Skip to main content

Article (25) Minimum Capital Requirements

C 3/2023 Effective from 29/9/2023
25.1A Restricted Licence Finance Company must maintain a minimum level of capital on an ongoing basis.
 
25.2A Restricted Licence Finance Company must hold and maintain the higher of:
 
a.Aggregate Capital Funds of Twenty million Dirham (AED 20,000,000); or
 
b.Aggregate Capital Funds equivalent to 5 per cent of the outstanding lending volume.
 
25.3Aggregate Capital Funds consist of the following items:
 
a.Paid-up capital;
 
b.Reserves, excluding revaluation reserve; and
 
c.Retained earnings.
 
25.4The following items must be deducted from Aggregate Capital Funds:
 
a.Accumulated losses; and
 
b.Goodwill.
 
25.5A Restricted Licence Finance Company must obtain prior approval from the Central Bank for any changes to its capital.
 
25.6The Central Bank may, at its sole discretion, impose a higher minimum capital requirement on a Restricted Licence Finance Company, taking into consideration, inter alia, its size, the nature and scale of its operations and the volume of transactions.