In plain words

The Central Bank of the UAE, or CBUAE, does two jobs that the UK splits between several bodies. It is the central bank behind the dirham, and it is the regulator that decides who may hold and move people’s money in mainland UAE. 1

Think of it as the gatekeeper and the road builder at once. As gatekeeper, it grants licences to banks, finance companies, exchange houses, insurers, payment firms and wallet issuers, and checks that they keep following the rules. As road builder, it owns the payment systems that money travels on between banks, from large interbank settlements to instant transfers by phone number.

For a fintech founder, the CBUAE matters because almost any product that serves ordinary UAE residents in dirhams touches one of its rulebooks. Its licensing is activity-based: it does not start with a licence name, it starts with what your product actually does with money. 2

How it works

How a fintech gets to market under the CBUAE

The licence comes from the product, not the other way round.

  1. 1

    Map what the product does

    Does it hold balances, issue cards, acquire merchants, send transfers, share data or use payment tokens? Each activity points to a different rulebook.

  2. 2

    Choose a route

    Partner with an institution the CBUAE already licenses, or apply for your own licence for the activities you need.

  3. 3

    Apply and prepare

    Capital, governance, people, AML controls, technology and outsourcing plans, reviewed by the CBUAE before approval.

  4. 4

    Live under supervision

    Regular reporting, inspections and notice of material changes for as long as you hold the licence.

What the CBUAE licenses for fintechs

These are the frameworks founders meet most often. Each sits in the CBUAE Rulebook, where the full text and any updates are published. 2

If your product...The framework to read first
Issues payment accounts or cards, acquires merchants, aggregates payments or sends transfersRetail Payment Services and Card Schemes Regulation
Lets customers keep a balance and spend it laterStored Value Facilities Regulation (SVF)
Shares account data or starts payments with the customer’s consentOpen finance rules
Uses dirham-backed or foreign stablecoins for paymentsPayment Token Services rules (payment tokens)
Takes deposits and lendsA full banking licence

Many products touch more than one row. A wallet that also issues a card and sends money abroad needs each part mapped. Our overview of UAE payment licences walks through them in more detail.

The payment systems it runs

The CBUAE is also the owner of the rails your product will use, directly or through a partner bank. Some it operates itself, others through its subsidiary Al Etihad Payments, set up in 2023 to run national payment schemes. 3

01

UAEFTS

The UAE Funds Transfer System, where banks settle dirham payments with each other.

02

Aani

The instant payment platform for 24/7 transfers by mobile number, run by Al Etihad Payments.

03

Jaywan

The UAE’s own domestic card scheme, also run by Al Etihad Payments.

04

UAEDDS and WPS

National systems for direct debits and for the Wage Protection System that private employers use to pay salaries.

Direct access to these systems is usually reserved for licensed institutions. Most early-stage fintechs reach them through a partner bank or payment firm.

CBUAE, free zones and the UK

The UAE has more than one financial regulator, and the right one depends on where your company is set up and who your customers are.

RegulatorWhere it appliesWhat fintechs go to it for
CBUAEMainland UAEBanking, payments, stored value, open finance, payment tokens
DFSADIFC free zone in DubaiFinancial services inside the DIFC, under its own rulebook
FSRAADGM free zone in Abu DhabiFinancial services inside ADGM, under its own rulebook
VARADubai, outside the DIFCVirtual asset (crypto) activities

For comparison, in the UK the central bank and the conduct regulator are separate: the Bank of England and its PRA look after the safety of banks, while the FCA authorises EMIs and payment institutions. In the UAE, the CBUAE covers both roles for mainland payment firms. Saudi Arabia is closer to the UAE model: SAMA is both the central bank and the payments regulator.

Example: a UK remittance app looks at the UAE

Priya runs a UK remittance app with an EMI licence. Many of her users have family in the UAE, and she wants to offer a UAE version.

  1. The assumption. Her team expects to “passport” the UK licence or find a UAE EMI. Neither exists in that form.
  2. The mapping. Her advisers split the product into parts: an account that holds dirhams, outbound cross-border transfers, and a card. Each points to a different CBUAE rulebook.
  3. The route. She launches through a CBUAE-licensed partner that holds the regulated activities, while her company runs the app, onboarding and customer support.
  4. The plan. She builds the product so that limits, KYC rules and reports can be set per country. When UAE volumes justify it, she can apply for her own licence without rebuilding.

We cover the trade-offs in entering the UAE: partner first or licence first.

Common misconceptions

“The CBUAE regulates everything in the UAE.”

It regulates mainland UAE. The DIFC and ADGM have their own financial regulators, and Dubai has a separate regulator for virtual assets.

“There is one UAE payment licence.”

There are several frameworks, and the one you need depends on what the product does. A wallet, a gateway and a data-sharing app can each sit under different rules.

“A UK or EU licence lets you operate in the UAE.”

There is no passporting into the UAE. A foreign licence helps your credibility, but you still need a CBUAE route for mainland customers.

FAQ

What does the Central Bank of the UAE regulate?

The CBUAE licenses and supervises banks, finance companies, exchange houses, insurers, payment service providers and stored value (wallet) issuers in mainland UAE. It also sets monetary policy for the dirham and oversees the country's payment systems.

Which CBUAE licence does a fintech need?

It depends on what the product does. Payment accounts, cards, acquiring and transfers usually fall under the Retail Payment Services and Card Schemes Regulation, wallets that hold balances under the Stored Value Facilities Regulation, and data sharing or payment initiation under the Open Finance rules. Stablecoin-style payment tokens have their own regulation.

Is the CBUAE the same as the DFSA?

No. The CBUAE regulates mainland UAE. The DFSA regulates the Dubai International Financial Centre free zone, and the FSRA regulates Abu Dhabi Global Market. Each has its own licences and rulebook.

Where can I read the CBUAE's regulations?

The CBUAE publishes its regulations, standards and guidance in an online rulebook at rulebook.centralbank.ae. It is the best starting point before speaking to lawyers or the regulator.

Can a foreign fintech serve UAE customers without a CBUAE licence?

Usually not directly, if it is offering regulated payment or stored value services to people in mainland UAE. Many foreign fintechs start by partnering with a CBUAE-licensed bank or payment firm and apply for their own licence later.

Does the CBUAE run payment systems?

Yes. It operates the UAE's core interbank systems, such as the UAEFTS settlement system, and its subsidiary Al Etihad Payments runs national schemes including the Aani instant payment platform and the Jaywan card scheme.

Related terms

SVFDFSAFSRAVARAAaniUAEFTSAl Etihad PaymentsJaywanPayment tokenOpen finance

Sources

  1. 1 CB

    Central Bank of the UAE Central Bank of the UAE

    https://www.centralbank.ae/en/
  2. 2 CB

    Central Bank of the UAE CBUAE Rulebook

    https://rulebook.centralbank.ae/en
  3. 3 AE

    Al Etihad Payments About Al Etihad Payments

    https://aep.ae/en/about-us/