Finance Companies

The Central Bank's Board of Directors Resolution No. 58/3/96 dated 14/04/1996 and Resolution No. 165/06/2004 dated 06/12/2004 regulate the business of finance companies (conventional) and finance companies which conduct their business per Islamic Sharia'a Principles respectively. Finance companies undertake one or more of the following major financing activities.:

  1. Extend advances and/or personal loans for personal various consumption purposes.
  2. Financing trade and business, opening credit and issuing guarantees in favor of customers.
  3. Subscribing to the capital of projects and/or issues of stocks, bonds and/or certificates of deposit.

However, contribution of the financing company to the capital of projects, issues of stocks and/or bonds, or certificates of deposit should not exceed 7% of its own capital.

The paid-up capital of a finance company should not be less than dirham thirty five million and national shareholding should not be less than 60% of total paid-up capital, without prejudice to provisions of Federal Law No. 8 of 1984 and any subsequent amendments thereto.

List of Finance Companies operating in the UAE (pdf document)