In 2023, the UAE processed more than Dh18.84 trillion worth of payments, with Dh17.16 trillion through the Central Bank’s Fund Transfer System. However, delayed payments of 6 months or more are causing issues for micro and small businesses. Atradius Payment Practices Barometer 2023 revealed that 56 percent of B2B payments in the UAE are late, with 70 days being the average delay.
The majority of business transactions in the UAE and GCC are conducted through various payment systems like cheques, instant payment systems, direct debits, and fund transfers. With over 750,000 active businesses generating millions of invoices, more than Dh1.31 trillion in payments is processed annually. The Central Bank processed 22.9 million cheques worth Dh1.31 trillion through its Image Cheque Clearing System in 2023.
One of the major challenges faced by businesses in the GCC region is deferred payments, post-dated cheques with outstanding credit, late payments, and non-payment of dues. The lack of a regulated escrow system contributes to the drain of resources in recovering bills. In Dubai, real estate transactions use escrow accounts while other sectors lack such a system.
Trustin Limited, a digital escrow platform based in the UAE, recently launched its operation after securing Financial Service Permission from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority. Operating within the regulatory framework of the FSRA, Trustin aims to provide real-time transparency and security, making transactions more cost-effective and efficient for businesses.
Trustin’s digital escrow platform offers enhanced security, compliance, and transparency in transactions, catering to SMEs and retail businesses. By eliminating the risks associated with open trade and providing a regulated neutral party to facilitate transactions, Trustin aims to build trust in trade activities. The platform is built on cutting-edge technology and integrates with a major bank in the UAE for client money protection.
With the rise of digital payments and the growing need for secure and transparent transactions, Trustin’s digital escrow services provide a solution to the challenges faced by businesses in the UAE and GCC. By offering a regulated and trustworthy platform, Trustin aims to simplify and democratize escrow services for all users, ensuring a safe and efficient transaction experience.
