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CMS helps businesses recover debt, reduce risk, and improve receivables performance across the UAE and beyond.
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Every week brings another headline about the GCC: record foreign direct investment, mega-projects, a young and fast-growing consumer base. It’s easy to read the coverage and conclude that entering this market is simply a matter of showing up with a good product and the right local partner. But...
Credit Management, CFO, Business Ownership, Leadership
Credit management sits at an uncomfortable intersection. On one side: the pressure to collect, to protect the balance sheet, to hit the numbers. On the other: a human being, a business owner, a family, on the receiving end of every decision we make. How we hold that tension...
Credit Management, CFO, Cash Flow, Bad Debt, Receivables, Debt Collection
You have worked hard to get where you are. The qualifications. The years of experience. The financial modelling, the board reporting, the treasury management, the audit cycles, the investor relations, the strategic planning. The ability to look at a complex set of numbers and understand immediately what they...
CreditRating, KYC, CFO, Financial Transparency
There’s a pattern emerging across B2B lending and credit markets that deserves a direct conversation — companies pursuing credit facilities while simultaneously resisting the very process designed to secure them. The Disconnect at the Heart of B2B Credit When one business extends credit to another — whether through...
Credit Management, Cash Flow, Bad Debt, Debt Collection, Credit Policy
Board directors carry a fiduciary responsibility for the businesses they govern. They are there to provide oversight, to challenge executive decisions, to ensure that the organisation is managing its risks appropriately and building sustainably for the long term. That responsibility covers financial risk. It covers operational risk. It...
Credit Management, Cash Flow, Bad Debt, Credit Policy, Receivables
Credit management suffers from a perception problem. In the minds of most business leaders, it is a back-office function. A necessary administrative overhead. Something that happens after the sales team has done the real work. Something that matters when things go wrong but is otherwise invisible. That perception...
Credit Management, Cash Flow, Bad Debt, Receivables, Credit Policy
It is one of the oldest questions in trade credit. And it remains genuinely unresolved in most businesses — not because the answer is unknowable, but because most businesses have never systematically looked for it. Do you change payment behaviour more effectively by rewarding early payment — discounts,...
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UAE, Credit Management
Doing business in the UAE offers enormous opportunity — but it also comes with legal obligations and protections that every company should understand. Whether you are extending credit to clients, chasing overdue invoices, or dealing with a defaulting debtor, knowing the relevant UAE laws will help you act faster and more effectively.
Federal Law No. 18 of 1993 (the Commercial Transactions Law) and its subsequent amendments govern commercial dealings between businesses in the UAE. This law covers contracts, payment obligations, and the rights of creditors when debts go unpaid. It provides a legal framework that, when navigated correctly, strongly supports creditors pursuing legitimate claims.
The UAE has historically treated bounced cheques as a criminal offence, not just a civil matter. While recent reforms have decriminalised some cheque-related offences for first-time, low-value cases, issuing a cheque with insufficient funds can still carry serious consequences. Many UAE businesses use post-dated cheques as security — understanding their legal weight is essential.
The UAE has a well-established court system for commercial disputes, including the Dubai Courts, Abu Dhabi Courts, and specialised financial courts such as the DIFC Courts and ADGM Courts. Choosing the right jurisdiction can significantly affect the speed and outcome of your case. Free zone companies may have different options available to them.
The UAE actively encourages alternative dispute resolution (ADR), including mediation and arbitration. The Dubai International Arbitration Centre (DIAC) and the DIFC-LCIA Arbitration Centre are well-regarded institutions. For many B2B disputes, mediation is faster, cheaper, and less damaging to business relationships than full court proceedings.
Federal Decree-Law No. 51 of 2023 introduced significant updates to the UAE's insolvency framework, making it easier for financially distressed companies to restructure rather than face immediate liquidation. As a creditor, understanding these provisions is important — a debtor in formal insolvency proceedings must be approached through the correct legal channels.
To protect your business legally, ensure all credit extended is backed by a signed agreement, include clear payment terms (30, 60, or 90 days), specify the governing law and dispute resolution mechanism, obtain a credit application form from all new clients, and conduct due diligence using Business Intelligence Reports before extending significant credit.
Navigating UAE credit law can be complex. CMS Credit Management Services LLC works alongside our legal partner Al Dahbashi Gray to guide UAE businesses through every stage — from credit policy setup to debt mediation and pre-legal action — ensuring you stay on the right side of the law while protecting your bottom line.
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