Letters of Credit in UAE — Sight & Usance LCs for Importers
Open import and export Letters of Credit through leading UAE banks under UCP 600 — sight or usance, conventional or Islamic, structured to your commodity and Incoterms.
Top Letter of Credit offers right now in UAE
Compare the latest business loan offers from leading UAE banks, tailored to your business.
A Letter of Credit (LC) is a bank undertaking to pay an exporter once compliant shipping documents are presented, replacing buyer-seller trust with bank creditworthiness — the backbone of UAE import trade. A sight LC pays the seller immediately on document presentation, while a usance (deferred) LC pays 30, 60, or 90 days later, effectively financing the importer’s working capital. UAE banks issue LCs under the ICC’s UCP 600 framework, and the document set the bank inspects is shaped by the agreed Incoterm (FOB, CIF, EXW). Eligibility requires an active UAE trade licence with the relevant trade codes, an approved trade limit or cash margin, and a clean Al Etihad Credit Bureau (AECB) record. Banks price an issuance commission plus a per-quarter usance charge. FinanceMarket.ae matches you to the UAE banks with the strongest correspondent network in your supplier’s country and the keenest LC commissions.
- Sight LCs — pay on compliant document presentation
- Usance LCs — 30/60/90-day deferred payment
- Issued under UCP 600 rules
- Conventional or Islamic (Murabaha) LCs
Documents Required to Apply for a Business Loan in Dubai, the UAE
Pick your profile below — the checklist differs by applicant type.
- Valid Trade Licence (Mainland / DED)
- Memorandum of Association (MOA) & Share Certificates
- Chamber of Commerce registration certificate
- Office tenancy contract / Ejari
- Company profile and website
- 6–12 months company bank statements
- Audited financial statements for the last 2 years
- VAT certificate and VAT returns for the last 4 quarters
- Sample invoices and purchase orders (POs)
- Emirates ID & passport copies of all owners / partners
- UAE residence visa copies of owners / partners
- AECB credit report
- Post-dated cheques / collateral where applicable
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Frequently Asked Questions
Answers to the most common questions about business finance in the UAE.
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