Financial News

Dubai Expats Must Pay Their Debts At Airport

Expats departing Dubai can expect to hand their credit cards as well as their passports over at immigration control when they leave the country.

A new electronic cash register is available on departure for paying unpaid credit and loans, which had stopped expats leaving the country under local laws banning international travel for debtors.

Many expats are in favour of the system, which lets them clear their credit before leaving Dubai airport.

Under archaic laws, trying to leave the country without settling debts was banned. Expats owing money were often arrested or had to go before the courts to sort out their finances before they could leave the UAE.

Many found this a real problem if a family emergency arose overseas as the ban prevented them from visiting sick or dying loved ones.

Expats pay debts at airport

One problem many expats hope improves is how often banks update their records, as many claim financial institutions are sometimes slow to mark debts paid.

Now, immigration control will issue a written statement of account detailing any debts, allowing the traveller to pay there and then.

A receipt is issued for the payment and a copy sent to the bank.

On payment Dubai police will life the travel ban and allow the expat to board an aircraft.

Dubai is the first to lift the travel ban – expats in Abu Dhabi and other Gulf States have also fallen victim and had to cancel urgent travel plans.

The new payment system has been in place since March 20.

Expats can pay their credit by cash, credit card or debit card in to a special account at the airport branch of the Emirates National Bank.

Thousands banned from travel

In January, an estimated 42,000 expats from a dozen countries in Kuwait alone were unable to leave the country due to credit debt travel bans. The ban also affected around 48,000 Kuwaitis.

Kuwait also has a pay-as-you-go facility at the airport, but not at land borders.

Expats face similar problems in Qatar and Bahrain.

In some cases, expats have reported that immigration officers in Qatar have held them on notifications from the UAE that they have unpaid debts.

Gulf state courts have also tried to extradite expats from the UK who fled with unpaid debts.

However, British courts decided extradition did not apply in civil debt matters and rejected the applications.

The last case involved a British woman who owned a property in Dubai who left the country with mortgage arrears.

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