UAE Debt Collection Market Outlook to 2027

The report provides a comprehensive analysis of the potential of debt collection market in UAE. The report covers an overview and genesis of the industry, market size in number of cases settled and debt collected.

Its market segmentation includes Segment, type of firm, age of firm, geographical presence and Sub-segmentation of insurance segment & financing segment; growth enablers and drivers, challenges and bottlenecks, trends; regulatory framework; industry analysis, competitive landscape including competition scenario, and market shares of major players on the basis of debt collected and cases settled. The report concludes with future market projections of each segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, UAE Debt Collection Market – which grew at a CAGR of 11.6% in the period of 2017-2022 – is expected to grow at a CAGR of 12.8% in the forecasted period of 2022-2027, owing to increasing emphasis on NLP techniques and changing IT policies and documentation.

• Digital collections are being extensively used which leverages analytics to make the process more efficient.
• Collection agents are being trained to equip them with latest technology and to adept them to various consumer situations for providing more feasible solutions.
• The industry is slowly becoming more customer-centric in its approach.

Key Trends by Market Segment:

By Segment: Non-Finance segment accounted for more than one third percentage of the debt collected and more than half of the cases solved. This segment has low ticket size. Hence, they have major share in total number of cases settled. Majorly cases related to telecom, real estate, manufacturing sector are outsourced for debt collection. Telecom players like Etisalat, Emirates Integrated Technology Company are the biggest clients of debt collection companies in the non-finance segment.

By Geographical Presence: Most of the debt collection agencies and law firms have their presence in Abu Dhabi and Dubai. This happens due to ease of legal structure in these emirates as compared to the others as they have their own local judicial systems and do not follow the federal judicial systems present in emirates like Sharjah, Ajman etc.

Competitive Landscape

Tahseel, First Solution Management Service are the market leaders in UAE Debt Collection Market; the market is highly fragmented consisting of many players. Within the debt collection agencies, there are multiple players with similar share of the market leading to intense competition among these agencies in terms of meeting their targets and collecting debts in order to perform better than the other.

Future Outlook

Rise in digital collection techniques and increasing use of AI and ML for recovery predictions are expected to contribute to the market growth over the forecast period.

Increasing use of technology in the industry like NLP techniques, speed dialers, robotic collections, automated dashboarding and reports etc. is expected to drive the market in the future. Also, the increasing tendency of companies to focus on maintaining proper documentation and meeting regulatory compliance will further lead to growth. The growth is expected is to settle down in the future leading to consolidation of market.