UAE economic and business landscape shifts

The UAE economy is experiencing a shift in consumer and business dynamics. In the first half of 2026, UAE online retail grew by 2% year-on-year, contrasting with a 9% decline in the wider Gulf region. This growth was driven by higher average order values and a surge in mobile commerce, which accounted for 53% of all online sales. Simultaneously, digital transformation and new regulatory requirements, such as e-invoicing mandates and corporate tax changes, have prompted small and medium enterprises to adopt cloud-based accounting.

By August 2026, business liquidity has come under pressure due to persistent payment delays. While trade credit accounts for 47% of B2B transactions, approximately 40% of B2B invoices are being paid late, particularly within the industrial and construction sectors. These delays, largely driven by customer cash flow constraints, have led nearly half of surveyed companies to report higher financing needs and reduced liquidity. In response, businesses are increasingly adopting stricter credit controls and credit insurance to mitigate rising default risks.