Liabilities are split into current (due within 12 months) and non-current (due beyond 12 months). Common current liabilities in UAE businesses: accounts payable, VAT payable, payroll due, and short-term loan repayments. Non-current liabilities include long-term bank loans and lease obligations under IFRS 16. For UAE bank lending, the debt-to-equity ratio — total liabilities divided by equity — is closely scrutinised. A ratio above 2:1 typically signals over-leverage and can block new credit.
See also: Balance Sheet, Equity, Accounts Payable (AP)
