The Central Bank has directed banks to finally abolish the minimum salary requirement, which has been in place for years and set at 5,000 dirhams in most banks as a condition for obtaining financing. Banks are now free to set their own required salary threshold according to their internal policies, which will allow individuals with low incomes to access various banking services, most notably 'on-demand cash'.
Officials at the Central Bank told 'Emirates Today' that in the near future, it will become possible to open bank accounts for all residents of the country, especially the youth, those with low salaries, and the labor category. These accounts will be linked with the Central Bank's Wage Protection System, ensuring that banks can deduct any amounts lent to the 'blue-collar' category of low-salary workers and laborers as soon as their monthly salaries are transferred.
They explained that the goal is to expand financial inclusion on a wider scale and to ensure that all individuals in the UAE have access to banking services.
In a related development, under the patronage of Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE, Deputy Prime Minister, and Chairman of the Board of Directors of the UAE Central Bank, the Governor of the Central Bank, Khaled Mohamed Balushi, yesterday opened the 'Middle East and North Africa Financial Inclusion Leaders Summit', which the Central Bank is hosting for two days in Abu Dhabi, in partnership with the Arab Monetary Fund and the World Bank.
In his opening speech, Balushi affirmed the state's firm commitment to enhancing financial inclusion as a fundamental pillar of sustainable development and a pillar of economic flexibility, saying: 'The UAE is moving forward with steady steps to consolidate its position as a global model in financial and economic innovation and comprehensive development, based on an ambitious national approach embodied in the UAE Vision 2031 and the UAE Centennial 2071, and we are directing our efforts towards building a more inclusive, efficient, and sustainable financial system'.
He added: 'Enhancing financial inclusion represents a central pillar in the Central Bank's efforts to build an inclusive and sustainable financial system that empowers all segments of society to access growth opportunities and actively contribute to the country's economic development journey'.
National Strategy for Financial Inclusion.. 12 Initiatives for 'Fair Access to Financial Services'
The first day of the 'Middle East and North Africa Financial Inclusion Leaders Summit', hosted by the Central Bank, saw the launch of national and international initiatives to support financial inclusion. The Governor of the Central Bank, Khaled Mohamed Balushi, launched the UAE's National Strategy for Financial Inclusion 2026-2030, developed by the Central Bank with the support of its international partners from the World Bank, OECD, Arab Monetary Fund, and with the contribution of more than 70 national stakeholders.
The strategy includes a package of 12 pioneering initiatives to expand financial inclusion across various segments of society. It includes enabling comprehensive financial accounts for all residents, developing innovative products targeting women, youth, and people of determination, and enabling entrepreneurs and micro, small, and medium-sized enterprises to access financial services. It also adopts a national plan for financial culture and seeks to establish a global center for financial health in the UAE, reflecting the state's commitment to building a comprehensive and sustainable financial system.
The strategy represents a comprehensive national framework that aims to empower all individuals in society with fair and secure access to financial services and to cement the UAE's global leadership in developing a comprehensive and sustainable financial system, reflecting the state's commitment to leading the financial transition regionally and internationally.
Balushi confirmed that the National Strategy for Financial Inclusion is designed to be comprehensive for all segments of society, with a focus on a number of key national priorities, most notably: enhancing the legislative framework that supports financial inclusion, accelerating the digital transformation of the financial sector, cementing financial culture and health for all, and enabling the data and artificial intelligence system to support innovation, strategic decision-making, and the development of the National Financial Health Index.
In turn, Assistant Governor of the Central Bank for Financial Crime — Market Conduct and Consumer Protection Protection, Fatima Abdullah Al Jabri, confirmed that the National Strategy for Financial Inclusion aims to achieve a set of goals by 2030, the most prominent of which are increasing the rate of ownership of financial accounts and increasing the percentage of individuals benefiting from digital payment technologies, with efforts directed towards aligning financial innovation with national regulatory frameworks to enhance the flexibility and sustainability of the financial sector.
Khaled Balushi: • Enhancing financial inclusion represents a central pillar in the Central Bank's efforts to build a comprehensive financial system.
