Introduction
Debt collection in the Middle East is subject to significant legal diversity across the Gulf countries, the Levant, and North Africa.
While there are common elements—such as Islamic Sharia being a source of legislation—the practical application of the laws varies widely from one country to another.
In this comprehensive guide, we review the key laws and procedures related to debt collection in major Middle Eastern countries and explain how businesses can handle them professionally — with reference to the role of “Saar” as a trusted provider of collection solutions in the region.
First: What Makes Debt Collection Laws in the Middle East Unique?
1. Sharia-Based and Civil Law Systems
Many countries partly rely on Islamic Sharia, which impacts interest, penalties, and bankruptcy rulings.
They also apply civil law systems inspired by French or British legal models, depending on the country.
2. Variation in Judicial Development
Countries like the UAE and Saudi Arabia have modern, digital judicial systems.
Others—like Syria or Yemen—suffer from weak legal infrastructure.
3. Importance of Documentation
In most countries, no claim can proceed without official documentation, such as contracts, invoices, checks, or promissory notes.
Second: Comparison of Debt Collection Laws Across Key Middle Eastern Countries
| Country | Legal System | Enforcement Courts | Amicable Collection | Special Notes |
|---|---|---|---|---|
| Saudi Arabia | Sharia + Modern Systems | Advanced (Execution Courts) | Preferred first | A check is considered a direct enforcement tool |
| UAE | Civil + Sharia | Fast (Commercial Courts) | Preferred first | Arbitration contracts are common |
| Egypt | Traditional Civil | Relatively Slow | Very Common | Cases take more time |
| Kuwait | Civil + Sharia | Available | Court collection more common | Contracts must be detailed |
| Qatar | Civil + Sharia | Digital | Effective | Flexible corporate laws |
| Jordan | Civil | Somewhat limited | Essential | Execution can take a long time |
| Lebanon | Civil | Weak enforcement | Common | Economic crisis affected repayment ability |
Third: General Debt Collection Procedures in Most Regional Countries
1. Amicable Collection (Pre-litigation)
-
Formal communication with the debtor (email – letter – legal call)
-
Offering settlements or repayment plans
-
Using collection agencies (like “Saar”) to avoid direct conflict
2. Filing a Lawsuit
-
Submitting the claim to the relevant court
-
Providing documents (contract – invoice – bank transfer)
-
The judge sets hearings and issues a ruling
3. Judgment Enforcement
-
Once a judgment is issued, it is enforced through the Execution Court (if available)
-
Seizure of funds, assets, or travel bans in some countries
Fourth: Pros and Cons of Each Country’s Debt Collection System
Saudi Arabia
-
Pro: Strong and efficient Execution Courts
-
Con: Claims must be based on formal documentation (e.g., stamped invoice or check)
UAE
-
Pro: Fast judiciary and common arbitration
-
Con: Court fees can be high
Egypt
-
Pro: Claims accepted with an invoice or payment proof
-
Con: Execution can be slow
Kuwait
-
Pro: Strong creditor protection laws
-
Con: Procedures require meticulous documentation
Fifth: The Role of “Saar” in Debt Collection in the Middle East
Saar provides comprehensive services for both commercial and individual debt collection across the Middle East and beyond, including:
-
Amicable and Legal Collection
Local teams specialized in negotiation and friendly debt recovery before legal escalation. -
Legal Representation via Partner Network
Licensed attorneys in Saudi Arabia, UAE, Egypt, and other countries follow up cases through to enforcement. -
Detailed Client Reports
Regular updates on each file with legal and financial recommendations. -
Support in Drafting Commercial Contracts
Drafting terms that protect you from future collection issues—especially when dealing with foreign entities.
Sixth: Legal Tips to Protect Your Business in the Middle East
-
Put all client obligations in a formal written contract.
-
Use checks or promissory notes as guarantees.
-
Include an arbitration clause in international contracts (especially with foreign companies).
-
Monitor due dates carefully and follow up promptly.
-
Use a professional legal collection firm if delays persist.
Seventh: When Do You Need “Saar”?
-
If you have clients in multiple Middle Eastern countries
-
If you face delayed payments from local or international parties
-
If you’re unfamiliar with local debt collection laws
-
If you want to recover dues without long legal disputes
Conclusion
Debt collection laws in the Middle East are diverse, but not overly complicated if approached professionally.
It requires strong documentation, local legal understanding, and a trusted partner like “Saar” to assist you at every step — from amicable collection to full legal enforcement.
Need a free consultation for debt recovery in the Middle East?
Contact “Saar” today and get a full legal and financial evaluation of your case.