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Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE: How to check for a travel ban due to credit card debt
Question: I have multiple bank cases due to failure to repay my credit card payments after I lost my job. I managed to clear payments on some of the credit cards. But I forgot to keep a record of them. I must travel to my home country urgently, but I don't know whether any legal cases are still pending. How can I find out about the travel ban, and can I travel abroad if there are cases against me? Answer: A credit card holder who fails to pay three consecutive monthly or six non-consecutive bills may be considered in default. This is under Article 4 (4) of the Personal Loan Agreement format of Loan Agreements Formats Approved by the Central Bank of UAE, which states: "The loan elapses and all the instalments, interests and any other fees and expenses become due and payable immediately without having to give any notification or any court ruling and without prejudice to any other rights of the bank according to this agreement or by the law - in the event that the borrower failed to pay three consecutive instalments or six non-consecutive instalments of the monthly instalments without approval of the bank." In the UAE, a competent court can impose a travel ban when a creditor submits a request demonstrating the existence of a serious, due, and specific financial obligation of the outstanding amount of more than Dh10,000. The court may require the creditor to provide a financial guarantee to cover any potential harm to the debtor if the ban is later found to be unjustified. This is by Article 324 of Federal Decree-Law No. 42 of 2022, promulgating the Civil Procedure Code. Furthermore, a travel ban issued against a debtor remains in effect until the debt is settled. However, the court may lift the ban if the reason for it no longer exists, the creditor agrees in writing, and the debtor provides a sufficient bank guarantee or approved guarantor or deposits the full debt amount with the court. It may also be lifted if the creditor fails to file a case within 8 days or start enforcement within 30 days of a final judgment, if no enforcement action has been taken for three years, or if authorities confirm the debtor's stay in the UAE is illegal and they are to be deported. This is in accordance with Article 325 of the UAE Civil Code, "The travel ban order shall remain in force until the expiration, for whatever reason, of the debtor's obligation towards their creditor who has obtained the order. Nevertheless, the competent judge may order that the aforesaid ban shall lapse in the following cases: If any of the conditions necessary for the making of the travel ban order lapse; If the Creditor agrees in writing that the order may be revoked; If the debtor submits a sufficient bank guarantee, or a solvent guarantor accepted by the Judge, and the bail report that includes the guarantor's undertaking is accompanied by the judgment or order issued to oblige the debtor with an Execution Writ before them, with what this judgment decrees; If the debtor lodges with the Court's Treasury a sum of money equivalent to the debt and the expenses, earmarked for the satisfaction of the right of the creditor on whose application the order was made, and such sum shall be deemed to be under attachment by operation of law in favour of the creditor; If the creditor fails to submit to the Judge material to demonstrate that the action for the debt has been brought within (8) eight days from the making of the travel ban order, or if they have not commenced enforcement of a final judgment made in their favour within (30) thirty days from such judgment becoming final; If (3) three years have elapsed since the last valid procedure of executing the final judgment on the debt, the travel ban order was issued to satisfy it, without the creditor applying to the Execution Judge with a request to continue the procedures for executing such judgment; or If a request is received from the competent authorities stating that the stay of the person banned from travelling in the State has become illegal and they shall be deported, and it is not proven that they have assets in the State that can be subjected to execution." In the UAE, failure to repay credit card debt may result in civil proceedings, depending on the terms of the credit arrangement and whether post-dated cheques or signed undertakings were involved. If a bank initiates legal action, it could lead to a civil court case. If you have settled some of your credit card accounts but did not retain records of payment, and are uncertain whether any legal actions are still pending, it may be advisable to verify your legal status/travel ban before planning to leave the UAE. This can be done through online platforms like the Dubai Police Smart App or by visiting a local police station. Additionally, you may check with the Dubai Court if any cases have been filed against you. Alternatively, you may appoint legal counsel in the UAE to act for you. Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: Readers may e-mail their questions to: news@ or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
Khaleej Times
30-03-2025
- Business
- Khaleej Times
UAE: Can banks block end-of-service benefits for unpaid loans or credit card bills?
Question: I resigned from my work recently. I have some outstanding loans and credit card bills. Can my bank claim these from my end-of-service settlement? Answer: In the UAE, a personal loan provided by a lender to a borrower may fall under the provisions of Notice No. 3692/2012 of the Central Bank of the UAE pertaining to General Terms & Conditions and Loan Agreements texts drafted and approved by Emirates Bank Association. When a personal loan is granted to a borrower, a lender will enter into a personal loan agreement with the borrower. A personal loan agreement between a lender and a borrower may include a clause stating that the salary and the end-of-service benefits of such borrower should be credited to a bank account of a lender from whom he or she has availed personal loan. This is in accordance with Article 2(1) of Securities and Documentation of the Personal Loan Agreements Formats Approved by the Central Bank of UAE. As a guarantee and security to pay the loan interests, commissions, fees, and any other amounts that become due under this Agreement the Borrower commits and undertakes as follows: 1. Provide the bank with a letter from the borrower's employer pursuant to which the employer undertakes to transfer his monthly salary and the end of service benefits to the bank throughout the loan period." Furthermore, a lender may have the right to demand a borrower to pay the outstanding balance of the personal loan if it feels that an event (maybe termination of employment) could lead to the inability of a borrower to repay the personal loan. This is by Article 4(6) Personal Loan Agreements Formats Approved by Central Bank of UAE, which states, 'The Loan elapses and all the instalments, interests and any other fees and expenses become due and payable immediately without having to give any notification or any court ruling and without prejudice to any other rights of the bank according to this Agreement or by the law in the event of the occurrence of any of the listed below events: 6. If the bank notices that there are grounds which could lead to the inability of the borrower and/or any of his guarantors, as permissible under Central Bank's prevailing regulations, to fulfil his obligations towards the bank." Based on the aforementioned guidelines of the UAE Central Bank on personal loan agreements, in the event of termination of your employment, the lender may not allow withdrawal of money from the account once your end-of-service benefits are credited to the bank account with the lender with whom you have an outstanding personal loan.
Khaleej Times
27-03-2025
- Business
- Khaleej Times
New UAE dirham symbol: When will digital currency roll out? Will fresh banknotes be issued?
The Central Bank of UAE on Thursday launched new symbols for the national currency, the dirham, in its physical and digital forms, which reflect its national identity and aspiration to become a major financial and cross-border payment gateway. The first letter of the English name of the dirham will serve as an international symbol representing the nation's currency, incorporating two horizontal lines that embody the stability of the UAE currency and are inspired by the UAE flag. On the other hand, the digital dirham symbol features a circle surrounding the physical currency symbol, using the colours of the UAE flag to reflect pride and national identity. Currently, all the major global currencies – dollar, euro, yen, rupee, yuan and rouble – have their symbols, reflecting their countries' strength and pride. New currency notes? Hassan Fawaz, chairman and founder of GivTrade, said that countries typically issue new currency notes after introducing new symbols, following a systematic approach. 'The process usually involves gradual implementation, with new notes being introduced in phases while old notes remain legal tender during the transition period. The main reason for issuing new series or upgrades is typically security enhancement, combined with the integration of new design elements,' he said. In 2010, India introduced a new symbol for its currency, the rupee. Later, it printed new rupee notes with the symbol. The Central Bank of UAE became the first central bank in the Arab region to introduce it. At par with global currencies As the UAE currency's usage is growing globally, the new symbols will place Emirati dirham at par with global currencies. According to the UK's largest foreign exchange provider, the UAE dirham was among the top 10 best-selling currencies between February 2024 to January 2025. It was ranked the sixth best-selling currency in the UK during the period. Khaled Mohamed Balama, governor of the Central Bank of UAE, said the new symbol for the UAE's national currency in both its physical and digital forms, and the design of the Digital Dirham wallet reflects the significant advancements in the implementation of the Digital Dirham programme. 'It is anticipated that the Digital Dirham as a blockchain-based platform with cutting-edge capabilities shall substantially enhance financial stability, inclusion, resilience, and combatting financial crime. It will further enable the development of innovative digital products, services, and new business models while reducing cost and increasing access to international markets,' he said. Digital Dirham The 'Digital Dirham' is a digital version of the UAE's national currency, equipped with high levels of security which will help reduce costs of payments through its reliance on blockchain technology, which by its technical design ensures effective risk management, data protection/privacy, and atomic transaction completion. The regulator said individuals and businesses will be able to obtain the Digital Dirham through licensed financial institutions, such as banks, exchange houses, finance companies and fintech companies, according to the use cases that will be activated. The issuance of the Digital Dirham is expected to take place in the last quarter of the year 2025 for the retail sector. The Digital Dirham will facilitate offers several key advantages and characteristics including tokenisation and expanding access to liquidity through digital asset fractionalisation. It will also be used with smart contracts to programme the execution of complex transactions automatically, settling them instantly, in addition to multi-stage and multi-party transactions that involve conditions or obligations. The Digital Dirham will be accepted as a universal payment instrument in all payment outlets and channels alongside physical currency. Integrated platform and digital wallet The Central Bank said it has developed an integrated and secure platform for the issuance, circulation, and use of the Digital Dirham, including a Digital Dirham wallet. The wallet is designed for ease of use and management by both individuals and businesses, enabling a number of financial transactions, including retail, wholesale, and cross-border payments, money transfers and withdrawals, top-ups, and redemption of the Digital Dirham when needed. This ensures a seamless and convenient user experience. The platform is also characterised by its ability to easily incorporate innovative financial solutions tailored to emerging use cases driven by the rapid growth of the digital economy in the UAE. Cross-border trade payment hub Hassan Fawaz, chairman and founder of GivTrade, said the UAE's introduction of new dirham symbols and digital forms represents 'a step towards modernising its currency system and is part of the UAE's Financial Infrastructure Transformation (FIT) Programme.' 'The new symbols reflect the UAE's global currency aspirations, supported by its strong economic position with record trade levels of $800 billion. While these changes demonstrate the UAE's commitment to currency modernisation and digital innovation, achieving a global currency status will depend on continued economic growth, successful Digital Dirham implementation, and further integration into international finance systems,' he said. Samer Hasn, senior market analyst at said the new symbols reflect the UAE's commitment to further cement its position as a global financial hub. 'The circle surrounding the symbol in the Dirham logo represents the country's approach to embracing revolutionary blockchain technology. This technology will serve as a cornerstone in positioning the UAE not only as a global financial market centre but also as an international hub for settling cross-border trade payments using a local currency supported by revolutionary technology that aims to make transactions faster, safer, and less costly,' said Hasn. He added that the UAE may be seeking, through this initiative, to capitalise on the redrawing of the international trade map amid the trade war to enhance its standing in the global financial system.
Arab News
17-03-2025
- Business
- Arab News
Jordan's economy to expand by 2.7% in 2025: Central Bank governor
RIYADH: Jordan's economy is expected to grow 2.7 percent in 2025, further accelerating to 3.5 percent in the medium term, according to the governor of the country's central bank. Adel Sharkas made the comments in the wake of credit rating agency S&P Global stating that Jordan's GDP expansion will be driven by the recovery of the tourism sector, as well as increasing trade relationships with Syria and Iraq. The central bank governor added that inflation in Jordan reached 2.2 percent in the first two months of this year and is expected to stabilize at 2 percent for 2025, the country's news agency, Petra, reported. The growth aligns with the broader trend in the Middle East, with Saudi Arabia forecasting a gross domestic product expansion of 4.6 percent in 2025, and the Central Bank of UAE projecting the Emirates' economy will increase by 4.5 percent this year and 5.5 percent in 2026. Reflecting on the state of Jordan's financial health, Sharkas said: 'Our national economy has demonstrated exceptional resilience against challenges and high flexibility, enabling adaptation and limitation of consequences over the past five years, beginning with the coronavirus pandemic and subsequent consecutive external economic shocks.' He added that Jordan attracted foreign direct investments valued at $1.3 billion during the first three quarters of 2024. The CBJ governor further said that tourism income also jumped 22 percent in January compared to the same period last year. Developing the tourism sector is crucial for Jordan, as the country considers this industry pivotal for economic growth and job creation. Through the Jordan National Tourism Strategy 2021-2025, the country aims to attract international visitors with its archaeological and cultural heritage along with unique natural landscapes. In a ceremony on March 16, Jordan's banking sector committed 90 million dinars ($126.92 million) to fund health and education projects over the next three years. Jafar Hassan, the country's prime minister, said: 'This banking sector that you represent has been a fundamental pillar supporting our national economy's strength, stability and resilience throughout history.' He added: 'During a quarter century, this great development of our Jordanian banking sector has materialized, achieving advanced global ratings, particularly in financial strength and banking system solidity.' In March, the World Bank said that it is assessing the financing of five projects aimed at supporting economic reforms, social protection, and entrepreneurship in Jordan, with a total potential investment valued at $900 million.
Yemen Online
06-03-2025
- Business
- Yemen Online
UAE sees 3.8% GDP growth in first 9 months of 2024
The UAE witnessed a 3.8 percent annual expansion in its gross domestic product in the first nine months of 2024, driven by the growth of the Emirates' non-oil sector. Also during this period, the UAE's non-oil economy grew by 4.5 percent year on year to 987 billion dirhams ($268.74 billion), the state news agency WAM reported. The report added that the contribution of non-oil activities to UAE's real GDP reached 74.6 percent by the end of the first nine months of 2024, while oil-related activities contributed 25.4 percent. The growth of the non-oil sector in the UAE aligns with the broader trend in the Middle East region, where countries such as Saudi Arabia are pursuing economic diversification programs. Abdullah bin Touq Al Marri, UAE's minister of economy, said that the continuous growth of the country's economy reaffirms the success of the Emirates' economic policies and strategies to enhance diversification. He added that the country also facilitates a friendly environment for business activities and promotes the expansion of new economic sectors as a key driver for sustainable economic and social development. An analysis by the Central Bank of UAE in December said that the country's GDP is expected to post a growth of 4 percent in 2024, driven by strong performance across key non-oil sectors, including tourism, transportation, and financial services, as well as insurance, construction, real estate, and communications. CBUAE added that the Emirates' economic growth is projected to accelerate further to 4.5 percent in 2025 and 5.5 percent in 2026. The apex financial institution further said that the UAE's non-oil GDP is projected to expand by 4.9 percent in 2024 and 5 percent in 2025. The study attributed this projected boost to strategic government policies aimed at attracting foreign investment and promoting economic diversification. In terms of the economic growth in the region, data released by Bahrain's Information & eGovernment Authority in January revealed that the country's GDP witnessed an increased rate of 2.1 percent in the third quarter of 2024 compared to the same period in 2023. In December, Qatar's National Planning Center revealed that the country's GDP rose by 2 percent in the third quarter of 2024 compared to the same period in the previous year. Earlier this month, the Saudi Arabia's General Authority for Statistics revealed that the nation's non-oil exports increased by 17.3 percent in the fourth quarter 2024 to reach SR82.05 billion ($21.88 billion).
