meta_id 3335813

On September 13, 2026, the Central Bank of the United Arab Emirates (CBUAE) brings into force Regulation C 2/2026 on Small to Medium Sized Enterprises (SME) Customer Protection. The regulation establishes a comprehensive framework for protecting SMEs as customers of financial institutions and enhancing their access to financial products and services across the UAE. The regulation applies to all banks and finance companies licensed by the CBUAE, including Islamic financial institutions. It sets requirements across eight key areas: governance and institutional oversight; disclosure and transparency; responsible conduct; responsible financing practices; complaint management and resolution; customer data protection; Shari'ah compliance for Islamic institutions; and reporting obligations to the CBUAE. Key provisions include mandatory disclosure in plain language in both English and Arabic at all stages of the customer relationship; a requirement to open bank accounts within three business days for low-risk customers; prohibition of tied selling and bundling of products; fair and reasonable fee structures proportionate to customer size; and establishment of accessible complaint resolution processes with acknowledgment within two business days. Financial institutions must provide customers with Key Facts Statements prior to offering products, maintain staff training and qualification standards, and support customers experiencing financial difficulties through restructuring and counselling services. The regulation prohibits discriminatory practices, anti-competitive conduct, and barriers to customer mobility between institutions. Data protection requirements mandate a minimum five-year retention period and immediate notification of significant breaches to affected customers and the CBUAE. The regulation cancels the previous SME Market Conduct Regulation (Circular No. 1/2021, dated January 26, 2021). Financial institutions must comply with all provisions by the effective date. Violations may result in supervisory action, administrative action, or financial sanctions imposed by the CBUAE.