Local firms owe millions of euros to overseas suppliers

The international export credit insurer Coface says it is chasing at least €60 million (Dh299.7m) owed to overseas suppliers by companies based in the UAE, as orders and projects are cancelled because of the economic slowdown.

Coface, which insures exporters against non-payment and collects debts, has seen a rapid increase in claims because of the distressed property sector.

“There are easily half a dozen big incidences here where foreign suppliers are owed around €10m each,” said Jerome Cazes, the chief executive officer of Coface. “This compares with absolutely nothing at this time in 2008.”