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 (CBUAE) 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 CBUAE. Entities can also carry out this activity upon being licenced by CBUAE 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 CBUAE to be licenced as a Restricted Licence Finance Companies; or partner with a licenced Finance Company or a Bank.
News Source: Emirates News Agency
