Reports say that even though more cheques written in the UAE bounced, the total monetary value attached to those cheques dropped by 25% in the first quarter of 2010.
Data supplied by the Central Bank showed that there was a total of AED18.6 billion in bounced cheques written over those first four months, as compared to AED24.8 billion in the opening quarter of 2009.
The same data showed that the total count of invalid cheques was up over 8 per cent during the quarter, reaching 588,570.
In 2009, the stats showed that one out of every 18 written cheques bounced. Today that number is nearing one out of every 16 cheques, as reported by a UAE web news site.
Sheikh Mohammed bin Rashid Al Maktoum put forth a decree in November of 2009 to put together a committee dealing with bounced cheque cases. The Dubai ruler’s decree was specifically aimed at real estate deals where invalid cheques are exchanged.
The pronouncements made by the committee will be binding and irrevocable and the Dubai ruler granted the committee enough power to go about their duty thoroughly.
In the UAE it is a crime to write a bounced cheque and can result in a prison stint, although admittedly many cases with smaller cheque values are simply settled outside of court.Paul Holdsworth, Staff Writer, Gulf Jobs Market News