Trade Finance UAE

Trade Finance UAE

Trade Finance UAE: Arrange the Right Facility, the First Time

Trade finance in the UAE is not a single product — it is a family of bank-issued instruments and credit lines that keep goods moving, suppliers paid and cash flow stable. At Infinite Horizons FZE, our trade finance advisors have structured facilities for UAE-based importers, exporters, general trading companies and contractors across Dubai, Sharjah, Abu Dhabi and the other emirates.

This page explains what trade finance covers, which facility fits which situation, and how we help your company get approved.

What Is Trade Finance and Why Does It Matter in the UAE?

The UAE handled over AED 2.5 trillion in non-oil foreign trade in 2023, making it one of the top five re-export hubs globally. For the companies behind those numbers — importers, traders, manufacturers, contractors — the gap between paying a supplier and receiving payment from a buyer is the defining financial challenge.

Trade finance closes that gap. Instead of tying up your own cash or waiting for buyer payments, you use bank-issued instruments to fund purchases, guarantee your obligations, and discount receivables the moment an invoice or cheque is raised.

For UAE companies specifically, trade finance matters because:

  • UAE banks follow ICC rules (UCP 600 for letters of credit, URDG 758 for guarantees), which are internationally trusted
  • Free zone and mainland companies alike can access facilities, though documentation requirements differ
  • The CBUAE's regulatory framework gives counterparties confidence in UAE-issued instruments

Our Trade Finance Services in the UAE

Infinite Horizons FZE arranges the following facilities through licensed UAE banks. We act as your advisor, not as a lender — every facility is issued by a regulated bank on your behalf.

Bank Guarantee

A written commitment from a UAE bank to pay a named beneficiary if you fail to meet a contractual obligation. Used for performance guarantees, advance payment guarantees, tender bonds and payment guarantees.

Letter of Credit (LC)

A bank-issued payment instrument guaranteeing a seller will be paid once shipping and documentation conditions are met. Available as sight LC, usance LC (30–120 days) and standby LC (SBLC).

Overdraft Facility

A revolving credit line allowing your company to draw funds beyond your account balance up to a pre-approved limit — the most flexible working capital tool for UAE trading companies.

Supplier Invoice Payment

Your supplier needs payment today; your buyer pays in 60 days. The bank pays your supplier on your behalf and you repay on agreed terms. Common for imports from Asia, Europe and Africa.

Client Invoice Discounting

Receive up to 80–90% of an invoice's value from the bank immediately after raising it, rather than waiting 30–90 days for buyer payment. Improves cash flow without taking on new debt.

Cheque (PDC) Discounting

A UAE-specific facility. The bank advances funds against post-dated cheques from your clients before the payment date. Widely used in construction, real estate services and B2B trading.

Trade Lines

A pre-approved credit facility allowing your company to open multiple LCs or guarantees up to an agreed limit without fresh approval each time — reducing transaction time and cost for active traders.

Who We Work With

We advise UAE companies that:

  • Are registered as mainland, free zone or offshore entities in Dubai, Abu Dhabi, Sharjah or the other emirates
  • Have been operating for at least one year (banks typically require 12 months of audited accounts)
  • Are in trading, contracting, manufacturing, logistics or services
  • Need facilities between AED 500,000 and AED 50 million

If you are not sure whether you qualify, speak to one of our advisors. We assess your position honestly before we approach a bank.

How the Process Works

1

Free Facility Assessment

We review your requirement, your company profile and your existing banking relationships. This takes one meeting or a short call, with no obligation.

2

Bank Selection & Application Preparation

We identify the bank most likely to approve your facility based on your turnover, sector and collateral, then prepare the full application pack including financial projections and transaction details.

3

Submission & Negotiation

We submit to the bank, respond to queries and negotiate terms — limit, tenor, margin and fees — on your behalf.

4

Facility Activation

Once approved, we walk you through the documentation and ensure the facility is activated correctly. For LCs and BGs, we review every instrument before it is issued.

Why Use an Advisor Rather Than Going Directly to Your Bank?

UAE banks receive large volumes of trade finance applications. Applications that are incomplete, misclassified or submitted to the wrong bank are declined — often without detailed feedback.

Our advisors have worked on the bank side of trade finance transactions. We know what credit committees look for, what documentation is non-negotiable, and which banks are currently active in approving facilities for companies at your stage.

Using Infinite Horizons FZE does not add hidden cost to your facility. We charge a professional advisory fee that is disclosed upfront, and our work starts only once you agree to proceed.

Frequently Asked Questions

How long does it take to get a trade finance facility in the UAE?
Most facilities take four to eight weeks from submission to approval. The timeline depends on the bank, the complexity of the facility and how quickly you can provide documentation. We manage the process to avoid unnecessary delays.
Can a free zone company get trade finance in the UAE?
Yes. Free zone companies can access LCs, bank guarantees and overdraft facilities from UAE banks, though some banks have restrictions on specific free zones. We know which banks are active for free zone clients and structure applications accordingly.
Do I need collateral for a bank guarantee or LC?
Most UAE banks require a cash margin deposit (typically 10–25% of the facility value) or a property or fixed-deposit pledge. We advise on the most efficient collateral structure for your situation.
What is the difference between a performance bond and a bank guarantee?
In the UAE market, these terms are used interchangeably. Both are written commitments from a bank to pay a beneficiary if the applicant fails to perform an obligation. The underlying document is a bank guarantee issued under URDG 758 or the bank's own guarantee format.
What is the minimum company age for a trade finance facility?
Most UAE banks require at least 12 months of audited financial statements. Some banks consider companies with 6 months of trading history if the transaction is fully margined. We advise on the best route for newer businesses.

Get a Free Trade Finance Assessment

Speak to one of our advisors. We will review your requirement, tell you whether it is bankable, and outline the fastest route to approval — with no obligation.

Get Free Quote

Infinite Horizons FZE is a trade finance advisory firm registered in the UAE. Facilities are arranged through licensed UAE banks. We are not a lender. All facility approvals are subject to individual bank credit policies.

Contact

Al Andalus Building, Office M-15

Dubai, UAE

info@ihc-fze.com

Call our Experts
+971 4 351 3626

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