Ahmad Dabousi, Regional Vice President – Head of Trade Credit at ACE Gallagher.

Ask most CEOs in the region to name their greatest credit risk concern, and many will point to the same scenario: a major customer defaulting outright. It is, after all, the most visible and damaging indicator of credit risk. Yet for many businesses, liquidity pressure often begins much earlier, through delayed payments that build gradually before insolvency becomes part of the conversation.

The broader operating environment is compounding this challenge. PwC Middle East’s 2026 Economy Watch points to significant disruption across oil exports, trade flows and supply chains, prompting businesses across the region to reassess resilience and liquidity planning as a priority. Credit risk, as a result, can no longer be treated as a discrete, back-office function. It is now inseparable from geopolitical exposure, operational continuity and supply chain integrity.

“Credit risk is no longer confined to company’s back office; it has become a strategic issue,” says Ahmad Dabousi, Regional Vice President – Head of Trade Credit at ACE Gallagher. “Companies cannot afford to wait for defaults to materialize before responding. They need visibility and discipline well in advance, so they can act before a payment issue becomes business-critical.”

This exposure is particularly acute for companies with concentrated customer bases, a common feature in wholesale distribution, manufacturing, logistics and construction-related trade. In these sectors, a single delayed payment from a major buyer can cascade through the business, straining supplier relationships, increasing borrowing requirements and compressing margins.

Against this backdrop, trade credit insurance is increasingly being positioned not as a contingency measure, but as an integral component of credit governance. Beyond indemnifying losses, it supports stronger credit discipline, more rigorous buyer monitoring and better-informed decision-making, whether a business is extending credit terms, entering a new market, or reassessing its exposure to key accounts.

This shift creates a more consultative role for brokers. Their value now extends well beyond arranging cover; it lies in helping clients interpret receivables exposure, evaluate buyer concentration, navigate insurer appetite, and structure policies aligned with commercial strategy. As supply chains become more fragmented, this advisory role is becoming increasingly important to the broker-client relationship.

“This is not a question of choosing between growth and risk management,” Dabousi adds. “The strongest businesses are those able to pursue both simultaneously. With sound governance, robust market intelligence and appropriate credit protection in place, companies can grow with confidence, while safeguarding their balance sheet.”

The scale of the challenge is well documented. Gallagher’s global supply chain research found that 86% of companies experienced a supply-chain loss in the past year, yet only one in three were fully covered for the losses incurred. Rising input costs, geopolitical volatility and ongoing tariff disputes continue to compound the pressure on businesses across sectors.

These findings point to a broader truth for the industry: the protection gap is no longer confined to physical assets or business interruption. It extends into receivables, customer concentration and the cumulative financial impact of delayed payments. For CEOs, unmanaged trade credit exposure can affect cash flow, access to financing, supplier relationships and, ultimately, growth strategy.

Trade credit insurance also offers benefits beyond direct risk transfer. It can strengthen a company’s standing with lenders, improve access to financing, and reduce uncertainty around receivables. The discipline inherent in credit insurance policies frequently encourages stronger internal governance, accelerating collections and improving overall cash flow management.

Achieving this, however, requires close collaboration between CEOs, CFOs, credit teams, insurers and brokers. Sustained progress depends on open dialogue, shared data and regular review of buyer behavior, payment trends and emerging risk factors.

As the Middle East continues to navigate geopolitical uncertainty and structural shifts in global trade, conventional credit control measures are no longer sufficient. The businesses best positioned for sustainable growth will be those that identify payment risks early, embed disciplined credit governance, and work with experienced brokers to convert credit insurance from a protective measure into a genuine strategic asset.

For the insurance sector, this represents a clear opportunity: by helping businesses build stronger credit frameworks, insurers and brokers alike can support more confident commercial decision-making and greater financial resilience across an increasingly uncertain market.