Banking & Finance Disputes

Banking relationships are regulated by the Central Bank of the UAE under a new law in force since 16 September 2025, while disputes over loans, facilities and guarantees are decided under the commercial and civil laws and the terms of the banking documents.

The documents set the terms. Facility letters, general terms, security documents and account statements define what is owed. Calculations of interest, fees and the outstanding balance are frequently at the centre of the dispute and may be referred to a court-appointed expert.

Bank guarantees. A bank guarantee is generally independent of the underlying contract, so a dispute between the parties to that contract does not by itself stop the bank from paying on a compliant demand.

Customer complaints. A bank must give written reasons if it rejects a customer's complaint. The customer may then complain to the Central Bank's independent disputes unit (Sanadak), whose judge-led committees issue decisions that are final for the bank in disputes up to AED 100,000; above that amount, a decision can be challenged before the Court of Appeal within 30 days.

Linked proceedings. Banking disputes often run alongside cheque enforcement, attachments or restructuring proceedings. Each route has its own timing and consequences, and they are best assessed together.

Request full account statements and copies of every document you signed before responding to a demand. Early discussion of rescheduling can sometimes avoid enforcement steps.

Legal framework
Federal Decree-Law No. 6 of 2025 regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business (repealed Federal Decree-Law No. 14 of 2018)
Federal Decree-Law No. 50 of 2022 (Commercial Transactions Law): banking operations, loans, guarantees and interest
Federal Decree-Law No. 51 of 2023 (Financial Restructuring and Bankruptcy), where insolvency is in issue

The 2025 law does not apply in the financial free zones (DIFC and ADGM), which have their own regulators and courts. Institutions had a one-year transition period to align with the new law.