This page covers the types of banks, finance companies and intermediaries licensed to operate in the UAE.
It regulates the following:
The CBUAE Rulebook is a resource of the regulations, standards and guidelines issued by Central Bank of the UAE. It aims to provide easy access to compliance material and help individuals and businesses in the financial industry to stay aware of the same.
Features and benefits
The Rulebook has several features and benefits. It:
The recently launched Rulebook on the #CentralBankUAE website offers further accessibility to regulatory publications aimed at enhancing transparency and communication with licensed financial institutions, consumers, partners, and service users. pic.twitter.com/6ZOBVVDoCb
— Central Bank of the UAE (@centralbankuae) September 13, 2023
The Central Bank of the UAE provides licences for conventional banks in order to carry out the following services:
The UAE offers Islamic banking services. It is governed by Shari'a law and Federal Law No. 6 of 1985 Regarding Islamic Banks, Financial Institutions and Investment Companies. According to Article 3 of the law, Islamic banks have the right to carry on all or part of banking, commercial, financial and investment services and operations. They have the right to engage in all types of services and operations practised by banks and referred to in Federal Law No. 10 of 1980.
Central Bank’s licence ensures that this sector provides banking services that are fully compliant with the provisions of Islamic Shari’a. Islamic banking services are divided as follows:
The Islamic banking sector has become an integral part of the UAE’s financial industry, accounting for 23 per cent (equivalent to AED 845 billion) of total banking assets in 2022. For more information read the UAE Islamic Finance Report 2023 (PDF, 1 MB).
Citizens can open bank accounts in any of the conventional and Islamic banks operating in the UAE. They must provide:
As for the residents in the UAE, they must submit:
Citizens and residents of the country can also open joint accounts with one another, and the procedures in this regard vary from bank to bank.
IBAN
From 2012, the use of International Bank Account Number (IBAN) is mandatory for all electronic payments and receipts within and outside the UAE (except for making payments through a credit card).
IBAN complies with the ISO 13616 standard and is unique to each account number.
So, you will have a distinct IBAN for each of the accounts you hold in the same or different banks. Banks are required to inform their account holders of their unique IBAN.
Related links:
Exchanging foreign currency and remitting money is common in the UAE. Central Bank issued new Resolution No. 123/7/1992, dated 29 November 1992 for moneychangers.
As per the resolution, only those institutions and companies that are established as per provisions of the Commercial Companies' Law are licensed to change money as business. The company should have a national shareholding of a minimum of 60 per cent of the total paid-up capital. The minimum capital was set at AED one or two million depending on the scope of activities the company wishes to undertake.
In case a natural person wants to conduct money-changing business, he must be an Emirati citizen of not less than 21 years of age.
Expatriate residents can send money to their home countries through one of moneychangers in the UAE or through their banks. When remitting money through moneychangers, they need to provide a copy of their Emirates ID and proof of income in some cases.
Exchanges businesses include the following:
The Central Bank's Board of Directors Resolution No. 58/3/96 dated 14 April 1996 and Resolution No. 165/06/2004 dated 6 December 2004 regulate the business of conventional and Islamic finance companies. Finance companies undertake one or more of the following major financing activities:
However, contribution of the financing company to the capital of projects, issues of stocks and/or bonds, or certificates of deposit should not exceed 7 per cent of its own capital. The paid-up capital of a finance company should not be less than AED 35 million and national shareholding should not be less than 60 per cent of total paid-up capital, without prejudice to provisions of Federal Law No. 8 of 1984 and any subsequent amendments thereto.
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