Got debt issues? UAE residents must make better use of Insolvency Law

You drive a late model BMW; live in a townhouse or villa; take the family twice yearly on expensive vacations. Yet, you’re just one missed salary away from disappearing.

If you’re using one credit card to clear another, ignoring calls from collector agents, or telling your spouse ‘We’re fine…’ while burning through savings on holidays, you’re closer to a breakdown than you think.

I know of a family who lives at The Lakes, drives two late model German cars - but once their income dropped, they found themselves using credit to pay tuition. They had zero emergency savings. Within six months they had outstanding balances on two cards and no clue who to turn to for help.

Another expat, living in a Dubai Marina flat, took cash advances to fund a summer holiday in the Maldives with family and a second home in Ajman. His bank manager called to push a higher‑limit card, never once asked how he’d pay it back. Now, he’s on three credit cards, a personal loan and avoids family dinners to dodge questions.

In Dubai, domestic credit totaled over $440 billion as of late 2024 – the household debt is climbing fast. Meanwhile, figures show gross savings at around 42% of GDP in 2023. On paper, it sounds OK, but doesn’t apply to residents blowing through cash on designer chains, iPhones, Business Class tickets and 5-star stays in Geneva. 

Banks and insurers aren’t your friends. They’re too busy pitching credit cards, auto‑loan offers, or selling takaful plans to care about your savings. Or warn before your next card gets declined. Nobody steps in to say to slow your roll.

This isn’t theory - it’s what works:

Admit you have a problem

Ignore it, and it grows. Speak honestly to someone who isn’t on the sales pitch—the accountant friend, a sibling or relative who saves. Denial kills.

The villa at the Lakes or the Tesla lease, they eat your cash. Sell the second car, cancel that holiday apartment. Live lean for six months while you rebuild.

Don’t treat cards as ATM machines. Only use one at a time. Clear the balance in full each month. Cancel extras you don’t need.

Stop chasing zero‑interest promos- they always roll into huge bills later.

Park Dh20,000–Dh30,000 in a high‑yield savings account (Mashreq NEO, FAB iSave). They offer flexibility and even a 4%‑6 % per annum interest income can carry you through unexpected shocks. That cash prevents you from leaning on debt for emergencies.

The UAE Federal Decree Law No. 19 of 2019 lets you approach a court, work with an expert, freeze creditors, and get up to three years to repay under a supervised plan. There’s no jail, no shame, just structure.

You can live in Al Barari, Umm Suqeim, Bur Dubai or Dubai Hills- the system applies equally.

Layla, a teacher in Mirdif, couldn’t keep up with the Dubai lifestyle, then fell behind on loan payments. She quietly filed under the Insolvency Law, froze creditor calls, and got a two‑year repayment plan.

She kept her teaching job, stayed off social media, and rebuilt her credit without anyone in the neighborhood ever knowing.

The insolvency process lets you sort things quietly and restore your finances - and your honor.

Debt doesn’t make you a criminal. Stop hiding, stop faking it. Talk to someone who isn’t paid to sell you something. Use the UAE Insolvency Law before it’s too late.

Reclaim control of your money (and your life) before this city becomes just a chapter you had to rush away from.