Means of payment in the United Arab Emirates

Collection

Exports to the UAE

  • Documentary Credit:
    A bank commitment to pay against accreditation of export documents. This is a very common means of payment in the UAE and in the region. It is the safest method for exporting goods to the UAE.
  • Collection:
    this involves the collection management of trade documents with the buyer by a local bank. It is more flexible and less costly than a documentary credit, although it does not entail any guarantee of collection. In general, these are documentary remittances with payment by sight drafts.
  • Transfer:
    using the network of BS correspondents in the region. This is the least secure means of payment, so it is essential to know the importer/buyer well.

Payment

Imports from the UAE

  • Documentary Credit:
    a bank commitment to pay against accreditation of export documents, and subject to internationally accepted CCI rules.
  • Import remittance:
    collection management of commercial documents with the buyer by the Spanish bank.
  • Reverse factoring: 
    financing without recourse in favour of foreign suppliers.
    Advance payment is made to the supplier prior to the due date of the invoices, ruling out the risk of non- payment for sales, working out in the benefit of business relations between the Spanish importer and the UAE supplier
  • Simple transfer:
    A common means of payment and collection