Banks are moving to extend banking facilities and exemptions from fees

Informed banking sources told Emirates Today that banks operating in the country are moving to extend the packages of exemptions and banking facilities that they launched during the past months, for a period extending from two months to the end of 2026, as the situation requires.

In its early stages, these exemptions included canceling or reducing cash withdrawal fees, fees for using some ATMs, and debit and credit card fees, in addition to facilities on personal loans, and extending interest-free installment programs, with the aim of reducing the financial burdens on individual customers and small companies.

Major banks had announced initiatives that included temporary exemptions from some banking fees, in addition to extending payment and installment plans for customers affected by regional conditions.

Reducing stress

The sources, who preferred not to publish their names, stated that a number of banks are currently considering extending the current exemptions until at least the end of 2026, especially those related to transfer fees, some digital services, and limited late fees, in order to maintain customer loyalty and reduce operational pressures on small and medium-sized companies.

The strong competition between UAE banks is a major factor in maintaining exemption programs, especially with the expansion of digital banks and the increased sensitivity of customers towards fees and commissions.

Banks have also become aware that imposing additional fees may lead customers to move to competing institutions that offer less expensive services or more flexible digital offers. In addition, the widespread digital transformation in the banking sector has reduced part of traditional operating costs, which has allowed some banks more space to provide temporary exemptions without a significant impact on profitability.

According to sources, a number of banks are currently reviewing the structure of international fees, and may move towards providing partial exemptions or seasonal cashback offers related to travel and foreign spending, with the aim of stimulating the use of cards and maintaining the competitiveness of banking products.

Censorship

At the same time, the Central Bank continues to closely follow the file of bank fees, especially after the controversy raised by some increases in account and card fees during the last period.

According to the same sources, it is expected that the Central Bank will encourage banks to adopt flexible and balanced solutions that take into account economic and regional conditions, while at the same time preserving the stability and profitability of the banking sector.

The sources believe that what is currently happening does not represent a permanent cancellation of fees, but rather a shift towards a temporary flexibility model, where banks use exemptions as a tool to manage the relationship with customers during economically and geopolitically sensitive periods.

It is expected that this policy will continue to motivate customers, with banks keen to maintain growth rates of deposits, spending, and digital use of banking services.

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Support small businesses

It is expected that the next phase will focus on supporting small and medium-sized companies, through: extending the exemption from some commercial account fees, reducing international transfer fees, as well as granting additional grace periods for some short-term financing, and facilitating the rescheduling of obligations affected by the slowdown in trade or disruption of supply chains. This comes at a time when banks are seeking to maintain the quality of credit portfolios, and reduce any potential risks in some sectors related to transportation, tourism, and logistics services.

. Banks are currently reviewing their international fee structure, and may offer partial waivers or seasonal cashback offers linked to travel and overseas spending.