In September, I was made redundant from my job in the airline industry due to the Covid-19 pandemic. I didn’t receive an end-of-service gratuity as I’d only been with the company for one-and-a-half years, so I left the UAE immediately and returned home as I had nothing to do here.
However, in March 2019, I took out a Dh446,000 loan and was paying Dh10,800 in monthly instalments for it. I now owe Dh320,000 on the loan and because I lost my job, I have already missed two payments.
I have been in contact with my bank, but did not request a payment deferment under the Central Bank of the UAE’s Targeted Economic Support Scheme (Tess) as I am not sure when or if I will be able to get another job.
I also informed my bank that I have left the UAE. The issue, however, is that the bank is threatening to sue me because I have missed two loan repayments. While I have no means of repaying the loan at the moment, my plan is to get another job as soon as possible, which will then allow me to resume my monthly loan instalments.
If I am in another country, can the bank sue me for the remaining amount owed on the loan? And if I got another job in the UAE, would this case prevent me from returning? Finally, is it possible to pay back a debt in the UAE from another country? Please advise me on what I should do. SW, South Africa
R Sivaram, executive vice president, head of retail banking products at Emirates NBD
This is a very challenging time and the additional burden of job loss and financial pressures are indeed stressful.
I am glad that you are being financially responsible and intend to clear your outstanding dues. As a good practice, one should always try to settle all bank debts and close all lines of credit before leaving the UAE.
As a next step, I would advise that you explain your situation to the bank and make it clear that you aim to clear your loan balances. Work towards creating a repayment plan that you can service even while residing outside the UAE.
You could consider rationalising some of your personal expenses that will help you make regular repayments, as well as liquidating any personal assets to help pay off your loan sooner.
Finding employment at the earliest will also work in your favour, irrespective of location, and support your request of restructuring your loan with the bank.
Ambareen Musa, founder and chief executive of Souqalmal.com
It is understandable that you left the UAE with no potential livelihood to look forward to here. However, looking at it from the bank's perspective, it may cast doubts on your intentions as a borrower.
The fact that you did not keep the bank in the loop when you lost your job, or before leaving the country, may work against you, especially now that you have already missed two repayments. Now that the bank is threatening legal action against you, you will need to step up and negotiate a new repayment plan with the bank.
It is common practice for banks to demand full and final settlement of outstanding loans when a borrower is permanently leaving the country. In various instances, borrowers are also able to come to an arrangement with the bank to keep repaying their loan from overseas, based on proof of potential income from other sources.
But this arrangement isn't easy to secure because it isn't easy for banks in the UAE to enforce debt recovery measures when a borrower is based in another country.
This is why a borrower should be prepared for the bank to demand an immediate lump-sum settlement. If a borrower fails to meet the bank's demands, the bank can file legal charges and also request for a travel ban to be placed against them. The borrower can be detained at the airport and arrested even if they are transiting through the UAE.
Now where does that leave you? You will have to be open in all your communication with the bank, explain your financial circumstances and try to find a workable solution to repay your debt.
Since you did not receive an end-of-service gratuity, you could tap into your savings and investments or ask family members to help you with an interest-free loan to partially settle your outstanding debt in the UAE. The bank may even be willing to waive a portion of the interest or lower your settlement amount in return for a lump-sum payment.
However, if you're having trouble negotiating with the bank from overseas, you could look into hiring a legal representative who can negotiate with the bank on your behalf. A legal expert can not only reach out to your bank to negotiate a restructured repayment plan, but they can also look into how the UAE's new Insolvency Law can help you out.
The provisions under this law also cover ex-residents like yourself, who are struggling to meet their debt commitments from overseas. If you do decide to go down the insolvency route, your legal representative can petition the local civil court and commence insolvency proceedings on your behalf.
Steve Cronin, founder of DeadSimpleSaving.com
UAE law entitles you to a gratuity after one year of service, so unless you have very unusual circumstances, you should be able to claim a gratuity. You should check this with HR at your old company and you may also need to speak to a lawyer.
It seems you took out a substantial loan the moment you got your airline job and have spent all the money. This does indeed put you in a serious situation, especially if you choose to return to the UAE.
The bank can hand over your debt to debt collectors in your own country and they can make life very stressful for you. However, the debt collectors will still have to abide by the regulations in your country. If you return to the UAE, you may find yourself arrested or taken to court for the full amount of the loan. Meanwhile, penalties and interest will be building up while you do not make payments.
Your challenge is to persuade the bank to give you a deferment until you are earning again and then allow you to repay in instalments. Given the airline industry has been hit badly by the pandemic, you may struggle to find an aviation job for many months.
You should still try to contact the bank and find a solution, ideally talking to someone as senior as possible who is empowered to make decisions. It is probably too late to ask for a deferment but you can still try. Note that if you provide your current details the bank may hand this information over to debt collectors in your country. The bank may be reluctant to allow instalment payments from another country but you will have to make it clear that this is the only way they can get their money back and try to reach a compromise.
If you have loan insurance through the bank, check the terms and conditions. Often, you have to notify the insurers within a month or two of being made redundant. If the bank is refusing to provide your loan insurance details, even though you have clear evidence of paying it, then you can report them to the Consumer Protection Department of the Central Bank of the UAE.
The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
THE BIO
Favourite place to go to in the UAE: The desert sand dunes, just after some rain
Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude
Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE
Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally
Favourite subjects in school: Mathematics and science
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
Points Classification after Stage 1
1. Geraint Thomas (Britain / Team Sky) 20
2. Stefan Kueng (Switzerland / BMC Racing) 17
3. Vasil Kiryienka (Belarus / Team Sky) 15
4. Tony Martin (Germany / Katusha) 13
5. Matteo Trentin (Italy / Quick-Step) 11
6. Chris Froome (Britain / Team Sky) 10
7. Jos van Emden (Netherlands / LottoNL) 9
8. Michal Kwiatkowski (Poland / Team Sky) 8
9. Marcel Kittel (Germany / Quick-Step) 7
10. Edvald Boasson Hagen (Norway / Dimension Data) 6
The biog
Age: 32
Qualifications: Diploma in engineering from TSI Technical Institute, bachelor’s degree in accounting from Dubai’s Al Ghurair University, master’s degree in human resources from Abu Dhabi University, currently third years PHD in strategy of human resources.
Favourite mountain range: The Himalayas
Favourite experience: Two months trekking in Alaska
