Introduction

The Execution, Debt Collection and Distressed Assets Department is one of the principal specialist departments of Al-Tuwaijri & Partners Law Firm. Established approximately thirty years ago, the Department has operated as a distinct and independently structured unit within TLF Group, with its own administrative framework, dedicated teams, and specialized operational and follow-up procedures. This organizational model was adopted to ensure sustained focus on the execution of judgments, debt recovery, the realization of creditors’ rights, and the management of distressed portfolios through a structured, institutional, and specialist approach. The establishment of the Department reflected TLF Group’s recognition that execution and debt collection services require a distinct operational framework, separate from the conventional practice of law. These activities demand continuous, day-to-day follow-up, effective communication and negotiation skills, a thorough assessment of debtors’ legal and financial positions, and the ability to move efficiently between amicable recovery efforts, legal proceedings, and Execution measures, as appropriate to the circumstances of each case.

Over the years, as the Department’s caseload expanded and the number of clients and portfolios entrusted to it increased, TLF Group progressively developed a specialized administrative and technical infrastructure capable of addressing a broad spectrum of requirements through different mechanisms and procedures. Rather than adopting a uniform approach, the Department develops tailored collection and execution strategies that reflect the characteristics of each portfolio and the specific objectives and requirements of each client.

This case-specific approach is guided by a central objective: to identify and pursue the most effective and appropriate means of recovering outstanding debts and securing clients’ rights, whether through amicable collection, negotiation and settlement, or, where an amicable resolution cannot be achieved, judicial proceedings and execution measures.

This comes within a main target of reaching the optimal method for recovery of rights. Our works integrate through employing the amicable debt collection, judicial execution, the tracing of funds and assets, the recovery of distressed debts, the management and recovery of distressed assets, bankruptcy and restructuring, the execution of foreign judgments, international debt collection, the management of execution files, inquiries and investigations, and the preparation of reports and analytical studies. Collectively, these services provide a coordinated and integrated framework for debt management, recovery, and asset realization, enabling the Department to respond effectively to the particular circumstances of each case while remaining aligned with the legal requirements and commercial objectives of each client.

Extensive Institutional Experience

Over the past three decades, the Department has built a substantial body of institutional and practical experience in managing execution files and recovering a wide range of debts. Its experience extends to portfolios entrusted to it by banks and financial institutions, finance and investment companies, credit card issuers, telecommunications companies, public and private institutions, and other entities. The scale and diversity of the files handled have enabled the Department to develop considerable expertise across every stage of the debt recovery process. This encompasses the initial receipt and review of files and supporting documentation, communication with debtors and the pursuit of amicable recovery, the initiation of appropriate legal proceedings and execution measures, and the preparation of financial and accounting reports documenting the amounts recovered.

The Department operates under a structured model founded on specialization, the clear allocation of responsibilities, and continuous performance monitoring. Dedicated teams are assigned specific functions within the collection and execution process, supported by appropriate supervisory and administrative structures designed to ensure effective coordination, consistency, and continuity throughout all stages of each file.

Al-Tuwaijri & Partners Law Firm was among the early law firms in the Gulf and Middle East region to secure membership in the Commercial Collection Agencies Association (CCAA) in the United States of America in the field of commercial debt collection and funds recovery. From an early stage, TLF Group has pursued the development of its Execution and collection practice through an institutional framework informed by international professional expertise, recognized practices, and specialized industry experience. This membership, together with the Group’s international professional relationships, has further strengthened its capacity to manage claims involving cross-border elements, particularly where the creditor and debtor are located in different jurisdictions or where the debtor’s assets are situated outside the country in which the debt arose.

As its Execution and collection practice expanded significantly, accompanied by an increase in the number of teams, clients, and portfolios entrusted to the Group, the decision was taken several years ago to establish the activity as an independent department. This structure enables the Department to allocate dedicated human, technical, and technological resources to its operations, implement independent performance measurement frameworks, develop internal procedures and staff training programs, and systematically monitor recovery results, while maintaining close coordination with TLF Group’s legal, financial, accounting, and technical departments.

The Department’s organizational independence is not intended to isolate its operations from the Group’s wider practice. On the contrary, effectiveness of the Department depends widely on the close integration among the amicable collection teams, lawyers, accountants, liaison officers, and the legal follow-up and Execution teams. This coordinated operating model brings together the complementary expertise required to manage recovery files efficiently and pursue clients’ rights through the most appropriate available channels.

Experience in Managing Institutional Portfolios

The Department’s longstanding engagement with banks, financial institutions, finance companies, and other corporate and institutional clients has enabled it to develop specialized capabilities in managing large-scale portfolios involving substantial numbers of debtors. Such portfolios demand a distinct operational model that goes beyond the handling of individual claims, requiring systematic file allocation and monitoring, clearly defined performance indicators, dedicated communication and supervisory teams, comprehensive financial and legal reporting, and mechanisms for the continuous updating and verification of data.

In response to these requirements, the Department has progressively strengthened its human resources and technological infrastructure to support the efficient management of institutional portfolios within a structured and professionally administered framework.

Effective client communication is an integral component of this model. The Department maintains communication channels through call centre personnel, supervisors, periodic reporting, and other technological tools, enabling clients to monitor collection performance, amounts recovered, the status and progress of individual files, and relevant legal and Execution developments in accordance with the reporting and communication arrangements agreed with each client.

This framework facilitates the ongoing assessment of results and allows collection strategies and operational priorities to be adjusted as circumstances require. It also reflects a fundamental characteristic of the Department’s approach: successful debt recovery cannot be achieved through legal work alone. While legal expertise constitutes a central component of the process, effective recovery also depends on communication and negotiation, administration and accounting, financial analysis, technology, and the systematic preparation and analysis of data and reports. By bringing these complementary functions together within a single department, the Group promotes operational coordination, accountability, and a consistent focus on recovery outcomes.

Cross-Border Debts and International Debt Collection

The impact of TLF Group’s regional presence gives further enhancement to the Department in terms of handling claims involving multiple jurisdictions. For example, a creditor based in the State of Kuwait may seek to recover a debt from a debtor located in the Kingdom of Bahrain or the Kingdom of Saudi Arabia, or the circumstances may be reversed. Similarly, assets available for recovery may be situated in a jurisdiction different from that in which the underlying debt arose. In such cases, the Group can coordinate its efforts through its branches and established international professional relationships to develop a coherent strategy for pursuing the claim across the relevant jurisdictions.

International debt collection presents particular legal and commercial complexities arising from differences in national legal and judicial systems of enforcement in each jurisdiction, the procedures governing the assertion and Execution of rights, and the requirements applicable to the recognition and Execution of judgments. These challenges may be compounded by differences in language, business practices, commercial culture, and banking systems.

Against this background, the Execution, Debt Collection and Distressed Assets Department provide specialized services for the recovery of cross-border debts and international financial claims. These services draw on the Department’s intensive legal and practical experience, supported by a broad network of professional partners, lawyers, and specialists across numerous jurisdictions. This enables the Department to coordinate the handling of international recovery files with due regard to the applicable laws, regulations, and procedural requirements in each relevant jurisdiction.

The Department manages the various stages of international debt recovery, beginning with a comprehensive review of the file, an assessment of the legal merits and enforceability of the claim, and an examination of the relevant contracts, invoices, and supporting evidence establishing the debt. This is followed, as appropriate, by direct engagement with the debtor, the issuance of formal demands and legal notices, and negotiations aimed at achieving an amicable settlement or restructuring outstanding financial obligations. Where an amicable resolution cannot be achieved, the Department coordinates with local counsel and the competent authorities in the relevant jurisdiction to pursue the necessary judicial proceedings and Execution measures, subject to applicable law.

Throughout the process, the Department places particular emphasis on transparency, accountability, and keeping clients appropriately informed. Periodic reports provide updates on the progress of each matter, the status of the relevant proceedings, recovery progress, and the legal recommendations considered appropriate at each stage.

Drawing on its extensive experience in Execution and debt collection, the Department delivers coordinated recovery solutions designed to assist companies, institutions, and investors in realizing their financial rights, mitigating credit exposure, and improving cash flow. Through a structured and commercially focused approach, the Department seeks to support clients in protecting their financial interests and sustaining their business operations and growth across regional and international markets.

Prospective Expansion into the Kingdom of Saudi Arabia

Expansion into the Kingdom of Saudi Arabia represents a key strategic growth objective for the Execution, Debt Collection and Distressed Assets Department. As part of this expansion strategy, TLF Group has already commenced operations through an initial team at its Al Khobar branch, comprising eleven employees specializing in debtor communication and amicable debt collection. In parallel, the Group is progressing with plans to establish larger operational centers at its Riyadh and Jeddah branches. Upon completion of the planned expansion, the total workforce across the three branches is expected to exceed approximately 180 employees, encompassing personnel dedicated to debtor communication and amicable collection through the Call Center, as well as specialized teams dedicated for handling legal Execution procedures. The successful implementation of this expansion plan is expected to substantially strengthen our regional operational capacity and extend our network of communication and collection centers, currently operating in Kuwait, Bahrain, and Egypt, to include the Saudi market.

This strategic initiative forms part of TLF’s broader vision of developing the Execution, Debt Collection and Distressed Assets Department beyond its existing role as a specialized department into an integrated regional network dedicated to the recovery of financial rights and the effective management of debts and distressed assets.

Quality Assurance and Institutional Oversight

Since establishment of the Department, TLF Group has maintained a firm commitment to structured operational procedures, clearly defined responsibilities, systematic performance monitoring as well as a proper documentation of the activities. Approximately eight years after the commencement of its operations, the Department underwent an audit process extending over more than one year under the ISO 9001:2000 Quality Management System. The Department successfully passed the audit in 2004, marking a significant milestone in its institutional development. This achievement reflected the level of organizational maturity attained at that stage and contributed to reinforcing clients’ confidence in the Department’s operational standards, case-management procedures, and follow-up mechanisms.

Recognizing the growing importance of technological solutions in the effective management of execution and debt collection activities, particularly as the volume of files and portfolios requiring accurate and continuous monitoring increased; TLF has adopted a technology-driven approach while carrying out its operations. Accordingly, the Execution, Debt Collection and Distressed Assets Department utilizes internally developed monitoring and case-management systems, supported by advanced electronic communication and connectivity tools. These systems facilitate the systematic administration of files, the tracking of procedural developments, the documentation of communications, the continuous updating of case information and the preparation of operational and management reports.

In addition, TLF Group provides electronic systems designed to enable clients to monitor the status and progress of their files. Through a dedicated electronic link, clients may access the latest available updates concerning their debtors’ files and generate and print relevant reports. This functionality promotes transparency, facilitates timely communication between the Department and its clients, and enables clients to maintain ongoing oversight of their respective portfolios and the progress of recovery efforts.

Organizational Structure of the Execution and Debt Collection Department

The Department operates within a structured organizational framework designed to ensure the effective allocation of duties and responsibilities among specialized teams. This framework supports operational continuity, systematic performance oversight, and coordination among the legal, financial, and operational functions integral to the Department’s activities.

For these purposes, the Department’s organizational structure is divided into the following specialized units:

General Execution Supervisor

The General Execution Supervisor oversees the Department’s execution and debt collection activities and coordinates the work of the relevant teams across the Group’s headquarters and branches. The role also encompasses contributing to the development of operational plans and strategic objectives, as well as monitoring the Department’s activities in the jurisdictions in which the Group maintains execution and collection teams.

In addition, the General Execution Supervisor is responsible for promoting consistency in working methodologies, monitoring operational performance, and ensuring effective coordination and integration among the various teams to support the efficient implementation of the Department’s objectives.

Supervisors

Supervisors oversee execution and amicable debt collection activities conducted through the Call Center and monitor the progress and performance of the portfolios assigned to the Department. They also coordinate with clients to address operational arrangements, clarify requirements, and ensure that the relevant instructions are communicated and implemented effectively.

Their responsibilities further include monitoring the performance of the respective work teams and submitting observations and recommendations concerning the progress of procedures, the effectiveness of follow-up activities, and any matters requiring further attention.

Execution and Collection Team Leaders

Each Execution and Collection Team Supervisor is responsible for overseeing Execution and collection operations relating to a designated client or portfolio, ensuring that the work is conducted in accordance with the approved operational plan and that the prescribed performance standards are maintained.

The Supervisor serves as a key coordination link between the collection team handling the relevant client or portfolio and the supervisory bodies responsible for overseeing the Department’s operations. The role also includes monitoring employee performance, supervising the regular updating of files and records, and ensuring that relevant data remains accurate and current to facilitate effective case management and follow-up.

Liaison Officers

Liaison Officers serve as the principal point of contact between the Department and its clients, maintaining direct communication, following up on client comments and instructions, and coordinating their implementation with the Department’s various operational teams.

Assigning a dedicated Liaison Officer to each client provides a clear and centralized channel of communication for matters relating to the client’s portfolios. This arrangement streamlines coordination, facilitates the timely transmission of instructions, and eliminates the need for clients to communicate separately with multiple teams to obtain updates or address operational requirements.

Amicable Collection Teams (Call Center)

The Amicable Collection Teams are responsible for communicating directly with debtors with a view to securing payment of outstanding obligations and achieving amicable resolutions before resorting to judicial proceedings, where appropriate. Their activities include following up on outstanding debts, issuing payment reminders, monitoring compliance with payment commitments, and assessing opportunities for negotiated settlements or other suitable arrangements, in accordance with the instructions and parameters approved by the client.

TLF Group has substantially expanded its regional operational capacity in this area, with Call Center teams currently deployed across several of its branches. This regional distribution supports the management of collection portfolios across different markets and facilitates the allocation of resources in accordance with operational requirements and client-specific instructions.

Current Distribution of Amicable and Legal Collection Personnel across Headquarters and Branches. Our current amicable and legal collection workforce is distributed across its headquarters and branches as follows:

• State of Kuwait: 45 employees.
• Kingdom of Bahrain: 52 employees.
• Arab Republic of Egypt: 120 employees.
• Al Khobar Branch, Kingdom of Saudi Arabia: 11 employees, reflecting the branch’s recent establishment. The workforce across the three Saudi branches is expected to exceed 180 employees upon completion of the planned expansion.

Accordingly, TLF Group’s current Call Center and amicable collection operations comprise a workforce of 217 employees distributed across Kuwait, Bahrain, Egypt, and Saudi Arabia.

As part of its broader expansion strategy in the Kingdom of Saudi Arabia, whose extensive geographical coverage presents distinct operational requirements, the Group envisages establishing the Riyadh Branch as a principal operational center for amicable debt collection. We also plan to expand the Riyadh Call Center workforce to more than 80 employees in the next phase, with a comparable expansion planned for the Jeddah Branch, subject to the anticipated volume of business and the operational demands of the Saudi market.

These centers operate within a coordinated operational framework that integrates the headquarters, branches, and supervisory teams. This structure facilitates the systematic allocation and management of portfolios according to the nature of the assigned work, the specific requirements of each client, and the operational priorities applicable to each portfolio.

Legal Collection Teams

The Legal Collection Teams are responsible for following up on files in which amicable collection efforts have failed so as to achieve the intended results. Their responsibilities include initiating and coordinating the appropriate legal and execution measures against debtors who have defaulted on their payment obligations or delayed settlement of outstanding amounts, in coordination with the Department’s lawyers and supervisory teams.

Through close coordination with the amicable collection function, the Legal Collection Teams facilitate the timely escalation of unresolved files and support the pursuit of outstanding claims through the appropriate legal channels, having regard to the circumstances of each case and the applicable procedures.

Lawyers

The lawyers oversee the legal and judicial aspects of the Department’s activities, including monitoring court hearings and proceedings before court-appointed experts, following up on execution orders and procedures, and attending to lawsuits, grievances, objections, execution disputes, and other proceedings before the competent judicial and execution authorities.

Working in direct coordination with the Amicable Collection Teams, the lawyers help ensure a coordinated transition from amicable recovery efforts to formal legal proceedings whenever the circumstances indicate that an amicable settlement is unlikely to achieve the desired outcome. This integrated approach supports the timely advancement of claims and the effective pursuit of clients’ legal rights.

Accountants

The Department maintains a dedicated financial and accounting team responsible for preparing comprehensive reports on amounts collected and funds deposited on behalf of clients. Reporting is available at various intervals, including daily, weekly, monthly, quarterly, semi-annual, and annual periods, according to the relevant reporting requirements.

The team is also responsible for preparing periodic clients’ statements of account, monitoring the movement and accounting treatment of collected funds, and compiling financial reports relating to debt portfolios.

Specialized Programs and Services for Debtor Monitoring and Collection Management

1. Supervision and Administrative, Technical and Financial Follow-Up
2. Amicable Communication and Follow-Up Department (Call Center)
3. Execution and Legal Claim Department
4. Al-Wafi Follow-Up Program for Execution and Collection (Specialized software developed internally by TLF)
5. Short Messages Service (SMS)
6. Messages and Letters
7. Dedicated Telephone Lines (land lines and cell phone lines) dedicated for each TLF client
8. One year call recording service
9. Online TLF Payment Gateway Service
10. Service of Following-Up with the Clients and Preparation of Daily / Weekly / Monthly / Quarterly / Yearly Reports.

• In addition to its internal operational systems, the Group has developed a dedicated system for Al-Tuwaijri & Partners Law Firm, known as the Al-Wafi System for the Management and Accounting of Companies and Law Firms, with particular emphasis on the component designed for Execution and debt collection management. The system was developed under the supervision of the Group’s senior management, in collaboration with its Information Technology (IT) Department. The said system incorporates a range of functionalities designed to facilitate the accurate monitoring of files and clients, the retrieval of relevant information, and the generation of reports within a short period of time. The Group has relied on this system for more than twenty years, reflecting its established role in supporting the Department’s operational and case-management requirements. Through the system’s online and mobile-access capabilities, clients can directly access and monitor their files and debtors’ records without having to contact the Group’s supervisors or employees for routine procedural updates. This functionality is available at any time, providing clients with a convenient and accessible means of maintaining oversight of their portfolios and monitoring developments as they arise. The system’s reputation and use extend beyond the Group and its Execution and Debt Collection Department. Over time, Al-Wafi has also become a recognized management solution among companies and law firms engaged in the recovery and management of distressed debts.
• To support the scale and continuity of its execution and collection activities, TLF Group has established dedicated communication infrastructure at its headquarters and branches. By way of example, the Execution and Debt Collection Department at the headquarters has been equipped with 120 dedicated telephone lines for communicating with corporate debtors and clients, in addition to 8 mobile lines and 7 dedicated devices used to communicate with clients through WhatsApp. These facilities are particularly useful when clients do not respond to telephone calls made by the call center agents.
• Comparable communication facilities have been established at the Group’s branches in the Kingdom of Bahrain and the Arab Republic of Egypt. In addition, the branches of the Kingdom of Saudi Arabia will be equipped with all the necessary facilities. The Bahrain Branch has been currently provided with 40 telephone lines, while the Egypt Branch has 50 lines. The Execution and Debt Collection Department at the Al Khobar Branch in Saudi Arabia currently operates with 10 lines, with further expansion anticipated during the next phase of development. It should be also noted that these lines are interconnected between the head office and the branches so that each agent in any branch can contact the debtors in all covered countries without the debtor notices the source of the call and whether it is internal or external.
• The Group has also entered into a local agreement with “Mobile 2000 Co.” for the provision of text messaging services to debtors.
• In addition, our Group maintains a procedure for dispatching written correspondence through its external representatives following verification of debtors’ addresses. Particular attention is given to claims involving amounts exceeding (KWD 500) (approximately USD 1,600), in accordance with the Group’s stated procedures. Letters are also dispatched by post to debtors as part of the Department’s collection and follow-up activities.
• The Group undertakes to provide corporate clients with reports on a monthly, quarterly, semi-annual, and annual basis, enabling them to review collection progress, monitor portfolio developments, and assess the status of outstanding obligations. Where required, the Group is also prepared to provide clients with access to a dedicated software application through which they can review and monitor their debtors’ files online at any time. In addition, a mobile application available through the App Store enables clients to access their files using compatible devices, including iPhone and Samsung devices.
• Moreover, TLF Group utilizes a modern FreePBX telephone system equipped with call-recording functionality, facilities for transmitting voice messages to debtors, and automated outbound calling capabilities through the WombatDialer program. The Group also employs QueueMetrics to support the distribution and management of incoming and outgoing calls among designated teams.
• The Group further employs surveillance cameras and assigns a supervisor to each team as part of its operational oversight and quality-control framework. The Group also reports that, during the period preceding the preparation of this profile, no complaints had been submitted against any of its employees. In parallel, employees participate in periodic training courses and professional development programs designed to promote professional communication standards and appropriate methods of engaging with debtors. These initiatives support the Group’s emphasis on disciplined follow-up, professional conduct, and the consistent delivery of collection services in accordance with its operational standards.