Unified UAE Legislation Database

13 UAE Central Bank

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

A brief overview of legislation from realLaw AI 

Key regulation areas

The financial system of the United Arab Emirates (UAE) includes the following key components:

 

1. The Central Bank of the UAE is the main regulatory body. It controls the banking sector, financial stability, the issuance of the national currency, as well as the UAE's monetary policy. 

 

The Central Bank of the UAE sets the key interest rate, taking into account the country’s economic situation, inflationary processes, and the dirham’s exchange rate, which has been pegged to the US dollar since 1997. The current exchange rates are available on the official website of the Central Bank of the UAE: https://www.centralbank.ae/en/forex-eibor/exchange-rates/ and interest rates can be found at the following link: https://www.centralbank.ae/en/forex-eibor/eibor-rates/

 

2. The banking sector includes commercial banks,  Islamic banks, a branch of foreign banks and an investment banks. A notable aspect is that branches of foreign banks are subject to a 20% tax on profits. This regional tax applies to profits earned by foreign bank branches in certain emirates: Dubai (Dubai Law No. 1 of 2024), Sharjah...