The 2024 Payment Practices Barometer survey for the United Arab Emirates was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for the United Arab Emirates   

B2B credit risk strains cash flow of businesses in United Arab Emirates

• Late payments currently affect an average of 51% of B2B credit sales, meaning more than half of invoiced sales are overdue. About 4% of all B2B invoices have become bad debts,
  which not only results in lost revenue but can also put strain on operational funds and increase fixed costs.
   
• Around 40% of companies in the United Arab Emirates say late payments are caused by inefficient payment processes. Invoice disputes are another factor, and it takes most businesses an average of one month past due to collect payments. This impacts on cash flow and increases reliance on external short-term finance.

Negative outlook on insolvency risk among United Arab Emirates companies

• Companies in the United Arab Emirates are pessimistic about prospects for insolvency 
  risk. 59% of businesses, particularly in the FMCG industry, expect insolvencies among their customers to worsen in the coming year, although other industries anticipate a stable trend.
   
• A major concern looking ahead for companies in the United Arab Emirates is the impact of shifting domestic and global economic conditions, as well as ongoing geopolitical
  tensions. Many businesses are increasingly worried about cybersecurity threats, particularly in the Fast-Moving Consumer Goods (FMCG) sector

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable  insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers. 

Interested in finding out more?

For a complete overview of the 2024 survey results for the United Arab Emirates, please download the full report available in the related documents section below. 

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