In debt-laden Dubai, Dickensian debtors law can come in handy | Beyond Brics | FT.com

The Dickensian debtors laws of the United Arab Emirates - stipulating jail sentences for defaulters - have long been a matter of controversy in the country, but seems to have won unexpected backing by HSBC, one of the largest international lenders in the region.

In an interview with local magazine Arabian Business, HSBC Middle East’s UAE head Abdulfattah Sharaf, indicated that although the bank always strived to ensure that debtors did not end up in gaol, the harsh debtors laws were an effective deterrent to potential defaulters.

“It has worked for us. People immediately get people to come and bail them out, and get the money in… (historically) it did work. In most cases it did work,” he said in an interview.