UAE Banks to Introduce Stricter Debt Transfer Rules from January 2027
Proposed Regulations for Debt Transfers
Under the anticipated measures, which are being prepared by UAE banks, borrowers would be required to remain with the financial institution that provided their financing for a predetermined period. Additionally, they must pay a specified number of instalments before they become eligible to transfer their debt to another bank. The exact length of the stay and the number of instalments have not been disclosed in the preliminary outline of the rules.
Implementation Timeline
The new controls are expected to take effect from January 2027. Banks across the UAE are currently readying the framework for these regulations, which aim to introduce more structure and stability in the debt transfer process. Borrowers planning to switch lenders should be aware of the upcoming changes and factor them into their financial decisions.
