UAE - DIFC
Status
No steps taken to implement legislation.
Is the country considering regulation?
BNPL is a form of providing credit and requires a financial services licence to carry out this type of business in or from the DIFC.
Current state of regulation regarding BNPL?
This position was confirmed in August 2022 when the Dubai Financial Services Authority published an explainer (accessible) setting out this view.Outline the proposals to change regulation?
The Dubai Financial Services Authority issued Consultation Paper 146 in November 2022 which included a proposal to amend the financial services activity “Providing Credit” to clarify that this activity includes BNPL providers who finance the purchase of goods or services.
The proposed change is not an amendment to the scope of existing regulation which already captures BNPL – but a clarification of the existing position within the primary law.
