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According to Ken Research estimates, UAE Debt Collection Marketu00a0u2013 which grew at au00a0CAGR of 11.6% in the period of 2017-2022u00a0u2013 is expected tou00a0grow at a CAGR of 12.8%u00a0in the forecasted period of 202-2027, 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.
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Rise in Digital Collection Techniques and Improvement in UAE Legal System Related to Debt Collection Will BoostUAE Debt Collection Market: Ken Research 1. Debt Collection Market in UAE expanded at a CAGR of 11.6% between 2017 and 2022 Interested to Know More about this Report, Request for a sample report The collection industry witnessed increasing growth rates right before and during the COVID-19 pandemic due to a sharp rise in NPL’s, use of technology like digital collection, speech analytics, predictive dialers etc. and rise in collection efforts by the agencies to sustain themselves in the market. The total number of cases settled by debt collection companies in UAE in 2022 stood at more than 200,000 growing at a CAGR of 11.6% from 2017. The Financing segment has the highest ticket size with non-finance being the lowest. There was a sudden increase in debt collected and cases settled in 2021 due to increased defaults in 2020 due to pandemic leading to more cases being outsourced and hence, companies improved upon their efforts to collect more debt over the next period. 2. Most of the Debt Collection Agencies and Law Firms have their presence in Abu Dhabi and Dubai. Visit this Link :- Request for custom report
The majority of the collection agencies are based out of Abu Dhabi, Dubai and Ras Al-Khaimah accounting for more than 70% of the total market. 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. Presence of free zones including DIFC in Dubai and ADGM in Abu Dhabi also acts as a incentive for companies to establish themselves in these regions due to benefits. 3. Pandemic-induced trend, a greater emphasis on NLP techniques and maintaining proper documentation are acting as key growth drivers. Collection agencies are extensively using various speech analytics tools to record and analyse customer conversations. This enables to maintain security and gain insights into client expectations. The information gathered can further be used for training of employees adapting them to different situations while negotiating and hence, improving their performance which would act as a key growth driver for debt collection companies. In addition, companies are maintaining proper documentation and proof for all debt provided by them to corporates and individuals. This makes it much easier for Debt Collection agencies to recover the debt in case of a default both amicably and legally as well through payment order method. Collection companies which provide settlement plans to debtors have start taking post-dated cheques as a proof for future payment. Changing IT policies require companies to maintain complete confidentiality of client information due to threat of data breach. All this factors will provide more growth to collection industry. Moreover, Covid-19 made the public more aware about the existence of debt collection services which motivated them to fulfil their debt obligations. Pandemic also increased the number of default accounts bringing more business for collection agencies and inducing growth.
