Announcements

Your guide to the UAE’s new banking law, and how it changes your relationship with banks

Published

3 months ago

October 10, 2025

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UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan on Friday issued a sweeping new federal decree that fundamentally changes how banks and financial institutions operate in the UAE, with major implications for everyday customers.

Federal Decree Law No. (6) of 2025 strengthens the Central Bank’s oversight powers and introduces critical protections designed to safeguard consumers, expand financial access, and speed up complaint resolution.

Here’s what actually changes for you.

Your complaints get resolved faster

What’s new: All banking and insurance complaints now go through one unified system managed by Sanadak, an independent entity created specifically to handle customer disputes.

What this means for you:

No more confusion about where to file complaints
Faster resolution process with a single point of contact
Decisions are legally enforceable against banks and insurers

The game-changer: New specialised judicial committees will handle financial disputes, with final, binding decisions for amounts up to Dh100,000. Banks and insurance companies must comply, no appeals, no delays.

Bottom line: If you have a problem with your bank or insurer, getting it resolved just became significantly easier and faster.

Loans must match your actual income

What’s reinforced: Banks are now legally required to align credit facilities with your actual income, protecting you from taking on debt you can’t afford.

What this means for you:

Stricter affordability checks before loan approval
Protection from irresponsible lending practices
Banks can’t push you into loans beyond your repayment capacity

Why it matters: This prevents the debt spiral that happens when people are given credit they can’t realistically repay based on their salary.

Everyone gets access to banking services

What’s mandated: Licensed financial institutions must provide banking and financial services to all community members, not just high-income earners or certain demographics.

What this means for you:

No arbitrary account rejections based on income level
Access to digital banking innovations for everyone
Financial inclusion as a legal requirement, not a courtesy

The push: This aligns with the UAE’s digital transformation efforts, ensuring modern financial services reach all residents.

Your money is safer if a bank fails

What’s new: The Central Bank now has sweeping “early intervention” powers if a financial institution shows signs of trouble.

What this means for you:

Proactive measures kick in before a bank collapses
Your deposits and services are protected through managed interventions
The Central Bank can force mergers, change management, or orderly liquidation

How it works: If your bank is struggling, the Central Bank can:

Force it to implement recovery plans
Require additional capital reserves
Change management or business strategy
Arrange mergers or acquisitions
Conduct organised liquidation (protecting customer funds)

Bottom line: You’re less likely to wake up to frozen accounts or lost deposits because problems get addressed early.

Banks face massive fines for violations

What’s changed: Administrative fines have been dramatically increased, up to 10 times the value of the violation or unjust profit.

What this means for you:

Banks have a stronger incentive to follow rules
Real financial consequences for misconduct
More transparent market (violations published on the Central Bank website)

The enforcement: Fines are automatically debited from the violating institution’s accounts, no waiting for payment.

Better financial education is coming

What’s planned: National awareness campaigns about financial services, launched in collaboration between the Central Bank, the financial sector, and community organisations.

What this means for you:

Better understanding of banking products and rights
More informed financial decisions
Community-wide financial literacy improvements

What stays the same

The decree maintains the Central Bank’s core responsibilities:

Keeping the national currency stable
Managing foreign reserves
Overseeing the financial system
Setting monetary policy

But the enforcement mechanisms and customer protections are now significantly stronger.

When does this take effect?

The Federal Decree Law is now in effect, though implementation of specific mechanisms (like the Sanadak complaints system and specialised judicial committees) will roll out according to Central Bank timelines.

What you should do

Know your rights: You now have stronger protections – use them
Keep documentation: If disputes arise, you have clear resolution paths
Check loan terms: Banks must justify lending against your income
File complaints properly: Use the new unified Sanadak system
Stay informed: Watch for Central Bank announcements about implementation

The bottom line

This isn’t just regulatory reshuffling; it’s a fundamental strengthening of your rights as a banking customer in the UAE. Complaints get resolved faster, loans must be affordable, access is guaranteed, and your money is better protected if institutions fail.

The message is clear: customer protection just became law, not a courtesy.

Key Takeaways:

Unified complaints system (Sanadak) handles all banking/insurance disputes
Fast-track resolution for disputes up to Dh100,000
Mandatory income-based lending protects from over-borrowing
Universal financial access is required by law
Early intervention powers protect deposits before banks fail
10x penalty multiplier for institutional violations

Michael Gomes

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Announcements

Indian real estate group BCD Global enters Middle East, sets up Dubai headquarters

Published

1 week ago

January 8, 2026

Michael Gomes

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BCD Global, the international expansion platform of Indian-founded real estate developer BCD Group, has entered the Middle East, naming Dubai as its regional headquarters as it pursues its next phase of global growth.

The move marks the first Middle East expansion for the 70-year-old group, which has delivered more than 155 million square feet of real estate across over 300 residential, mixed-use and large-scale developments in seven countries.

BCD Global said it chose Dubai due to the emirate’s economic stability, access to global capital, regulatory clarity and long-term urban planning framework.

“Dubai represents the convergence of global capital, governance and long-term urban vision,” Amit Puri, CEO of BCD Global, said in a statement.

Founded in India in 1952, BCD Group has developed projects across infrastructure-led asset classes, including healthcare, senior living, hospitality, co-living and urban infrastructure. BCD Global will spearhead the group’s international expansion from the UAE, with a focus on institutional governance and long-term asset creation.

The expansion follows a strategic restructuring under chairman Angad Singh Bedi, who has overseen the group’s transition to a zero-debt, vertically integrated operating model.

“The Middle East is one of the defining growth corridors of the next decade, and Dubai stands at its centre,” Bedi said, adding that the group’s entry into the region was intended as a long-term expansion rather than a short-term market play.

BCD Global’s entry comes as the UAE’s real estate sector continues to benefit from population growth, infrastructure investment and sustained inflows of international capital. The UAE’s population is projected to reach around 11 million by 2030, supporting demand for large-scale, institutional-quality developments.

From Dubai, BCD Global will oversee its Middle East and Africa operations, with the wider Gulf region, including Saudi Arabia, identified as a key growth market over time.

Announcements

UAE to crack down on businesses not complying with electronic invoicing rules

Published

1 month ago

December 8, 2025

Michael Gomes

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The UAE Ministry of Finance has introduced a Cabinet Resolution imposing administrative fines on businesses that fail to comply with the country’s Electronic Invoicing System (EIS), reinforcing the nation’s drive for digital transformation and stronger tax compliance.

The rules apply to all entities required to adopt EIS under Ministerial Decision No. (243) of 2025. Companies using the system voluntarily are exempt from penalties until compliance becomes mandatory.

Fines include:

Dh5,000 per month for failing to implement EIS or appoint an approved service provider on time.
Dh100 per electronic invoice not issued or sent on time, capped at Dh5,000 per month.
Dh100 per electronic credit note not issued or sent on time, capped at Dh5,000 per month.
Dh1,000 per day for not notifying the Federal Tax Authority of system malfunctions.
Dh1,000 per day for delays in updating approved service providers on registered data changes.

Officials stressed that the resolution underlines the UAE government’s commitment to international best practices and the development of a fully integrated digital economy.

Announcements

UAE VAT rules are changing in 2026: Here’s what businesses need to know

Published

1 month ago

December 4, 2025

Michael Gomes

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The UAE’s Ministry of Finance has announced a new set of amendments to the country’s VAT law, with the revised rules taking effect on January 1, 2026. The changes are designed to make the tax system easier to use and more aligned with international best practices.

In a statement, the Ministry said the move supports the UAE’s ongoing efforts to streamline its tax framework and improve administrative efficiency. The updates are also designed to provide businesses with greater clarity and reduce unnecessary paperwork.

Simpler filing, fewer steps

One of the biggest changes removes the requirement for businesses to issue self-invoices when using the reverse charge mechanism. Instead, companies will simply need to keep the usual documents that support their transactions, such as invoices, contracts and records, which the Federal Tax Authority (FTA) can review when checking compliance.

According to the Ministry, this adjustment “enhances administrative efficiency” and provides clear audit evidence without placing extra paperwork burdens on businesses.

Five-year window for VAT refunds

The updated law also introduces a five-year limit for claiming back refundable VAT after accounts have been reconciled. Once this period ends, businesses lose the right to submit a claim. Officials say this helps prevent long-delayed refund requests and gives taxpayers more certainty about their financial position.

Tighter rules on tax evasion

To protect the system from misuse, the FTA will now have the authority to deny input tax deductions if a transaction is found to be linked to a tax-evasion arrangement. This means businesses must ensure the supplies they receive are legitimate before claiming input VAT.

Taxpayers are expected to verify the “legitimacy and integrity” of supplies as part of these strengthened safeguards.

Supporting a competitive economy

The Ministry said the amendments will boost transparency, ensure fairness across the tax system and support better management of public revenue. The updated rules also aim to maintain the UAE’s competitive edge while supporting long-term economic sustainability.