Cheque Bounced in Dubai? Here’s What to Expect Next

Gulf Trick
Tuesday, June 24, 2025 11:59 AM

DUBAI – If a cheque issued in Dubai bounces due to insufficient funds, the drawee (the person or entity to whom the cheque is made out) has legal recourse.

According to the UAE’s Federal Decree-Law No. 42 of 2022, the drawee can file an execution case against the drawer (the person or entity that issued the cheque) to claim the amount owed.

For more updates, connect with us on WhatsApp!

The law outlines that the drawee must file a ‘Writ of Execution’ in the relevant court. Once the court grants this order, the drawer is notified of the execution amount, which includes the sum of the bounced cheque along with any applicable court fees.

If the drawer fails to pay the amount within seven days of this notification, the court may issue an arrest warrant upon the drawee’s request.

Additionally, if the amount owed is over Dh10,000, a travel ban may be imposed on the drawer.

Legal experts advise anyone facing a bounced cheque situation to seek appropriate legal counsel to navigate the complexities of the UAE legal system effectively.