Credit-card customers will be overjoyed when they hear the UAE Central Bank is in the process of finalising rules that will cap the interest rate banks charge on credit cards at 18 per cent a year.
The news was reported on Tuesday in the Arabic newspaper, Al Khaleej, with the Sharjah-based publication claiming the new rules will be announced in February.
Banks in the UAE currently charge between 27 and 36 per cent - much higher than those set by other Gulf nations such as 18 per cent in Qatar and Kuwait and up to 24 per cent in Saudi Arabia.
This is another sign the UAE authorities are trying to strengthen the banking sector by limiting lender's credit exposure.
The news comes eight months after the Central Bank introduced new banking regulations that required all lenders in the UAE to scrap a raft of fees, including minimum-balance charges, and cap personal loan amounts to 20 times a person's salary limit.
The loan repayment period was also set at 48 months and it was ruled that car loans could only be issued to those who put down a 20 per cent deposit.
When this new interest rate cap will be introduced is unclear, as is how the banks will react to another curb on the charges they can make.
Similarly, how this will impact the consumer is difficult to predict. While in theory, the credit-card holder could be better off by having less interest charged to their monthly bill - there is the risk that the bank will introduce an annual fee on a "free" credit card or increase the annual or monthly fee that already exists.
Whatever the consequences, the Personal Finance team is waiting with bated breath and will update you the minute the changes are made.
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
Funk Wav Bounces Vol.1
Calvin Harris
Columbia
Rooney's club record
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
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The biog
Born: Kuwait in 1986
Family: She is the youngest of seven siblings
Time in the UAE: 10 years
Hobbies: audiobooks and fitness: she works out every day, enjoying kickboxing and basketball
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
RACECARD
4.30pm Jebel Jais – Maiden (PA) Dh60,000 (Turf) 1,000m
5pm: Jabel Faya – Maiden (PA) Dh60,000 (T) 1,000m
5.30pm: Al Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 2,200m
6pm: The President’s Cup Prep – Conditions (PA) Dh100,000 (T) 2,200m
6.30pm: Abu Dhabi Equestrian Club – Prestige (PA) Dh125,000 (T) 1,600m
7pm: Al Ruwais – Group 3 (PA) Dh300,000 (T) 1,200m
7.30pm: Jebel Hafeet – Maiden (TB) Dh80,000 (T) 1,400m
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
