Start amicable — it usually works
Most commercial debts in the UAE are resolved without court action. A structured amicable phase — formal demand letters, direct negotiation with the debtor's finance team, and realistic settlement or instalment proposals — recovers a large share of overdue invoices while preserving the trading relationship.
The key is speed and documentation. The earlier a past-due account is placed with a collection partner, the higher the recovery rate tends to be, and every step should leave a written record that can later support a legal claim if needed.
Work with a licensed agency
Debt collection is a regulated activity in the UAE. Engaging a licensed debt collection company matters for two reasons: the agency operates within the rules that govern contact with debtors, and its letters and calls carry a weight that informal chasing does not.
ICG MECOS is a licensed debt collection company based in Jumeirah Lakes Towers, Dubai, recovering commercial receivables across the UAE, the wider GCC and internationally through the Infocredit Group network.
When amicable collection stalls
If the debtor disputes the debt, goes quiet, or simply refuses to pay, the file moves to escalation. In practice that means a legal review of the contract and evidence, a final formal notice, and — where justified — proceedings before the competent court or arbitration body named in the contract.
Well-prepared files settle more often at this stage: a debtor who sees a complete statement of account, signed contracts and a documented collection trail understands the creditor is serious.
Tracing debtors who have moved on
A common Dubai scenario is the debtor company that has changed premises, sponsors or contact details. Professional tracing — using commercial registries, credit bureau data and field investigation — re-establishes contact and confirms whether the debtor still has assets worth pursuing before money is spent on legal action.
What it costs
Commercial collection is usually charged as a success fee — a percentage of what is actually recovered — so the agency's incentive is aligned with yours. Legal escalation, where needed, is quoted separately once the file has been reviewed. Ask any agency you speak with to explain its fee structure, its licensing status and its reporting cadence before you place a file.
This article is general information from the ICG MECOS team, not legal advice. For guidance on your specific situation, speak to a qualified adviser or your regulator.