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The Central Bank of the UAE on February 12, 2026 introduced a new authorisation framework that permits licensed e-money providers to extend consumer loans to residents via fully regulated digital platforms. Gulf News reported that the move broadens access to credit while maintaining Central Bank of the UAE oversight that encompasses capital-adequacy requirements, ongoing reporting obligations and consumer-protection standards. Approved institutions can now facilitate small-ticket lending without forcing users to visit conventional banks, a step that integrates lending functions into existing digital wallets and payment applications.
According to the Central Bank of the UAE the framework applies to entities already holding e-money licences and requires them to adhere to the same prudential norms imposed on traditional finance companies. The regulator’s announcement builds directly on regulatory precedents established in 2023 and 2024 that formalised buy-now-pay-later products as a category of short-term credit, according to a White & Case client alert published in February 2024. One immediate beneficiary has been e& money, which received a finance company licence allowing its more than two million users to apply for personal loans, early salary access and potentially credit cards inside the same application they use for remittances and payments.
A 2026 review of digital lending trends in Dubai projected that the UAE fintech market will expand from 2.97 billion dollars in 2024 to 6.42 billion dollars by 2030 as smartphone penetration and regulatory support accelerate adoption. The Middle East and Africa digital lending platform market, valued at 604.3 million dollars in 2024, is forecast to reach 2.6 billion dollars by 2031 at a compound annual growth rate of 24.2 percent, the same analysis indicated. UAE officials estimate that achieving a 90 percent digital-transaction target by the end of 2026 could contribute more than 8 billion dirhams annually to the economy, providing context for the timing of the new lending authorisation.
The Central Bank of the UAE has emphasised that the expanded licence does not relax core compliance standards and that all providers must maintain adequate capital buffers and transparent disclosure practices. Industry data from CRIF published in January 2026 noted that digital credit access across the Middle East continues to mature at different speeds, with the UAE positioned as a leader through successive fintech regulatory updates. The new rules therefore allow e-money firms to compete more directly with banks in the consumer credit segment while remaining fully within the supervisory perimeter.
Under the authorisation framework the Central Bank of the UAE will continue to monitor lending volumes and repayment performance through mandatory reporting channels established for all finance companies. The regulator’s earlier introduction of a restricted licence category for short-term lenders, detailed in a Hadef Partners insight from January 2024, laid the groundwork for the current expansion to e-money institutions. This incremental approach has enabled the UAE to test new digital credit models while safeguarding financial stability and borrower protections.
Central Bank of the UAE statistics and supporting market assessments show that the SME digital lending segment alone reached 1.5 billion dollars in recent years, driven by demand for rapid financing solutions that traditional banks have been slower to supply. The February 2026 framework extends similar convenience to individual consumers, particularly those seeking small-value credit without extensive documentation. By embedding lending within widely used digital platforms the regulator aims to reduce frictions that have historically limited inclusion for segments lacking conventional credit histories.
