Acknowledgment of Debt in the UAE: Legal Importance and How to Get It Notarized

Introduction

When it comes to financial transactions, verbal agreements can often lead to misunderstandings or disputes. In the United Arab Emirates (UAE), one of the most reliable ways to formalize a loan or financial obligation is through an Acknowledgment of Debt. This legal document serves as concrete evidence of the amount owed and the agreement between parties. Whether you’re an individual lending money or a business extending credit, understanding how an acknowledgment of debt works in the UAE is crucial.

In this article, we’ll explore the legal significance of an acknowledgment of debt, the steps to have it notarized, and how platforms like Private Notary Dubai simplify the entire process.

What is an Acknowledgment of Debt?

An Acknowledgment of Debt (commonly referred to as "إقرار مديونية" in Arabic) is a legal document in which a debtor confirms in writing that they owe a specific amount of money to a creditor. This acknowledgment usually includes key details such as:

• Full names and Emirates ID/passport details of both debtor and creditor
• Total amount owed
• Due date or payment schedule
• Any agreed interest rate (if applicable)
• Signatures of both parties
• Date and place of signing

Once notarized, this document becomes a legally binding contract that can be enforced in UAE courts if the debtor fails to repay.

Why is an Acknowledgment of Debt Important?

Creating a notarized acknowledgment of debt offers several benefits:

1. Legal Validity

In the UAE, notarized documents carry significant legal weight. A notarized acknowledgment of debt can serve as primary evidence in legal proceedings, especially if the debtor defaults.

2. Clarity and Transparency

It eliminates ambiguity by clearly stating the amount, repayment terms, and parties involved. This reduces the likelihood of disputes.

3. Enforceability

With a notarized acknowledgment, creditors can pursue legal action quickly, often without the need for lengthy court procedures.

4. Professional Documentation

Having a formal record of the debt gives you confidence and professionalism—whether you're dealing with individuals, clients, or business partners.

How to Get an Acknowledgment of Debt Notarized in the UAE

Thanks to modern legal service providers like Private Notary Dubai, the process is now straightforward, even for non-Arabic speakers or expats unfamiliar with UAE law.

Step-by-Step Process:

1. Prepare the Draft

The debtor and creditor agree on the debt details and create a written draft in Arabic or bilingual (Arabic-English) format.

2. Collect Required Documents

You’ll need:

• Emirates ID and passport of both parties
• Contact details (email and phone number)
• Any supporting documents related to the debt

3. Schedule a Notarization Appointment

You can either visit a notary public or use mobile notary services offered by Private Notary Dubai, who can come to your location or handle the process remotely.

4. Sign Before the Notary

Both parties must be present (or represented with valid POAs) to sign the document before the notary.

5. Receive the Notarized Copy

Once signed, the acknowledgment is officially notarized and handed over or emailed as a certified copy.

Cost of Notarizing an Acknowledgment of Debt in the UAE

As of 2025, the average cost for notarizing a debt acknowledgment in Dubai is AED 1,060, inclusive of government fees and service charges. Providers like Private Notary Dubai offer doorstep service and document preparation assistance, making the process efficient and stress-free.

Can Expats and Foreigners Use Acknowledgment of Debt Documents?

Yes, expatriates and non-residents can draft and notarize such documents, as long as they present valid identification and the content complies with UAE legal standards. If one party is outside the UAE, a Power of Attorney can be issued to a local representative to act on their behalf.

When to Use an Acknowledgment of Debt

This document is especially useful in the following scenarios:

Personal loans between friends or family members

Business-to-business credit arrangements

Outstanding salary or commission claims

Rental deposits or advances

Debt restructuring or settlement agreements

Conclusion

An Acknowledgment of Debt in the UAE is more than just a signed note—it's a powerful legal tool that protects both creditors and debtors. Whether you're lending money, managing business debts, or preparing to pursue repayment, having a notarized acknowledgment ensures your rights are safeguarded.

To simplify the process, consult experts at Private Notary Dubai. Their dedicated team handles everything from document drafting to notarization—remotely or at your doorstep.