UAE banks using police as 'debt collectors' – Al Mulla

EXCLUSIVE: Top UAE lawyer says banks using debt laws to dodge due diligence checks.

mike charlie mike

The UAE was not the only country that lent to foreign persons or businesses. Internationally connected markets share similar issues regarding debts. Mr. Mahmoud's idea is interesting in equality. There are debtors in the UAE that have incurred liabilities abroad and not yet honored their debt. Global economy anyone? Stuff happens. Commercial deals, trade, real estate and even retail credit. There is even debt owed to the UK national health system for example. No sector is immune even in better times. People of this region / country who have incurred non criminal debts abroad are still able to travel freely to those markets and the laws that protect debtors "there" protect them equally as well or better. There will always be bad apples and the situation in the UAE is exacerbated by the larger proportion of expats (retail!!) i do agree. Rhetorically, if other countries would start to detain and block GCC citizens for their debts abroad; would that not slightly change the perspective?


Courstey British bankers ...( Investment bankers and AMCs - basically gamblers) using our money are responsbile for all the ills in banking/economic system today. To earn bonuses they ventured recklessly and in the process led to economic downturn, financial failures,defaults etc etc.. Interestingly none of them ever got/gets prosecuted in MENA or UK for that matter. Exactly why reforms are need in MENA instead of copy pasting or worshipping Brits. or US. Don't worry UK in particular is another failed state in the making, needs India like never before to survive.


Bubble? we do not even have enough supply to meet our own demands and we do not invest more on those so called bubble markets who dance without music.

We know where the bubble to come from. By the way, highest paid jobs are currently in India and unfortunately we are not going to consider that region after East India Co experience.

Hugh Jarse

Rukus, a few corrections:

- The single biggest factor in the economic downturn was subprime lending in the US. British bankers are way down the list, behind Irish and Icelandic banks and bankrupt Southern European governments, to name but a few.

- India is a net exporter to the UK, therefore far from "needing India", in trade terms India has more to lose than the UK if the UK economy goes down the tubes.

- You should also consider how many of your best graduates would lose their jobs in call centres (doing the jobs that even low-qualifed British workers currently don't want to do) if the UK economy got any worse.

- If I were you I would be less worried about the banks or economy of a country thousands of miles away and more concerned about how you are going to feed your ever-growing population as climate change degrades ever more of your prime farmland

Brit expat

UK needs India? Rukus, are you out of your mind!! Its UK that's considering cutting aid to India's poor right now, but that doesn't mean the UK needs India. The Brits are battling the financial crisis steadily thank you. India's bubble will come sooner or later.


Banks are into the business of deposit/lending. So when then lend they are taking risk on a customer. Hence it is purely a risk taking proposition where they make money by charging interest/fees. Why govt. machineries/policy helps a business to make their risk good.

Police should come into the picture only when it is established by the court that there is a criminal intention of customer for not paying back money.

Just because laws/govt machineries are helping bank to make their risk taking good, banks are simply not doing their due diligence and banker are aggressive to sell their product for their own bonuses, as onus of recovery is on police. I do agree police should charge bank for all administrative charges, customer lodging (in jail), food etc to the bank for the full period till the person is in jail.


Hugh..Brit expat.(s)... IMF/WB has projected India to topple US and Chinese economy in 15-20 years time. That Makes India an indispensbale nation. That is some achievement in 60 years after your ancestors looted India for a century- just as you are doing in middle east now.

Infact the failure of banking and financial markets in UAE was courtsey defunct, rendundant, aged Brits.

We indians saved and taught you Brits how to run Standard Chartered Bank.


Preposterous may be.... but then why there are so many countries were bank activities are limited by law? have you ever heard of predatory lending?
and sorry your remarks about the salty marketing managers reflect a very immature business approach. Equating marketing aggressiveness with competence is incredibly funny given bank's situations around the world. activities.
If anything recent events brought to the fore the need to limit banks' activities.
I also like your moral judgement... given that many people have to take a loan to pay for their rental in UAE and they can be fired at any moment that according to you "irresponsible debtors " who have "disgraceful and humiliating downfall in front of yourself your family and society at large"
Anything rather than admitting that there is a need for structural reforms on how business is conducted and how laws are applied.
And no, it is not my case. I am debt free.


Banks are not here to offer charity. If you really wish to lead a great life, never borrow from anyone; the moment you are in debt you have bequeathed your absolute freedom and liberty because after all you are answerable and accountable to your creditor(s). If you borrow from a friend, you must pay it, what about borrowing from a bank??? The UAE will encourage fiscal chaos and anarchy and its economy will be in shambles if it allows debters to walk away scot free and dragging along more victims in the bottomless abyss of debts, now do we really want this great country to turn into a haven and oasis for unscrupulous debtors??? That's a No Brainer!!!

Ruben Gutierrez

Nobody said it is for charity or free. Some people are lucky they don't have problems financially but for sure they have heavier problems money can't buy....not for now but sure it will come to them. Unavoidable problem happens. We cannot say all of them are irresponsible. Maybe some people are too responsible that's why they took the risk. We cannot judged them because we are not in their situation. Nobody want to take a stone and hit his own head...Try to be understanding and kind.


i remember in 2007 the rent has gone up to 500%, if you want a room in dubai you have to pay dhs 5000 a month more than a rent in central london and New York in American and people were screaming but no one was there to listen people's problems.

In that scenario most of the banks came in the scene and offered flexible loans. I know personally a man whos salary was only dhs 7000 and one of local bank offered him a personal loan of 200,000 instantly. Why bank offered him such a huge amount even though they know that he is earning only 7000. How he will manage to pay this amount.

Now they want their money back with the interest, everyone in UAE has got more 5 to 10 cards in average why they give them so many cards who allowed them to get these credit cards.

This is ridiculous, banks have no policies they only want to sell their products then blackmail and exploit people by their power.


Banks must sell their products, but have the customers sold their brains and common sense and sanity? Marketing a product should be done in an aggressive manner otherwise the Marketing Manager is not worth his salt and should cede his seat to a more competent professional. It is utterly preposterous to point any finger at the product or the bank or the practised marketing strategies, instead be responsible mature and bold enough to take sole responsibility for your disgraceful and humiliating downfall in front of yourself your family and society at large. Many people and issues deserve our sympathies but irresponsible debtors never qualified.


VERY WELL SAID RUBEN. I APPLAUD YOUR COMMENT. Specially on the part that you mentioned that "Maybe some people are too responsible that's why they took the risk. We cannot judged them because we are not in their situation. Nobody want to take a stone and hit his own head...Try to be understanding and kind.

Ruben Gutierrez

There is nothing wrong with selling your products, naturally it's a business...your going away from the issue... "Due Process" is what your customers need..


Banks have always promoted responsible borrowing and urged our UAE guests to borrow only what they really require and can afford to repay. A wise and responsible customer will consider the reasons why he requires any loan and his repayment capacity before applying for a personal loan. Banks have every right to use these security cheques in the event of the borrower's failure to meet the loan payments. The authorities must ensure that each resident obtain a no-objection letter from his bank that he must submit at the airport. No expat can leave without producing a NOC from his bank. This is the only way to stop debtors from fleeing this country and those who even attempt to flee without settling their huge liabilities must be incarcerated. No mercy should be shown to such irresponsible people who threw caution and common sense to the wind. In case of an employee losing his job, the employers must immediately inform the banks who will alert the police and airport authorities.


Hi Mahmoud, your plan is kind of funny. Leaving apart the economic logic, just look at the details.
-what happens to people with no bank accounts? How can they prove they have no outstanding debts? And yes many people in the UAE still have no bank accounts (think of laborers)
-what happens o people with 2-3 or more bank accounts. I show a NOC form one bank, what about the other ones?
What happens to people who 2-3 times every week? do we need to get a NOC every time we fly?
-I am lucky that I have a positve working capital, and i need no financing, but if you ever run a business you will notice you always owe money to someone somewhere even if you are in a positive net position. Too bad , no travel for you.
-what happens when people who are owed money do not get paid and then they can not pay themselves. No mercy to them?
The only thing clear from your post is that you never ever had anything to do with business. Unfortunately thinking like this will mean the slow death of the UAE.


It never fails to makeme laugh out loud, many postings here of people who openly admit to leaving their debts and responsibilities and running away. Hellloo wake up smell the flavour of the coffee, why do you take a credit card when you cant afford the repayments???, The Law of The land is that bouncing a credit card is a criminal offence, not owing money, but just the act of cheque returning. because post dated cheques and cheques in general are like currency, and given on trust of my word is my Bond.Having said that, many people including the banks abuse the system, by giving cards to those that they know they cant afford,

Ruben Gutierrez

"Credit cards & loans defaulters - Do they deserve to go to Jail? "- are they CRIMINALS?? Did they kill somebody? Did they steal something from others? How does the bank decide if customer must go to jail? Did the customer purposely did not pay their dues or something happened to them that they cannot avoid? Did they escape and go back to their country or they are still here trying to cope up with life and still negotiating to the bank & paying all the interest & charges even though how difficult it is?
People came here to earn and most of them have dependent or family depending on their income. I think it is not humane especially we are here in an Islamic country to hear that somebody go to jail because they cannot pay the BANKS - INTEREST & CHARGES. It is Harram in Islam.
Can the government do something and be more considerate with this people because the bank do not lose anything, not even a single Fils cause all of this are covered by insurance in which the customers are also pay.


I still feel positive that the government will do something on this.

These are tsunamis in individual lives affecting many families and the country as well. The heavily indebted people should be guided back to the mainstream, live dignified lives, be productive and help build up the economy.

If this is problem of the government, at least this is manageable, compared to natural disasters like in Japan--the government does not see the enemy and cannot predict the moves.

The essence in this comments thread is to help, not to injure further, the injured ones--like in the car accidents whether the person is hit due to his negligence or not, the immediate action is to help bring him to the hospital and be treated properly.



There are so many people who suffers from threatening of collecting agency. The collecting agency said they help people to pay the loan by communicating to the manager of the collection and recoveries, how they can help the people for their depths if the high interest still there. The payment for 6 months are already useless. In the philippines collecting agency are very bad. The Domingo & MOlaer are the worst collecting agency they threat even the relatives of the person who has loan in UAE. TO the manager of emirates bank in UAE please check those collecting agency. In the phils. it's not criminal case and the bank give chance to the person to pay in installment basis.

All comments are subject to approval before appearing

Features & Analysis
Startup Academy: How to fund your startup

Startup Academy: How to fund your startup

Debate at the latest Arabian Business Startup Academy revealed...

The UAE is becoming more comfortable telling the world what it is thinking

The UAE is becoming more comfortable telling the world what it is thinking

The story of the country over the past 10 years helps explain...

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

Most Discussed