DIFC – CM C

Country Manual Credits

Dubai International Financial Center – Update 2025

out of Credit Institution’s Country of Establishment (RT, BT & Def)

Regulatory Template, Behaviour Template and Definitions and Concepts

Material changes

The manual has been reviewed and updated. There have been a number of changes to the content:

A definition of deemed professional client has been inserted into all relevant sections.

The manual now has a section on consumer credit, in previous version it was regarded as N/A. The changed approach is based on the view that it is likely that there will be some, albeit a small number, of consumers as defined in UAE Federal Law physically present in the DIFC. The regulatory treatment for consumer credit is the same as for the other types of credit covered;

We have now included a section on residential mortgage credit for property in the DIFC, in previous version it was N/A – there are in fact residential blocks in the DIFC itself. The regulatory treatment is the same as for the other types of credit covered;

 We have also completed the section covering Transactional Financing (Commodity Trade Finance) as there are entities in the DIFC authorised by the DFSA that engage in such activity. The regulatory treatment is the same as for the other types of credit covered;

 There is a reminder in every section that a credit institution should avoid carrying on any regulated activity in the DIFC itself such as providing credit, arranging credit and advising on credit.

 There is a new DIFC Law of Security that applies to all transactions, regardless of their form, that create a security interest in personal or real property by contract;

 With regard to occasional promotional visits to the DIFC note that over-reliance on promotional exemptions by a credit institution on a prolonged basis during such visits may be deemed by the DFSA to be operating a representative office which would itself require a DFSA licence. The DFSA now considers that in the context of financial promotions made onsite, “a regular basis” would be anything more than occasional and “a prolonged period” would usually be anything more than five consecutive days. Previously it was three days. This provides more flexibility than before in a avoiding the requirement to have a local representative office;

 There are new comments for promotion and negotiation activities to emphasise that where a foreign non-UAE credit institution is relying on an exemption to the Financial Promotions Prohibition it must take reasonable care to ensure that any financial promotion it makes in the DIFC:

Is clear, fair and not misleading;Includes the credit institution’s name, address and regulatory status;If it is intended only for deemed Professional Clients, it is not sent or directed to any person who appears on reasonable grounds not to be such a Professional Client, and contains a clear statement that only a person meeting the criteria for deemed Professional Clients should act upon it; and

Follow certain guidelines in the event it is targeted at non-qualified clients or contains any information or representation relating to past performance.

In relation to negotiation activities the text emphasises that all financial services and related contractual documentation should be completed by the credit institution outside the DIFC;

Non-material changes

Some content has been amended and/or slightly reworded (without introducing material changes) to reflect the regulatory situation/current interpretation of the regulatory framework more accurately.

For more information, please contact us: info@brpsa.com

Geneva, July 31^th 2025