The Central Bank of the UAE (CBUAE) has introduced an amended Finance Companies Regulation in response to evolving global consumer financial trends, particularly the rising demand for “Buy-Now, Pay-Later” and similar credit services.
The updated framework allows entities to provide short-term credit services as agents of licensed Banks or Finance Companies after obtaining CBUAE approval. Alternatively, entities can engage in this activity by securing licensing as Restricted License Finance Companies from CBUAE.
Unlicensed entities currently involved in any short-term credit activity must either seek to license as Restricted License Finance Companies from CBUAE or collaborate with licensed Finance Companies or Banks if they intend to continue these operations.
