Legislation Details
- Full Title: Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts
- Law Type: Cabinet Resolution
- Law Number: No. (154) of 2025
- Issued Date: 04 Nov 2025
- Effective Date: 15 Nov 2025
- Official Gazette: No. 811
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 25
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution regulates the agency responsible for undertaking the procedures for the collection of debts owed to federal entities in the UAE. It establishes the requirements and obligations for the agent appointed to execute debt collection on behalf of the creditor federal entity, as well as the scope of the agency's powers and the oversight mechanisms. The resolution aims to streamline and standardize the debt collection process for federal entities, ensuring higher efficiency and lower costs compared to the creditors executing the procedures themselves. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025) The resolution is significant for businesses and individuals in the UAE as it clarifies the legal framework for federal debt collection, including the rights and obligations of both creditors and debtors. It also establishes a centralized system for monitoring and reporting on the debt collection activities of federal entities, which can provide valuable insights for policymakers and stakeholders. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to regulate the agency responsible for undertaking the procedures for the collection of debts owed to federal entities in the UAE. It applies to federal creditor entities that choose to outsource their debt collection activities to an appointed agent, rather than executing the procedures themselves. The resolution sets out the requirements and obligations for the agent, as well as the scope of the agency's powers and the oversight mechanisms. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 1-6) The purpose of the resolution is to streamline and standardize the debt collection process for federal entities, ensuring higher efficiency and lower costs compared to the creditors executing the procedures themselves. It aims to provide a clear legal framework for federal debt collection, including the rights and obligations of both creditors and debtors. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 2)
What are the key definitions under this law?
The key definitions provided in this Cabinet Resolution are:
- Decree by Law: Federal Decree by Law No. (15) of 2024 Regarding the Collection of Debts of Federal Entities.
- Agency: A contract concluded between the Creditor and the Agent to execute one or more debt collection procedures, within or outside the State, in accordance with the contract and the controls set forth in the Decree by Law and this Resolution.
- Agent: The lawyer or law firm appointed by the Creditor to execute any of its debt collection procedures pursuant to the Agency and the provisions of this Resolution.
- Operating Expenses: Governmental or non-governmental fees required to be paid in order to undertake any debt collection procedure of federal entities, including, but not limited to, inquiry fees, court fees, execution fees, real estate registration fees, and financial institution fees. These expenses do not include any other operating costs that the Agent may incur in executing any debt collection procedure, such as travel, accommodation, or other personal expenses related to the Agent.
(Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 1)
What are the main obligations and requirements?
The main obligations and requirements under this Cabinet Resolution are: 1. The Agent must be a lawyer registered in the Rolls of Practicing Lawyers at the Ministry of Justice, or a law firm licensed in the UAE. The Agent must have been continuously registered for at least 5 years. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 4) 2. The Agent must have no direct or indirect personal or financial relationship or interest with the debtor that may affect their independence, integrity, or performance of duties under the Agency, and must provide a written declaration to that effect. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 4) 3. The Agent must execute the procedures assigned by the Creditor to ensure the governance of its debt collection procedures within due dates, maintain the confidentiality of the debtor's personal and financial data, and refrain from executing any debt collection procedures not assigned under the Agency. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 7) 4. The Agent must coordinate with the Debt Collection Follow-Up Unit of the Creditor, submit periodic reports on the progress of the collection process, and provide a final report upon completion of the Agency. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 7)
What licensing, registration, or approval requirements exist?
The Cabinet Resolution specifies the following licensing, registration, and approval requirements for the Agent: 1. The Agent must be a lawyer registered in the Rolls of Practicing Lawyers at the Ministry of Justice. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 4) 2. If the Agent is a law firm, it must be licensed in the UAE, whether an individual establishment, a professional company, or a branch of a foreign office. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 4) 3. The Agent must have been continuously registered in the Roll of Practicing Lawyers for no less than 5 consecutive years. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 4) 4. The Agency contract between the Creditor and the Agent must be in writing and approved by the head of the Creditor or their delegate. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 5)
Which authorities or bodies are responsible for enforcement?
The Cabinet Resolution establishes the following authorities and bodies responsible for the governance and enforcement of the debt collection procedures: 1. The Agent Selection Committee, which is formed within the Creditor and includes representatives from the Creditor's Legal Affairs and Financial Affairs, the Ministry of Finance, and the Department of State Issues at the Ministry of Justice. This committee is responsible for selecting the Agent based on criteria of experience and competence. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 3) 2. The Debt Collection Follow-Up Unit of the Creditor, which the Agent must coordinate with to monitor notifications, collection, enforcement, urgent, and precautionary measures. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 7) 3. The Creditor, which is responsible for supervising and monitoring the Agent's work, providing the necessary information and support, and submitting semi-annual reports to the Ministry of Finance on the debt collection activities. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 11)
What fees, charges, or financial provisions are specified?
The Cabinet Resolution specifies the following financial provisions: 1. The Agent's fees shall be determined according to a Schedule issued by a Cabinet Resolution upon the proposal of the Minister of Finance. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 10) 2. The Agent shall not pay any Operating Expenses for executing debt collection procedures of federal entities on behalf of the Creditor without its prior approval, which may take the form of an advance transfer issued by the Creditor. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 9) 3. The Agent shall record all Operating Expenses paid on behalf of the Creditor in the Agent Register, attaching all supporting documents, including expenses recoverable from the debtor and the actions taken to recover them on behalf of the Creditor. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 9)
How does this law interact with other UAE legislation?
The Cabinet Resolution references the following related UAE legislation: 1. Federal Law No. (1) of 1972 Regarding the Competences of Ministries and Powers of Ministers, and its amendments. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025) 2. Federal Decree by Law No. (34) of 2022 Regarding the Regulation of the Legal Profession and Legal Consultation Profession. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025) 3. Federal Decree by Law No. (15) of 2024 Regarding the Collection of Debts of Federal Entities. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 1) 4. Cabinet Resolution No. (14) of 2025 Regarding the Controls for Outsourcing the Collection of Federal Entity Debts. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025) 5. Cabinet Resolution No. (15) of 2025 Regarding the Rules and Conditions for Approving the Federal Entities' Debts Installment. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025)
When did this law come into effect?
According to the Cabinet Resolution, it shall be published in the Official Gazette and shall enter into force on the day following the date of its publication, which was 14 November 2025. (Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities' Debts, 2025, Art. 12)
Source Documents
This article analyses Cabinet Resolution Regarding the Regulation of the Agency to Undertake the Procedures for the Collection of Federal Entities’ Debts for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.