UAE banks announce January 2027 contract and fee updates
UAE banks are sending customers revised contracts and notices of fee-schedule changes ahead of January 2027. The announcements differ by bank: some revise contractual language, while others concern pricing, digital identity checks or the services available to certain customers. They do not amount to an across-the-board fee increase.
Layla Haddad
Which updates affect fees and services?
Customers will need to read their own bank's notice to establish what changes apply to them. Some announcements concern only contractual or regulatory wording; others refer to new tariffs, with the amounts still to be disclosed.
One local bank has published replacement terms for its retail products and a parallel revision for individual Islamic banking services, both effective in January 2027. Neither announcement included a general increase in account or card fees. The tariff schedule and product statement are the documents customers should check for any financial changes.
Separately, a foreign bank's UAE branch plans to introduce a corporate-client tariff schedule on January 1, 2027. It has not yet released the new fee amounts.
Another bank's announcement applies specifically to customers living in European Economic Area countries. From the beginning of 2027, it will no longer be able to initiate offers of certain new products and services to those customers. Existing products will continue to be serviced, no customer action is required, and the notice announced no new fees.
Retail contracts cover data use and account access
The local bank's revised retail terms govern more than individual transactions. They cover accounts, credit cards, loans, electronic banking and rewards programs, as well as communications, the handling of customer instructions, information updates, and account suspension or closure.
The revisions broaden the provisions governing how the bank collects, uses, processes and discloses customer data, both within the UAE and abroad. Customers must also keep their records current, including employment, residence, nationality, tax residency, telephone numbers and documents supplied to the bank.
Digital identity checks are another part of the update. The terms address facial recognition when customers log in, add beneficiaries, make transfers, update information or carry out other financial and nonfinancial transactions. They also provide for digital authentication to replace some traditional verification methods, including one-time passwords.
The broader shift in digital verification
The contract provisions sit alongside wider changes to financial-sector authentication. According to Facephi Observatory, CBUAE Notice 2025/3057 required all licensed financial entities to finish phasing out SMS- and email-based one-time passwords, or OTPs, before March 31, 2026. The requirement covered banks, finance companies, exchange houses, insurers and payment service providers. Facephi Observatory says the UAE became the first country to formally eliminate SMS-based OTPs from its financial system.
An example of facial authentication already in use comes from Bank of Sharjah. ID Tech Wire reported on October 8, 2026, that the bank had begun approving customer fund transfers using technology from Emirates Face Recognition (EFR). The partnership was signed at the AI Everything Abu Dhabi event.
Bank of Sharjah also plans to use the technology for instant account opening and automated updates to know-your-customer (KYC) records through an upcoming mobile banking app and web journey. Those extensions remain planned services, rather than completed deployments.
Facephi Observatory also reports that Federal Decree-Law No. 30 of 2024 established the mandatory National Digital KYC Platform. It centralizes and standardizes identity verification across the UAE financial sector, with the aim of removing duplicated checks and raising due-diligence standards under the AML/CFT framework.
Notice requirements and account-closure protections
The Central Bank of the UAE's Consumer Protection Standards require at least 60 days' advance notice of permissible changes to product or service terms, including fees. Financial institutions must provide both a plain-language explanation of the changes and the amended terms.
A notice labeled "Terms and Conditions Update" therefore needs more than a glance at its heading. Customers should check which of their products are affected and read the provisions on charges, authentication, data handling and account closure before the changes take effect.
Account closures carry a specific written-notice requirement. Under Article 5, clause 5.1.2.2 of the CBUAE Consumer Protection Standards, a licensed financial institution must tell a consumer about its decision to close an account 60 calendar days before closure. It must give its reasons in writing, except when it suspects the account is being used for financial crime.
Debit-card changes have a separate protection under clause 5.1.2.8. A bank reducing a card's permissible daily ATM/POS transaction limit or changing its terms and conditions must provide 60 calendar days' written notice. The notice must explain both the change and the options available to a consumer who disagrees.
