Latest news with #UAECentralBank
Khaleej Times
20-05-2025
- Khaleej Times
Dubai: Asian passenger gets 2-year jail term, Dh100,000 fine for smuggling controlled medication
A 45-year-old Asian man has been sentenced to two years in prison and fined Dh100,000 by the Dubai Criminal Court after being caught with hundreds of capsules of restricted medication in his luggage. The passenger was intercepted at Dubai International Airport when customs officers found 480 capsules during a baggage inspection. Lab analysis confirmed the pills contained a controlled substance that cannot be brought into the country without a valid prescription. Investigations revealed the man did not have any medical documents to justify possession. The man told authorities that he had transported the medication from his home country to deliver it to someone in the UAE. In addition to jail time and a fine, the court ordered the man's deportation after serving his sentence. He is also banned from transferring or depositing money to others, directly or indirectly, without approval from the UAE Central Bank and the Ministry of Interior for a period of two years after release. Dubai
Hi Dubai
12-05-2025
- Hi Dubai
UAE: How to Verify a Travel Ban Related to Credit Card Debt?
Question: I defaulted on several credit card payments after losing my job, and although I've settled some of the debts, I no longer have records of those payments. I need to travel urgently to my home country, but I'm unsure if any legal cases or travel bans are still in effect. How can I check my legal status, and am I allowed to leave the UAE if any cases are pending? Answer: A UAE resident who defaulted on multiple credit cards after losing their job is now facing an urgent need to travel to their home country — but without proof of cleared payments, they are unsure if any legal cases or travel bans remain. This raises a critical question: how can one check their legal status, and is it possible to leave the UAE if any financial cases are pending? Under UAE banking regulations, missing three consecutive or six non-consecutive monthly payments can result in default status, allowing banks to demand full repayment without prior court action. This clause is outlined in Article 4(4) of the Personal Loan Agreement format approved by the UAE Central Bank. If a bank takes the matter to court and the outstanding amount exceeds Dh10,000, a judge can impose a travel ban. This falls under Article 324 of Federal Decree-Law No. 42 of 2022. A travel ban remains in place until the debt is cleared, though it can be lifted if the creditor consents in writing, if the debtor provides a sufficient guarantee, or if the full debt is deposited with the court. Other conditions for lifting a ban include creditor inaction—such as failing to file a case within eight days of the ban or not initiating enforcement within 30 days of a final judgment. A ban may also lapse if three years pass without enforcement or if the individual's UAE stay becomes illegal and deportation is ordered. To avoid complications, anyone unsure about pending cases or travel restrictions should confirm their legal status before attempting to leave the country. This can be done through the Dubai Police Smart App, at a local police station, or by checking with Dubai Courts. Engaging a UAE-based lawyer to conduct the checks and represent the individual may also be a prudent step. Civil proceedings, not criminal charges, typically follow credit card default—especially if no post-dated cheques were involved. But even civil cases can lead to significant legal and travel limitations if left unresolved. For those in similar situations, proactive legal verification is essential to avoid unexpected airport detentions or denied departures. News Source: Khaleej Times
Arabian Business
06-05-2025
- Business
- Arabian Business
UAE banks fuel real estate demand surge with lower mortgage rates, extended financing facilities
Banks in the UAE are emerging as the new drivers of demand surge in the property market in the country, luring international and domestic investors with mortgage rates below the UAE Central Bank denominated rates, despite fading expectations of cuts in interest rates any time soon, market players said. Some of the banks are now offering mortgages at below 4 per cent as against the three-month Emirates Interbank Offered Rate (EIBOR) of 4.2 – 4.3 per cent, they said. This, along with the strengthening of currencies like the British pound and euro against the dirham in the wake of the weakening of the US dollar, is triggering a major demand spike for residential real estate, as properties in Dubai have effectively become more affordable for international buyers. by removing the AED 1 million or 50 per cent upfront payment requirement for property-linked golden visas. 'The macroeconomic shifts underway globally triggered by rising tariff and tax rates, and a weakening US dollar in 2025, are driving increased interest in the UAE real estate market, particularly from foreign nationals,' Sawan Karia, Director, Broker Channel at Huspy, a Dubai-based leading player in the mortgage market, told Arabian Business. 'The currency advantage, coupled with economic uncertainty in other global markets, is leading to a notable increase in mortgage activity – not just from ultra-high-net-worth individuals, but also from salaried professionals and non-resident investors who are now choosing to finance property purchases in the UAE,' he said. Karia said while Dubai has long appealed to non-resident buyers, that demand is accelerating now, fuelled by competitive lending rates, long-term residency options, and a high standard of living. Senior executives at some of the city-based investment and real estate consultancies also confirmed the latest mortgage and currency-linked demand surge in the real estate sector. UAE banks stepping up their mortgage play Sector experts said the softening mortgage rate-led demand in the UAE real estate market is evident from the fast-narrowing gap between total market volume and mortgage activity. Banks' willingness to step in with the final payments for off-plan properties bought under front-loaded developer payment plans is helping this, they said. Sankey Prasad, CMD, Colliers Middle East and India, said that with mortgage volumes in Dubai alone surging 24 per cent year-on-year in Q1 2025 as per Property Monitor, banks are clearly stepping in as demand catalysts. 'This will further fuel and stabilise demand for residential units across major micro markets in Dubai,' Prasad told Arabian Business. The Colliers Middle East and India chief executive said UAE banks are now playing a pivotal role in fuelling property market momentum by offering mortgage rates that undercut the central bank's benchmark rate. 'This is a strategic move to capture growing investor appetite amid a prolonged high-interest-rate cycle,' he said. Citing that the British pound gained nearly 4 per cent and the euro over 3 per cent against the UAE dirham since the start of the year, Prasad said: 'This FX-driven affordability, combined with flexible local financing, is intensifying global demand for residential assets in prime districts.' Karia said while the UAE's mortgage market accounted for $62 billion of the $240 billion in total real estate transactions last year, it's important to contextualise that figure. 'One emerging trend is the rise of front-loaded developer payment plans – structures like 70-30 or even 80-20, where the majority of payments are made during construction. 'In response, and in alignment with central bank regulations, several banks are now willing to step in and finance the final payment once buyers have paid at least 50 per cent of the property value,' he said. Industry players said that while such bank financings were earlier limited to Tier 1 developers, they are now seeing this financing model gradually extending to a broader base. As for rate cuts, they said at the beginning of the year, market expectations pointed to as many as five interest rate cuts. 'That outlook has since softened, with most now anticipating just two, or possibly three, cuts,' Karia said. Given that the UAE dirham is pegged to the US dollar, any decision by the US Federal Reserve to lower rates has a direct influence on borrowing costs and the Emirates Interbank Offered Rate (EIBOR). AI boosts mortgage efficiency Market experts said along with the lower mortgage rates, the latest AI-led initiatives in the mortgage sector are also playing a pivotal role in attracting investors to access bank finances in Dubai. Huspy was the first to be off the block in the region, announcing an AI-powered mortgage chatbot on WhatsApp late last month, significantly reducing the time taken to secure a home loan from weeks to just a day. Sector players said that while deeper integrations with banking partners are still under development, the AI-driven initiative is already helping to significantly reduce the time taken to prepare mortgage applications, which typically runs to multiple pages. Real-time checks by company brokers or experts identify missing pages or values outside expected ranges, significantly reducing back-and-forth communication. 'In a market where deals move quickly, there is often little time to unpack bank jargon before committing to a home purchase,' Mo Ghahroudi, VP – AI at Huspy, told Arabian Business. 'Huspy AI addresses this gap by offering real-time responses, based on the most up-to-date bank offers, around the clock,' he said. Sector experts said borrower expectations are evolving quickly on the technology front, with customers increasingly wanting a digital-first experience – one where documents can be submitted online, approvals are faster, and communication is seamless. While banks are working to modernise legacy systems, the industry now faces a pivotal moment – scale up human support to meet today's volume or invest in systems that can sustainably deliver efficiency tomorrow, they said, adding that in the meantime, platforms that bridge this gap are winning borrower trust by offering the speed and simplicity the market now demands.
The National
05-05-2025
- Business
- The National
Hiring in UAE and Saudi Arabia rises sharply on non-oil economic boost
The pace of hiring in the UAE and Saudi Arabia rose sharply in April after business activity in their non-oil private sector economies maintained strong growth amid the continued push for diversification. The headline S&P Global UAE purchasing managers' index remained unchanged at 54 in April, remaining well above the 50-point mark that separates economic expansion from contraction. Staff numbers across the Arab world's second-largest economy rose at the sharpest rate in 11 months, after a relatively subdued period of job creation since the final quarter of last year. Businesses surveyed attributed higher employment to a 'growing need to address workloads', which the data indicated rose to levels seen in early 2024. 'After several months of mild increases in payroll numbers, despite robust sales growth, job creation rose to its highest level in 11 months as firms signalled this was mainly done as part of efforts to reduce their backlogs, which rose sharply but at the softest pace in six months,' David Owen, senior economist at S&P Global Market Intelligence, said. Employment growth was still modest overall, however, adding to suggestions that 'some firms may be struggling to recruit' amid talent shortages. 'The headline PMI's reading of 54 … unchanged from March, signals that underlying business conditions are still improving robustly,' Mr Owen said. In Saudi Arabia, the headline Riyad Bank purchasing managers' index slipped last month to 55.6, but remained well within the expansion territory. Employment numbers in the kingdom which have been rising since February, increased in April at the joint-fastest level since October 2014. 'Employment in the non-oil private sector has been particularly vibrant,' said Naif Al Ghaith, chief economist at Riyad Bank. The fastest pace of hiring in more than 10 years in April 'is a response to rising sales and increased business activity, prompting firms to expand staffing capacities' he said. Economies in the Gulf region, which accounts for about a third of the world's proven oil reserves, have maintained a robust pace of the expansion despite global economic headwinds and the geopolitical uncertainty over the past few years. The UAE economy, which grew by 3.9 per cent in 2024, driven by the country's non-oil sectors, is expected to expand by 4.7 per cent in 2025 and by 5.7 per cent in 2026, the UAE Central Bank said in its 2024 annual report, released last month. The non-oil economy of the Emirates grew by 4.6 per cent last year and is expected to hit 5.1 per cent expansion this year, UAE Central Bank data indicated. Meanwhile, Saudi Arabia's gross domestic product grew by 2.7 per cent in the first quarter of 2025, driven by a 4.2 per cent jump in non-oil activities in the kingdom, which is diversifying its economy away from hydrocarbons. Government activities grew by 3.2 per cent in the first three months of this year, while oil activities recorded a 1.4 per cent year-on-year decline, according to latest data from the kingdom's General Authority for Statistics. S&P said business activity at non-oil companies in the kingdom increased sharply at the start of the second quarter, with firms surveyed attributing higher volume of sales driving output. New project approvals, as well as strong tourist numbers, also drove non-oil economic activity. 'Although the rate of output growth was marked, it was the slowest in seven months, partly attributed to a softer increase in sales volumes,' according to the PMI survey. 'In some instances, firms noted that global economic uncertainty had impacted client spending, while others cited rising competitive pressures.'
Gulf Insider
04-05-2025
- Gulf Insider
Dubai: Asian Passenger Gets 2-Year Jail Term, Dh100,000 Fine for Smuggling Controlled Medication
A 45-year-old Asian man has been sentenced to two years in prison and fined Dh100,000 by the Dubai Criminal Court after being caught with hundreds of capsules of restricted medication in his luggage. The passenger was intercepted at Dubai International Airport when customs officers found 480 capsules during a baggage inspection. Lab analysis confirmed the pills contained a controlled substance that cannot be brought into the country without a valid prescription. Investigations revealed the man did not have any medical documents to justify possession. The man told authorities that he had transported the medication from his home country to deliver it to someone in the UAE. In addition to jail time and a fine, the court ordered the man's deportation after serving his sentence. He is also banned from transferring or depositing money to others, directly or indirectly, without approval from the UAE Central Bank and the Ministry of Interior for a period of two years after release.
