POA for Debt Collection and Financial Disputes in the UAE

Published on December 24th, 2025

Dealing with debt collection or financial disputes in the UAE can get complicated fast, especially when you can’t be physically present for court hearings or handle all the paperwork yourself.

A power of attorney in Dubai gives you a way to appoint someone you trust to take care of these matters without you being there every step of the way.

Whether you’re chasing unpaid invoices for your business or sorting out a personal financial disagreement, knowing how a Power of Attorney (POA) works in these situations makes everything easier and less stressful.

Why You Need Legal Representation for Financial Disputes

The UAE’s banking sector plays a massive role in private credit. The Central Bank’s 2024 Financial Stability Report shows that about 71% of private sector credit comes from UAE banks.

With that much credit flowing around, disputes are bound to happen, missed payments, defaulted loans, contract issues, you name it.

Once these problems land in court, things get serious. Court cases need multiple appearances, multiple documents, and constant back-and-forth with legal processes.

If you’re overseas, traveling constantly, or just can’t make it in person, you could miss deadlines or worse, lose your case without even getting to defend yourself.

That’s exactly when a power of attorney in the UAE becomes essential. You hand over the authority to someone qualified who can show up for you, sign what needs signing, attend hearings, and take the legal steps necessary to protect your interests.

How a POA Actually Works in Debt Collection

When it comes to collecting debt in the UAE, there’s a process to follow, and having someone with proper legal authority makes it run much smoother.

1. Showing Up in Court

When someone files a case to get their money back, the person who owes the debt has to respond within a specific time. If you miss that window or don’t show up, the court might rule against you even if you had a solid defense.

Your POA holder steps in, appears on your behalf, files the right responses, and can even work out settlements, all without needing you there.

2. Setting Up Payment Plans

The government has made things a bit more flexible lately. Cabinet Resolution No. 15 of 2025 lets debtors (or their legal reps) apply for installment plans at pretty much any point in the collection process.

If you’ve got someone working under a power of attorney in Dubai, they can handle the application, put together the payment plan, and follow through.

3. Getting Your Financial Documents

Financial disputes almost always need bank statements, transaction histories, or credit reports. The problem? Most banks won’t hand these over to just anyone.

They need to see proper authorization. A POA gives your representative exactly that, so they can collect the evidence needed to build your case.

4. Handling Government Collections

Sometimes, government bodies get involved in debt collection, especially for public sector debts.

Cabinet Resolution No. 14 of 2025 explains how leftover money from debt collections can go toward other debts the same person owes. If you’re caught up in this, having someone who knows these rules can save you from expensive mistakes.

Which Type of POA Works Best for Financial Issues

POAs aren’t a one-size-fits-all solution. You need to pick the right kind depending on what you’re dealing with.

1. Special Power of Attorney

This one’s the safest bet for most people. It spells out exactly what your representative can do. This could be filing one lawsuit, negotiating a specific debt, or handling a particular court case. The limited scope keeps things tight and reduces the chance of misuse.

2. General Power of Attorney

A general POA hands over much broader control and might make sense if you’re juggling several financial issues at once. But because it gives so much power, you need to absolutely trust whoever you’re appointing.

3. Court-Specific POA

Already in court? You can issue a POA just for that case. This type usually covers everything related to the lawsuit, like filing paperwork, showing up to hearings, agreeing to settlements, the whole nine yards.

Protecting Yourself When Using a POA for Money Matters

Since we’re talking about your money and legal responsibilities here, you need to be careful.

Be Specific in the Document: Vague wording is a recipe for trouble. Spell out exactly what’s allowed and what isn’t. For instance, if your representative can negotiate settlements, set a threshold they can’t go below without checking with you first.
Get It Properly Attested: A power of attorney UAE that skips proper attestation won’t be worth the paper it’s printed on. Courts and banks will reject it. Make sure it goes through the full notarization and attestation process.
Put an End Date on It: Financial disputes can drag on forever, but your POA doesn’t have to. Set a clear expiry date or link it to when the case wraps up. This automatically limits how long someone has control over your financial matters.
Ask for Updates: Add a requirement that your representative keep you in the loop. Regular check-ins mean you stay on top of things and can spot problems before they get out of hand.