All about the Central Bank of the UAE

• History
• Financial Institutions
• Services
• Laws and Regulations
• Contact Info

Established in 1980, the Central Bank of the UAE is the leading financial regulatory body of the country that monitors financial processes in the country and ensures the sustainable growth of the UAE economy. Read on to find out more about the Central Bank’s history, services, functions and more.

History of the Central Bank of the UAE

Prior to the establishment of the Central Bank of the UAE, the Currency Board was the central financial regulatory authority of the country. However, the board did not enjoy the same powers as the Central Bank. It was only responsible for managing the currency and taking into account the gold and foreign exchange reserves.

In 1974, the Research and Statistics Centre came into being followed by the establishment of the Banking Supervision Department in 1978. Finally, on 10 December 1980, the Union Law No.10 was passed, which led to the foundation of the Central Bank of the UAE.

From 1980 onwards, the banking system of the UAE saw major developments. In 1988, a separate Anti-Money Laundering and Suspicious Case Unit (AMLSCU) was also established and developed further under the supervision of H.E. Sultan Bin Nasser Al Suwaidi, the governor appointed for the Central Bank in 1991.

Further to this in 2000, the National Anti-Money Laundering Committee was formed and a few years later the Financial Stability Unit was established in 2009. The Regulatory Development Division was then established in 2012 along with the first Financial Stability Report by the Central Bank of the UAE.

Further regulations were added in 2014, when H.E Mubarak Rashed Al Mansoori was appointed as the Governor and in 2018, when the State Bank issued the Decretal Federal Law No #14 to monitor the activities of all financial bodies in the UAE.

Financial Institutions Regulated by UAE Central Bank

There are various institutions licensed by the Central Bank including national banks, foreign banks, finance companies, representative offices, investment companies, financial brokers and money exchanges.

Take a look at the complete list of financial institutions regulated by the Central Bank of the UAE

Commercial Banks

There are two main types of banks in the UAE: national and foreign banks. National banks are public shareholders that work as per the provisions stated in the Union Law No.10 of 1980. Foreign banks have Central Bank’s licence to carry out their operations in the country, in accordance with the legal guidelines defined by the Central Bank.

National Banks in the UAE

Here is a list of top national banks in the UAE:

Foreign Banks in the UAE

Some of the top foreign banks in the UAE are mentioned here:

Investment Banks

Authorised by the Central Bank of the UAE, investment banks act as an intermediary between security issuers and investors so that they can raise capital.

The list of licenced investment banks in the UAE include:

• Emirates Investment Bank (PJSC) headquartered in Abu Dhabi with branches in other emirates
• HSBC Financial Services Ltd. headquartered in Abu Dhabi with branches in other emirates

Financial Investment Companies

Regulated by the Central Bank of the UAE, Financial Investment companies establish investment trust funds, participate in the company’s syndicated loans and promote stocks of shareholding companies. The top financial investment companies in the UAE include:

• Oman & Emirates Investment Holding
• National Bonds Corporation
• Daman Investment
• Abu Dhabi Investment House
• Gulf Capital

Money exchanges

There are many exchange centres in Dubai and other parts of the UAE that cater largely to tourists and expats.

The list of major money exchanges operating in the UAE include:

• UAE Exchange Centre LLC
• Orient Exchange Co LLC
• Al Fardan Exchange
• Al Ansari Exchange LLC
• Al Razouki Exchange
• Smart Exchange
• Union Exchange
• Al Ahalia Money Exchange Bureau
• Dubai Exchange Centre
• Baniyas Exchange
• Al Jazira Exchange

Finance Companies

Authorised by the Central Bank of the UAE, there are many finance companies in the UAE offering a variety of services including:

• Personal loans
• Financial support to trades and businesses

The list of finance companies operating in the UAE include:

• Abu Dhabi Commercial Islamic Finance
• Abu Dhabi Finance
• Al Futtaim Finance Company
• Emirates Money Consumer Finance
• Mashreq Al Islami Finance
• Mawarid Finance
• Reem Finance

Financial and Monetary Intermediaries

According to the Central Bank’s Board of Directors Resolution passed in 1995, there is a wide range of financial and monetary intermediaries that regulate the sale and purchase of currencies, domestic and foreign stock bonds and commodities.

The list of intermediaries include:

• Alfa Financial LLC
• Royal Index LLC
• Century Financial Brokers LLC
• Orient Financial Brokers
• Eastern Trust, LLC
• Al Brooge Forex Broker
• Sharjah Islamic Financial Services
• Abu Dhabi Financial Services Co.LLC

Representative Offices – Foreign Banks

There are various representative offices of foreign banks in Sharjah and Ajman. According to the Central Bank’s Board of Directors Resolution in 1996, foreign banks can:

• Contact concerned agencies on behalf of the foreign financial institution
• Promote services in the local market
• Provide data to the head office about the economic developments of the country
• Offer banking, financial and investment consultation services
• Provide data support to the local agency that intends to establish a business in the home country of the licenced institute

Some of the popular foreign banks with representative offices in the UAE include:

• Philippine National Bank
• Royal Bank of Canada
• Bank of Singapore Ltd (Previously ING Asia Private Bank Limited)
• State Street Bank and Trust Company
• Cleanstream Banking S.A
• Wells Fargo Bank National Association
• Royal Bank of Canada
• Bank of Bahrain and Kuwait (B.S.C)
• Bank Muscat (S.A.O.G)
• HSBC Bank International Ltd.
• ICICI Bank Limited
• Andhra Bank
• Punjab National Bank
• National Bank of Egypt
• BNP Paribas

Central Bank of the UAE Services

The Central Bank of the UAE primarily manages banking operations, ensures consumer protection, protects the financial system, promotes financial stability and reinforces new policies. Here is a list of major services offered by the Central Bank:

Issuance of Certificate of Deposit (CDs)

The Central Bank of the UAE facilitates both conventional and Islamic banking systems.

Conventional CDs – CDs Auction System

In 2007, the Central Bank of the UAE implemented a New Expanded Central Bank CD Issuance System to facilitate conventional banks. Banks can now buy certificates of deposit for their preferred interest rate, tenure and amount for auction. As per the new system, CDs would be issued in AED, USD and EURO. Their maturity date can range from one week to five years.

Islamic CDs – The Collateralized Murabah Facility (CMF)

The UAE Central Bank also offers immense support to the Islamic banking system. It has launched Collateralized Murabah Facility (CMF) through which CDs can be issued on the basis of Murabah, an Islamic financial structure. The motive of this initiative is to absorb excess liquidity in Islamic banks.

Funding

The Central Bank of the UAE (CBUAE) enables banks to access funds in dirham (AED) as well as in dollars ($) so they can have a more stable economic footing.

Dirham Funding

Islamic banks can now receive CMF funds from the Central Bank, provided they deliver securities to the Triparty Custody Account of the CBUAE.

Once they meet this and other specific conditions stipulated by the Central Bank, they will get funds through UAE Funds Transfer System (UAEFTS) in their current account.

Dollar Funding

Central Bank allows Islamic and conventional banks to access dollar funds to meet their foreign currency requirements. Banks can avail of these funds for three different tenures: one week, one month and three months. However, banks which use this facility will not be liable to sell dollars during the period of funding.

Handling Customer Complaints

The UAE Central Bank offers an online complaint facility. Both individuals and financial institutions can fill a form, entering their credentials and complaint details. The bank then caters to them with a timely response.

In addition to these services, CBUAE also offers a wide range of other facilities such as:

• Validating certificates issued by banks
• Storing valuables for local and international government entities
• Issuing and selling commemorative coins
• Offering effective systems such as UAE Electronic SWITCH, Wage Protection System (WPS), UAE Funds Transfer System (UAEFTS)
• Providing training courses to the concerned authorities
• Re-purchasing Certificates of Deposit
• Exchanging information with counter financial intelligence units
• Providing foreign currency exchange rates

Laws and Regulations

The Central Bank of the UAE passes regulations pertaining to financial bodies that fall within the purview of its authority.

Central Bank designs regulations for:

• Governance
• Capital
• Liquidity
• Risk Management
• Controls and Compliance
• Credit risk
• Anti-money laundering (AML)

Central Bank of the UAE Contact Info

The Central Bank of the UAE has branches across the entire UAE; including Dubai, Abu Dhabi, Al Ain, Fujairah and Sharjah. However, the main branch is in Abu Dhabi.

• Central Bank of UAE Location: Next to King Abdullah Bin Abdulaziz Al Saud St, Abu Dhabi
• Central Bank of UAE Contact: +971-800-22823

And that’s all we have for you in our guide to the Central Bank of the UAE. Financial institutions all over the country abide by the legal stipulations of the Central Bank and provide well-regulated services to clients. CBUAE issued seven commemorative silver coins to celebrate the 50th UAE National Day.

Banks in Dubai are no exception to this. Similarly, the banks in Abu Dhabi are also regulated by this central authority.

There are also many banks in Sharjah that ensure effective, timely and speedy financial services for all the residents.