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Central Bank of the UAE announces new short-term credit regulations
The UAE has issued new regulations for firms offering buy-now-pay-later or similar credit deals in the country.
Acknowledging the global shifts in consumer financial trends and the increasing demand for “buy-now, pay-later” and similar credit products and services, the Central Bank of the UAE has announced the issuance of the newly amended Finance Companies Regulation.
Under the new framework, the provision of short-term credit can be carried out by entities operating as agents of licenced banks or finance companies, following approval by the Central Bank.
Entities can also carry out this activity upon being licenced by the Central Bank as Restricted Licence Finance Companies.
Unlicenced entities which carry on any form of short-term credit activity and intend to continue to carry on these activities, must either apply to the Central Bank to be licenced as a Restricted Licence Finance Companies; or partner with a licenced Finance Company or a Bank.
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