According to the UAE Central Bank, the country processed more than Dh18.84 trillion in payments last year, of which Dh17.16 trillion were made via the UAEFTS, the central bank’s fund transfer system. However, micro and small businesses are having issues due to deferred payments exceeding six months.
As per the 2023 Atradius Payment Practices Barometer, up from 53 percent, up to 56 percent of all business-to-business (B-2-B) payments made in the UAE for goods and services are late payments, with an average duration of roughly 70 days.
In the UAE and GCC, checks, instant payment systems, direct debit systems, and fund transfers are used for the majority of business transactions. Over 750,000 businesses are operational in the United Arab Emirates, producing millions of invoices and handling over Dh1.31 trillion in payments annually.
The Image Cheque Clearing System (ICCS) handled 22.9 million checks totalling Dh1.31 trillion, according to the Central Bank of the UAE (CBUAE). This represents a 3.14 percent increase in value and a 1.1 percent increase in volume over 2022.
According to the Central Bank of the UAE (CBUAE), 64.1 million transactions totalling Dh164.7 billion in payments were made through the UAE Central Bank’s Instant Payment System in 2023 as opposed to 38.3 million transactions totalling Dh101.2 billion in 2022. This does not include the 5.9 million salary payment in 2023.
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