More than fine print: The power of consumer education in the UAE's financial sector

Khaleej Times

17-04-2025

Consumer education isn't optional anymore — it's a strategic imperative. Especially in a fast-paced, financially ambitious place like the UAE. With glitzy promotions, slick sales tactics, and a financial system that moves quickly, the average consumer doesn't just need information — they need insight. They need to know how to read between the lines, spot red flags, and make smart, confident money decisions. And that only happens when they're equipped with the right financial education.
This isn't about scaring people. It's about empowering them.
Consumer education means giving people the knowledge and skills to understand financial products, make informed decisions, and avoid costly mistakes. It's not about memorizing financial jargon — it's about real-world confidence. Knowing what a flat interest rate actually means. Knowing what a loan will really cost you. Knowing how to ask the right questions before you sign.
And it matters more here in the UAE than most places.
We live in a country full of opportunity — and choice. You can get a credit card in minutes. Sign up for a loan in a day. Invest in crypto, gold, stocks, or that hi-tech new platform you keep hearing about on the radio. But choice without education is a trap. It leads to debt, regret, and a cycle of poor decisions that takes years to break.
Let's not let that happen.
Financial literacy is the foundation. It's what gives people the power to say 'No thanks' to a flashy loan with hidden fees. It's what helps someone realise they don't need to max out their credit card just to keep up. It's what allows a young professional to start saving early instead of playing catch-up in their 40s.
And we're not starting from zero — but we're not where we need to be either. According to Yabi's Financial Heath Report released recently, 50.2% of respondents can't afford to cover expenses for more than 2 months – revealing just how financially fragile many of us are.
According to S&P's Global FinLit Survey, only 38% of adults in the UAE are considered financially literate. That means more than half of the population is making money decisions in the dark. Not because they're not smart — but because no one ever taught them how the system works.
That has to change.
The Central Bank is paying attention
The Central Bank of the UAE has taken a clear stance: consumer protection and financial education go hand in hand. Through its consumer protection regulation, the Central Bank has made it mandatory for Licensed Financial Institutions (LFIs) to actively engage in consumer education. Not lip service. Not one-off campaigns. Real, structured programmes.
Article 9 of the Central Bank's Consumer Protection Standards specifically requires banks to develop and maintain consumer education and awareness functions. That includes offering programmes that don't promote products, but instead inform customers about their rights, responsibilities, and options. These programs must be reviewed, tested, and reported on annually.
This is a step in the right direction.
Because when banks take education seriously, they don't just reduce customer complaints — they build trust. And when customers are informed, the entire system benefits.
What we've learned from the field
Over the years, working closely with youth, professionals, and community groups across the UAE, one thing has become crystal clear: most people aren't struggling with money because they're not smart — they're struggling because no one ever gave them the context.
Give someone the tools to understand how money really works, and their entire approach shifts. It's not just about learning new facts — it's about rewiring how they think about spending, saving, borrowing, and building.
We've seen teens who once believed investing was only for the wealthy start building their first portfolios. We've seen young professionals break free from paycheck-to-paycheck cycles — not because they earned more, but because they managed better. We've seen parents rethink how they save for their children's future. And all of that change started with one thing: education.
But not just any education. The kind that's clear, relatable, and practical. Not theory-heavy lectures. Not one-size-fits-all solutions. Just honest, real talk — and steps people can act on immediately.
That's the kind of financial education that sticks. And it's the kind that can transform lives.
Consumer education = Confidence + clarity
When people understand the fine print, they don't get trapped in it. When they understand risk, they don't walk into it blindly. And when they know their rights, they ask better, sharper questions. Consumer education empowers individuals to see through manipulative marketing — because let's face it, '0% interest' often comes with a catch. It helps them grasp the real cost of borrowing, especially the critical difference between flat and reducing interest rates. It gives them the confidence to ask for better terms — and know that negotiation is possible. It arms them against financial scams and, most importantly, helps them shift focus from short-term convenience to long-term wealth creation. This isn't just good for the individual. It's good for the banks, good for the economy, and ultimately, good for the country.
The road ahead
If we want a financially confident population, we need to get serious about consumer education. That means:
• Making education ongoing, not occasional.
• Starting younger, especially with school and university programs.
• Reaching broader, especially expats, low-income workers, and new-to-country residents.
• Collaborating more, between banks, schools, employers, and regulators.
• Simplifying the message, so it's not just understood — it's applied.
Banks must stop viewing consumer education as a marketing checkbox. It's not about selling more. It's about serving better. And yes, that builds loyalty, too.
Regulators must keep raising the bar and holding institutions accountable for the quality — not just the quantity — of their educational initiatives.
And we, consumers and educators alike, must continue pushing for programs that empower, not patronise. That build awareness and action. That change mindsets, not just metrics.
The writer is Founder at KFI Global