Trade Credit Insurance in the UAE: A Guide for Businesses
How to protect your receivables when customers don't pay, what insurers need, and how credit limits work.
✓ Since 1995 · ✓ Central Bank of the UAE Reg. No. 081 · ✓ Compared across leading UAE insurers
When you sell on credit terms, your unpaid invoices are often one of your biggest assets, and one customer failing to pay can wipe out months of profit. Trade credit insurance pays you if a customer can't or won't pay. This guide explains how it works in the UAE and what insurers need to quote. It's written by Al Berwaz Insurance Brokers, licensed by the Central Bank of the UAE (Registration No. 081).
What trade credit insurance covers
| Risk | What it means |
|---|---|
| Insolvency | Your customer goes bankrupt or into liquidation |
| Protracted default | Your customer simply doesn't pay within an agreed period after the due date |
| Political risk (export sales) | Events in the buyer's country, such as currency transfer restrictions or war, stop payment reaching you |
How credit limits work
For each customer, the insurer sets a credit limit: the most it will cover for that buyer at any time. Limits are based on the insurer's own research into the buyer's finances. Insurers can reduce or withdraw a limit if a buyer's situation worsens, which also works as an early warning for you. Sales above the limit aren't covered.
Domestic and export sales
Cover can include sales to UAE customers, export customers, or both. For exports, Etihad Credit Insurance, the UAE federal export credit company, also offers credit insurance alongside private insurers. A broker can compare both routes.
Who it suits
- Traders, distributors and manufacturers selling on 30 to 120-day terms
- Subcontractors and suppliers to the construction sector
- Businesses with a few large customers making up most of their sales
- Exporters selling to new markets
What isn't usually covered
- Debts already overdue when the policy starts
- Disputed invoices, until the dispute is settled in your favour
- Sales to related companies
- Amounts above the customer's credit limit
How premiums are calculated
Premium is usually a small percentage of your insured turnover. Insurers look at your total credit sales, your payment terms, your customers' sectors and countries, how concentrated your sales are, and your history of bad debts.
What to prepare for a quote
- Turnover: annual credit sales, split by UAE and export.
- Customers: a list of your main customers with the credit you give each.
- Terms: your normal payment terms.
- Aged debtors: a current aged-debtor report.
- Bad debts: losses over the last three to five years.
Why use a broker?
Trade credit policies differ a lot in limits, waiting periods and reporting rules. A broker compares insurers, helps you keep up with reporting so claims aren't refused, and supports you through claims. Broker commission is built into the insurer's premium, so using a broker doesn't add to your cost.
Got questions? We've got answers
Quick answers to other questions businesses ask us about trade credit insurance.
Ask Us a QuestionDo we have to insure all our customers?
Most policies cover your whole book of credit customers, or a defined part of it, rather than hand-picked buyers. This spreads the risk and keeps the premium lower. Some insurers offer cover for key customers only.
What happens if a customer is already late paying?
Debts that are already overdue when cover starts are normally excluded. During the policy, you must report overdue accounts to the insurer within the time the policy sets, or the claim may be refused.
Can trade credit insurance help us get bank financing?
Often, yes. Insured receivables are a stronger security for a bank, and many policies allow the claim payments to be assigned to the lender. Ask your bank what it accepts.
Does it cover all of the unpaid amount?
Usually a percentage of the insured debt, not 100%. You keep a share of each loss, so you still have a reason to manage credit carefully. The exact percentage depends on the insurer and policy.
✓ Serving Abu Dhabi businesses since 1995
✓ Licensed by the Central Bank of the UAE (Reg. No. 081)
✓ Trade credit cover for domestic and export sales
Sources:Etihad Credit Insurance: frequently asked questions. Checked October 2026.
This guide is general information, not legal or financial advice. Terms differ between insurers. Cover is subject to the policy terms, conditions and exclusions of the issuing insurer.