The UAE’s B2B payment landscape is becoming more polarised, with businesses facing rising financial pressure as bad debts hit an average of 8% of overdue invoices, according to the latest Atradius Payment Practices Barometer survey.
Conducted in the second half of Q2 2025, the survey found 43% of companies reported no change in payment behaviour, while the rest were split between faster and slower settlements. Half of all B2B sales in the UAE are on credit, with terms averaging 47 days. However, 58% of these are paid late, often due to administrative bottlenecks or financial distress among customers, squeezing working capital.
“The findings highlight a dual reality in the UAE market,” said Roeland Punt, Regional Director for Atradius in the Middle East. “While some businesses continue to experience stable payment behaviour, others are facing growing financial strain. The increase in bad debts and overdue invoices is a clear signal that companies need to reinforce their credit risk frameworks.”
Sector view
Pharmaceuticals reported 50% of sales on credit with 60% overdue and 61% expecting more customer insolvencies. Steel and metals firms saw 55% of invoices overdue but 69% did not expect insolvencies to rise. FMCG businesses kept terms shorter at 40 days but 56% forecast more insolvencies.
Half of all UAE companies expect insolvencies to increase in the next 12 months, with geopolitical risks, regulatory changes and environmental pressures adding to uncertainty.
