Alsuwaidi & Company

UAE: Will I be stopped at the airport for an ongoing loan?

Mohamed Elmasry’s recent contribution to the Gulf News  focuses on how can you move out of the UAE even if you have upcoming installments. 


Dubai: if you are planning to move out of the UAE because of a new job offer, how will your decision affect any ongoing loans you have? A Gulf News reader wrote in asking this question.

She said: “Kindly advise me regarding my ongoing loan of Dh48,000. I signed up for it in February 2022. I would like to work in the UK but I still have a balance loan amount to repay. Am I going to be stopped by the immigration authorities at the airport, even though I’m paying the installments on time?”

Gulf News raised the query with Mohamed Elmasry, Associate at Alsuwaidi and Company, who spoke about the various aspects that need to be considered when a person has an ongoing loan.

Referring to Article 635 of the commercial transaction law, Elmasry explained when a travel restriction is placed.

“It is always advisable to pay off any loan amount before you decide to leave the country”

He said: “In the event that a borrower or debtor does not pay one of the installments at its due date, the bank will proceed with the required legal action by registering an ‘execution by cheques file’ before the competent court, accordingly banning the borrower or debtor from traveling.”

Also, if an individual leaves his or her employment in the UAE, the former employer may send a notice to the bank, informing them of the termination of the employment contract. If this happens, the bank would freeze the account, in lieu of the unpaid loan amount.

“This is why it is always advisable to pay off any loan amount before you decide to leave the country,” Elmasry said. 

To speak with the author, please contact Mohamed Elmasry  on [email protected]