In a move aimed at enhancing access to banking services for individuals, the Central Bank announced the cancellation of the minimum salary requirement for financing. These amendments represent a radical change in how banks interact with their customers, especially those with low incomes. With the elimination of the minimum salary requirement, citizens and residents will be able to access a wide range of financial services more easily.
Cancellation of the Minimum Salary Requirement
The Central Bank recently directed banks to abolish the minimum salary requirement, which had been in place for years, typically set at 5,000 dirhams in most financial institutions. Each bank is now free to determine the required salary according to its internal policy, facilitating access for low-income earners to services such as “cash on demand.” This step reflects the Central Bank’s commitment to opening doors for banking services for everyone.
Opening New Bank Accounts
Officials from the Central Bank clarified that the upcoming period will see the possibility of opening bank accounts for all residents, especially youth, low-income earners, and workers. These accounts will be linked to the Wage Protection System of the bank, ensuring that banks can deduct any borrowed amounts when transferring monthly salaries for workers. This linkage is considered an important step towards financial inclusion.
Financial Inclusion Leaders Summit
Coinciding with these developments, the Governor of the Central Bank, Khalid Mohammed Balama, inaugurated the “Financial Inclusion Leaders Summit in the Middle East and North Africa” in Abu Dhabi, under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan. In his opening speech, Balama emphasized the importance of promoting financial inclusion as a pillar of sustainable development, noting that the UAE aims to be a global model for financial innovation.
National Financial Inclusion Strategy
During the summit, the National Financial Inclusion Strategy for the UAE 2026-2030 was launched, comprising 12 initiatives aimed at expanding financial inclusion for all segments of society. These initiatives include developing inclusive financial accounts for women, youth, and people of determination, as well as enhancing access to financial services. The importance of establishing a global center for financial health was also highlighted, demonstrating the UAE’s commitment to building a comprehensive and sustainable financial system.
With the cancellation of the minimum salary requirement for financing, the future looks brighter for individuals seeking access to financial services in the UAE. The Central Bank’s actions represent tangible steps towards realizing the UAE Vision 2031, strengthening economic ties and reflecting the country’s commitment to enhancing financial inclusion.