Blogs

Expanding internationally brings enormous opportunities—but also exposure to risks that can impact cash flow, supply chains, and long-term growth. For UAE exporters, understanding and preparing for these risks is crucial to building a resilient and secure export strategy.

Here are the top 5 risks that can disrupt your export business—and how Etihad Credit Insurance (ECI) helps you stay protected.

1. Buyer Insolvency or Non-Payment

A buyer going bankrupt or simply failing to pay can significantly affect your cash flow—especially if you're shipping on open credit terms.

How to mitigate it:

✔ Use trade credit insurance to protect your receivables.

✔ ECI covers up to 90% of the invoice value if your buyer defaults or delays payment.

✔ Access our global database of 400+ million buyers for credit checks and pre-shipment risk assessments.

2. Political and Economic Instability

Unrest, sanctions, or abrupt policy changes in your buyer’s country can delay or block payments, confiscate goods, or force you to abandon operations altogether.

How to mitigate it:

✔ ECI’s Political Risk Insurance protects against non-commercial risks like civil war, expropriation, currency inconvertibility, and contract frustration.

✔ Monitor political developments in your target markets and diversify risk across multiple countries.

3. Supply Chain Disruptions

Delays in transportation, shortages of key inputs, or breakdowns at the port can affect delivery timelines—and your ability to get paid.

How to mitigate it:

✔ Secure coverage for delayed or interrupted shipments through ECI.

✔ Maintain flexible sourcing strategies and communicate regularly with logistics partners.

✔ Protect your receivables even if delivery delays affect payment.

4. Currency Fluctuations and Payment Restrictions

Foreign exchange volatility and transfer restrictions can prevent you from receiving the full value of your transactions—or accessing your earnings at all.

How to mitigate it:

✔ Insure against losses resulting from currency inconvertibility and blocked transfers.

✔ Work with ECI to structure insured transactions in stable or hedged currencies where possible.

5. Fraud or Misrepresentation

Fake buyers, forged documents, and export fraud can lead to major financial losses, especially in unfamiliar markets.

How to mitigate it:

✔ Conduct thorough due diligence with ECI’s credit risk tools.

✔ Ensure contracts are vetted and supported by secure payment methods like LCs or credit-insured open terms.

✔ Use ECI’s expertise to flag high-risk buyers and markets early.

Conclusion

Exporting is never risk-free—but it can be risk-ready. With the right tools and expert support, you can protect your business from disruptions and trade with greater certainty.

Etihad Credit Insurance works with UAE exporters to identify risks, structure coverage, and support secure growth into new markets.

👉 Explore ECI’s solutions and find out how we help protect your exports—before risk becomes reality.

Protect your business, secure your trade.