UAE Central Bank to implement new SME banking protections

The Central Bank of the UAE is introducing new Small to Medium Sized Enterprises (SME) Customer Protection Regulations, set to take effect on September 13, 2026. These rules aim to strengthen protections for small businesses when dealing with licensed banks and finance companies, including those operating under Islamic Sharia principles.

Under the new mandate, financial institutions must conduct thorough assessments of a customer’s ability to meet credit obligations before approving financing. This includes reviewing credit records and obtaining information from Credit Information Agencies to prevent irresponsible lending. Additionally, lenders are prohibited from granting or extending credit without a formal written request from the customer.

The regulations also require clearer disclosure regarding fees, interest rates, and financing terms, while establishing standards for sales practices, complaint handling, and support for businesses facing financial difficulties.