Lending and finance company licensing in the UAE

Rules as at 3 November 2026. Each statement carries its label and the section it comes from. The rules engine works out which route applies to your business; Clara, Candovio's AI assistant, gathers the facts.

Which regulator applies, and when

• Lending onshore. The Central Bank of the UAE licenses finance companies under its Finance Companies Regulation. Rule Finance Companies Regulation C 3/2023 Art 6.2
• Short-term consumer credit, including buy-now-pay-later. The Central Bank's restricted licence covers short-term credit only. Rule Finance Companies Regulation Art 21
• Loan-based crowdfunding onshore. The Central Bank. Rule Loan-Based Crowdfunding Regulation Art 2
• Investment crowdfunding onshore. The UAE Capital Market Authority (UAE CMA), as a Sixth Category activity. Rule UAE CMA Financial Activities Rulebook Section 2 Annex 1
• Providing credit from the DIFC or ADGM. The DFSA or the FSRA, as Category 2. Rule DFSA PIB 3.6.2; FSRA PRU 3.3.2 Free-zone firms may not take deposits from the State's markets or deal in dirhams. Rule Federal Law 8/2004 Art 4(1)(b)

Licence categories and base capital

Key requirements

• A restricted licence finance company may lend up to AED 20,000 or three months' net income, for up to 12 months, with no interest and fees capped at 30%. Rule Finance Companies Regulation Art 21, 23, 24, 25.2
• Its Authorised Individuals and board changes need prior approval, its board, senior management and control functions must be fit and proper, and it must start lending within 12 months. Rule Finance Companies Regulation Art 21.9, 26.1 to 26.7
• It reports to the Central Bank in the form and at the frequency the Central Bank sets, and notifies ownership or senior-management changes immediately. Rule Finance Companies Regulation Art 23, 24, 31.1 to 31.3
• An agent of a bank or finance company needs the partner institution's Central Bank approval rather than its own licence. Rule Finance Companies Regulation Part II
• The restricted licence rules publish no application or annual fee. Rule Finance Companies Regulation Part II

Application stages

1. Assessment. The assessment gives a provisional result in about ten minutes, reviewed by a person before it is released to you, and Candovio confirms the route with you on a call.
2. Application pack. The AI assistant drafts the business plan, policies and forms; Candovio checks every line; you approve it.
3. Submission and questions. We file the application and answer the regulator's questions from the same record.
4. Decision and conditions. The regulator decides, usually first in principle with conditions, and the licence follows once the conditions are met.

The Central Bank publishes no decision period for finance companies. Guidance CBUAE: Licensing The DFSA's 2016 target for Category 2 was 180 calendar days to an in-principle decision, not since reaffirmed. Guidance DFSA authorisation outreach, 2016 We do not promise timelines.

Questions