property developments has posed a major concern. Some developers start projects with grand promises but fail to complete them due to financial troubles or mismanagement. This leaves buyers with unfinished properties, incurring losses and facing difficulties in recovering their investments.

The Role of Al Safar & Partners Law Firm in Property Investment Conveyance

Engaging Al Safar & Partners Law Firm in property investment conveyance plays a pivotal role in mitigating risks associated with fraud and incomplete projects. Here’s how Al Safar & Partners contribute to safeguarding investors:

    Due Diligence: Al Safar & Partners conduct thorough due diligence on properties and developers involved in the transaction. This includes verifying ownership, confirming project approvals, and reviewing legal documents to ensure their authenticity and compliance with regulations.

    Contractual Protection: Lawyers from Al Safar & Partners Law Firm draft and review contracts that outline the terms and conditions of the property transaction. These contracts are legally binding and protect the interests of investors by clearly defining the obligations of both parties.

    Legal Expertise: Lawyers from Al Safar & Partners possess a deep understanding of UAE property laws and regulations, ensuring that transactions are conducted in accordance with the law. They can identify red flags and advise investors on potential risks.

    Title and Ownership Verification: Al Safar & Partners Law Firm verifies property titles and ownership documents to ensure that the seller has the legal right to transfer the property. This helps prevent cases of property sales by unauthorized parties.

    Escrow Services: Lawyers from Al Safar & Partners can facilitate transactions through escrow services, ensuring that funds are held securely until all contractual obligations are met. This prevents developers from absconding with investors’ money before completing the project.

    Dispute Resolution: In case of disputes, Al Safar & Partners provides legal representation and assistance in negotiations or legal proceedings. Their expertise can be invaluable in resolving conflicts efficiently.

Conclusion

As the UAE’s real estate market continues to flourish, investors must remain vigilant against potential fraud and incomplete property projects. Engaging experienced legal partners such as Al Safar & Partners Law Firm in property investment conveyance serves as a vital layer of protection against these risks. Legal professionals from Al Safar & Partners play an indispensable role in conducting due diligence, drafting contracts, verifying property ownership, and offering expert guidance throughout the transaction process. With Al Safar & Partners by their side, investors can invest in properties confidently, knowing that their interests are safeguarded and their investments are secure

For further assistance please contact Al Safar & Partners on +971.4.4221944 email reception@alsafarpartners.com  –    https://dubailawyers.ae/

Written By: 

Mrs. Kavitha Panicker

Managing Partner at Al Safar and Partners Law Firm.

Ensuring your property investments are secure and protected

Al Safar and Partners has more than 20 years of legal consultation experience in the UAE and beyond. The law firm has also been litigating property disputes since 2006 and the business has helped more than 4,000 individuals solve their property-related issues. Al Safar is listed among one of the top firms in the Dubai Courts for the number of cases registered.

In the real estate legal sector, Al Safar and Partners offer dispute resolution, property purchase and investment advice and well as sale and purchase services.

Real estate transactions are one of the most disputed legal issues in Dubai and Kavitha S. Panicker, Managing Partner of Al Safar and Partners, says that every measure is taken from the very beginning to avoid all future disputes. In the event that there are legal proceedings, she says that Al Safar and Partners work tirelessly and diligently to ensure that clients’ investments can be refunded with the least disruption.

When the SPA clearly states the brand name of the property and at the time of signing the SPA that the property will be a famous brand name, on handover, if the brand name is changed, you have the right to request the court to terminate the SPA and get full refund as well as claim compensation.

Kavitha S. Panicker, Managing Partner of Al Safar and Partners

Panicker says that the majority of real estate legal services they provide are for sale and purchase agreements (SPAs) and also, in some cases, reservation agreements.

She says that due to the UAE’s highly transparent legal system, Al Safar and Partners can often help clients terminate SPAs on contractual grounds, especially when the delivery of property is delayed. “First we would need to review the SPA. If it stipulates the date of handover for a property and the extension period but if there was no notice issued to confirm a further extension of handover date, you have the right to request the court to terminate the SPA and ask for full refund and compensation thereof,” she says.

She also says that often disputes arise when clients are misled over the size of the property they are investing in and that this needs to be accurately stipulated in the SPA. “On review of the SPA, if the floorplan signed by both parties and the value paid in accordance to the sq. ft. on handover has a difference of more than 6 per cent, and that difference is officially authenticated by the court appointed engineering expert then, in the above case, you have the right to request the court to terminate the SPA and you will receive a full refund as well as the opportunity to claim compensation,” she says.

Another area of legal dispute can arise when clients invest in hotel apartments but on handover they receive a residential unit. “If the SPA clearly states that the property is a hotel apartment and both parties have signed the agreement and there is no addendum signed by both parties agreeing otherwise, you have the right to request the court to terminate the SPA and receive a full refund,” says Panicker. She says that Al Safar and Partners will also seek compensation in such cases.

Panicker says that fraud can be a common issue with property transactions in Dubai, so her and her colleagues work to study contracts and remove any discrepancies that could present a risk to clients. She refers to situations where investors believe they are buying properties associated with famous or prestigious brands, only to discover this is not the case on handover. Yet, with proper diligence and the correct paperwork, refunds and compensation can be obtained through legal channels.

“When the SPA clearly states the brand name of the property and at the time of signing the SPA that the property will be a famous brand name, on handover, if the brand name is changed, you have the right to request the court to terminate the SPA and get full refund as well as claim compensation.”

For real estate transactions, Al Safar and Partners take care of all the documents required for the legal and governmental procedures and the various governmental approvals required with respect to the real estate/property transactions.

To learn more, contact: property.dispute@alsafarpartners.com

Taking the appropriate legal steps can help avoid delays and lawsuits

Popularly known as “the land of opportunities,” the UAE is home to not just the locals but millions of expats from all over the world. To take advantage of the available opportunities, people often rely on debt in the UAE.

While creditors and debtors aim to have a mutually-rewarding relationship, there are several cases when the creditors require debt recovery services.

Be it debt recovery or negotiating debt with an individual or a company, it is important to engage a local firm which understands the UAE legal framework. In the majority of the cases, debt recovery in the UAE is an amicable process.

In cases where an amicable outcome is not reached, legal proceedings have to be initiated.

– Haitham Elfadaly, Head of Debt Collection & Enforcement, Al Safar and Partners

In most cases, initially a payment notice is sent to the debtors. If the debt remains unsettled, the debt collection lawyers will then contact the debtor and convey the terms of the recovery following appropriate discussions with the creditor. This follows the correct legal framework in order to accelerate the recovery of the debt. The measures are taken to ensure that the recovery process does not lead to any kind of lawsuits, and that debt is recovered as soon as possible.

What if the debtor fails to clear the debt?

In cases where an amicable outcome is not reached, legal proceedings have to be initiated. In most cases, a legal petition is filed in the UAE Courts to recover the outstanding debt. Once the petition is filed, the court will then send a demand letter to the debtor to clear the outstanding debt, along with the late payment fees, within 15 days.

If the debtor is unable to repay the debt within 15 days from receiving the demand letter from the court, a trial is initiated against the debtor. The court will then help the creditor with the debt recovery. Trials regarding debt recovery also allow the creditor to claim additional compensation.

It is important that the attorneys involved in the process are engaged with their clients at every step to ensure they can recover the debt in the most hassle-free and time-efficient manner.

What are debt buyers in the UAE?

The debt buying agencies buy outstanding debt from the creditors in the UAE. Debts that are yet to be recovered fully can be sold by creditors to such agencies for a certain percentage of the total outstanding balance. It is then the responsibility of the debt buying agency to recover the debt from the debtor.

We can help credit providers decide whether or not selling debt is the right choice for them. Our vast experience in the industry has made us well aware of the entire debt collection procedure in the UAE. Our expertise can help creditors make decisions that ensure cost-efficiency and legal compliance.

Al Safar and Partners has been in the UAE debt recovery business for a very many years. Be it fast-tracking debt recovery, filing a lawsuit, or verifying the ongoing payments, our legal experts can provide all the help you need.

If you are looking for debt collection services in the UAE, we’d like to hear from you. Contact us to know more about our services and understand how we can help.

To learn more, contact: debt.collection@alsafarpartners.com