The United Arab Emirates’ Central Bank or simply CBUAE was founded in 1980, with Dubai and Abu Dhabi both contributing half of their earnings in the organization.

1. CENTRAL BANK OF UAE
https://hlbhamt.com/

2. The United Arab Emirates’ Central Bank or simply CBUAE was founded in 1980, with
Dubai and Abu Dhabi both contributing half of their earnings in the organization. The
UAE dirham, the emirates’ national currency, is also issued by the bank. The Central
Bank of the United Arab Emirates is the government entity in command of the UAE’s
monetary system, fiscal policy, and banking supervision. It also enhances consumer
rights via efficient oversight, in accordance with internationally accepted quality
standards.

3. KEY OBJECTIVES
The UAE Central Bank aspires to fulfill the following objectives:
 Preserve the national currency’s soundness within the monetary system’s structure.
 Advancement and preservation of the financial system’s integrity in the nation.
 Guarantee that the Central Bank’s foreign reserves are well-managed.
The Central Bank of the United Arab Emirates (CBUAE) is in charge of maintaining
financial stability as well as economic growth in the UAE. CBUAE does this through
efficient supervision, cautious reserve allocation, and the creation of a strong financial
network and rules that follow worldwide best practices. The Central Bank of the United
Arab Emirates has the authority to issue and manage monetary system, to guarantee stable
exchange rates, prudent resource control, development of financial facilities and regulations,
handle the UAE’s credit policy, and to improve and supervise the UAE financial system.

4. In the United Arab Emirates, there are two types of banks:
 Locally Incorporated Banks are public shareholding corporations that have been
licensed under Union Law No. (10) of 1980.
 Foreign bank branches that have secured Central Bank licenses to operate in the
nation in accordance with the terms of the stated Law.
The UAE has four separate regulators that are responsible for the authorisation and
supervision of banks, insurers, and other financial institutions. The Central Bank of
the United Arab Emirates (CB), the Insurance Authority (IA), the Securities and
Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA), and the
Abu-Dhabi Global Market (ADGM) are regulators among them. The following is the
division of responsibility between the CB, IA, SCA, and DFSA:

5. (a) On a federal level, the CB, IA, and SCA oversee and supervise all banks, insurers,
insurance brokers, and securities dealers.
(b) The Dubai Financial Services Authority (DFSA) is the financial regulator and
supervisor for all banks, investment firms, securities traders, and insurers operating
within the Dubai International Financial Centre (DIFC), a financial free zone in the
Emirate of Dubai governed by its own rules and regulations largely based on common
law principles, as opposed to civil law on the UAE federal level. Investment
businesses, asset managers, hedge funds, brokers, financial advisers, and insurance
intermediaries are all regulated by the DFSA.

6. In the United Arab Emirates, the primary sources of regulatory laws are:
Federal Legislation No. 10 of 1980 covering the Central Bank, the Monetary System,
and Banking Organization is the most important federal law in the UAE governing
banking and financial services. The Insurance Authority and its activities are
controlled by Federal Law No. 6 of 2007, which established the Insurance Authority
and organised its operations. The Emirates Securities and Commodities Authority and
Market are controlled by Federal Law No. 4 for the year 2000. The three regulators
have released a slew of rules that apply to the financial firms that come under their
purview.

7. There are currently no restrictions on international banks engaging with clients in the UAE.
The sole constraint would be the inability to hold security, and such institutions would have
to rely on a local security agent who is a bank or financial institution regulated by the
Central Bank.
Insurers and insurance brokers, who must be regulated by the Insurance Authority, face
additional constraints. Foreign insurance companies are prohibited from insuring assets in
the UAE.
In the UAE, there are similar prohibitions on the advertising and marketing of foreign
money. Unless it is on a reverse solicitation basis if such foreign funds are targeted to
Sovereign Wealth Funds, this must be done through a local agent licensed by the Central
Bank.

8. SERVICES FOR ONLINE LICENSING
The Central Bank of the UAE has moved all financial and banking services
businesses’ licensing processes to a digital medium, as part of the bank’s process of
improving its operations. Banks and financial institutions interested in registering
their activities with CBUAE can now complete the following steps to get a license.
1. For existing licensed entities
The Licensing Automation Portal can be accessed through several online channels.

9. 2. For new applicants/financial institutions that are not yet licensed
I. The CBUAE should first approve the licensing of financial and banking activity
in the United Arab Emirates. By submitting an application, the applicant can
begin the licensing procedure.
II. The steps involved in submitting a new license application
The following papers must be attached by new applicants.
 Business model and strategy proposed
 A brief overview of the business initiatives and activities

10. For the review process, new applicants must meet with CBUAE for at least one pre-
requisite meeting.
III. Following the first phase criteria
 After a successful evaluation, CBUAE grants ‘in-principle approval’ to new
applicants.
 Applicants have one year from the date of CBUAE’s ‘in-principle approval’ to meet
the conditions mentioned in the letter.

11. IV. Criteria for the second phase and supplementary information
 An ‘in-principle approval’ cannot be regarded as the application’s final confirmation.
 Financial institutions cannot engage in activities that are regulated by CBUAE
unless they have secured a license for the application.
 Even after issuing an ‘in-principle approval’, CBUAE is not obligated to award the
license if the application does not fulfill the relevant parameters.
Finally, CBUAE will award the necessary license when the applicant has met the
requirements, together with any terms or criteria that the licensee must meet.

12. FREQUENTLY ASKED QUESTIONS –
REGULATED LICENSE
How to set up an insurance advisory firm in UAE?
To start an insurance business in Dubai, you must first register with the Dubai
Economic Department and then receive a license from the Insurance Authority. The
type of services supplied determines which operating license is awarded.
How to setup a regulated license in ADGM?
If you would like to set up a regulated ADGM license, it is best to start by consulting
with the ADGM licensing and regulatory services. They will be able to tell you whether
or not your product requires a license and how to go about getting one. Before they can
help you, though, they will need an accurate description of your product.

13. CONTACT US
HLB HAMT
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates.
Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com