According to the UAE Central Bank, the country processed over Dh18.84 trillion in payments last year, with Dh17.16 trillion being handled through the Central Bank’s Fund Transfer System (UAEFTS). However, deferred and delayed payments, often extending up to six months or more, are posing significant challenges for micro and small enterprises. Atradius Payment Practices Barometer 2023 reveals that 56 percent of business-to-business (B-2-B) payments in the UAE for 2023 are delayed, averaging around 70 days, an increase from 53 percent. On-time payments decreased to 33 percent in 2023 from 38 percent in 2022, while bad debt rose by 3 percentage points to 11 percent, up from 8 percent in 2022.

The majority of transactions in the UAE and GCC are conducted via cheques, instant payment systems, direct debit systems, and fund transfers. The UAE supports over 750,000 active businesses, which process more than Dh1.31 trillion in payments annually. The Central Bank of the UAE (CBUAE) reports that 22.9 million cheques worth Dh1.31 trillion were processed through its Image Cheque Clearing System (ICCS), showing a 1.1 percent increase in volume and a 3.14 percent rise in value compared to 2022. Deferred payments, post-dated cheques with 3-6 months of outstanding credit, lack of timely payments, and non-payment of dues significantly impact businesses in the GCC region, draining resources in bill recovery, a critical issue in the private sector.

In 2023, the UAE Central Bank’s Instant Payment System facilitated 64.1 million transactions valued at Dh164.7 billion, a significant increase from Dh101.2 billion through 38.3 million transactions in 2022, excluding salary payments. The UAE Wages Protection System (UAEWPS) saw an increase in registered employees from 5.2 million in 2022 to 5.9 million in 2023, with the value of paid salaries rising to Dh296 billion from Dh246 billion in 2022. The number of employers registered in the UAEWPS also increased to 306,450 from 275,680, marking an 11 percent rise compared to 2022. The Central Bank’s Fund Transfer System (UAEFTS) recorded 89.5 million transactions totaling Dh6.14 trillion for individual transfers in 2023, showing a 20 percent increase in volume and a 25 percent increase in value compared to 2022. Institutional transfers reached 674,000 transactions amounting to Dh11 trillion, reflecting a yearly increase of 6.44 percent in volume and 41.3 percent in value.

Trustin Limited, the UAE's first Digital Escrow Platform, has launched operations after obtaining Financial Service Permission (FSP) from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA). This license positions Trustin as the first of its kind in the UAE and the broader Middle East region, serving as a trusted partner for safeguarding transactions for institutions and retail clients. Trustin aims to simplify and democratize escrow services through a digital platform, offering real-time transparency and security, potentially enhancing the transaction experience for consumers, small businesses, and enterprises. Trustin addresses the risks associated with open trade, particularly among SMEs and the retail market segment, providing enhanced security, compliance, and transparency to ensure safe and efficient transactions.