CBUAE Stored Value
Facility (SVF).

The Stored Value Facilities Regulation (Notice No. 5/2020) issued by the Central Bank of the UAE is the federal regime for prepaid cards, e-money wallets and stored-value accounts. The Regulation applies UAE-wide and is administered by the Banking Supervision Department of the Central Bank.

The SVF regime sits alongside two free-zone regimes: DFSA Category 3D (for SVF activity in or from the DIFC) and FSRA Money Services (for SVF activity in or from the ADGM). A firm wanting direct UAE mainland reach typically needs CBUAE authorisation.

The regulated activity.

An SVF holds funds on behalf of a user and allows the user to deploy that value to purchase goods or services from one or more merchants, or transfer the value to other users.

Single-purpose vs multi-purpose. Single-purpose SVFs (usable only with the issuer or a closely affiliated network) are typically exempt from full licensing. Multi-purpose SVFs (open or semi-open merchant network) are the licensed perimeter.

Capital and safeguarding.

The CBUAE applies a capital regime calibrated to size and risk. Capital is paid-up capital plus reserves, subject to ongoing prudential supervision.

The core consumer-protection mechanism is the safeguarding regime. SVF balances (the float) must be safeguarded through:

1. Segregation in a designated bank account at an approved UAE bank.
2. Trust arrangement in which the float is held on trust for users.
3. Insurance/guarantee from a regulated insurer.

Most operators use segregation.

Conduct, AML and operations.

Operators are subject to CBUAE conduct rules: disclosure to users, complaint handling, fees transparency, dispute resolution. AML/CFT obligations apply: user identification, transaction monitoring, suspicious-transaction reporting via goAML. Operational resilience — business-continuity, technology-resilience, cyber-security — is heavily scrutinised.

The licensing pathway.

1. Pre-application engagement with CBUAE.
2. Formal SVF application — business plan, capital plan, safeguarding architecture, AML/CFT framework, technology documentation.
3. CBUAE review and operational inspections.
4. Conditional authorisation with phased onboarding limits in the first 6-12 months.
5. Full authorisation after initial operating period.

Realistic timeline: 9-15 months from initial engagement to authorisation for a well-prepared application.

SVF versus other regimes.

Conclusion.

The CBUAE SVF Regulation is the federal UAE regime for prepaid cards and e-money. The free-zone regimes serve different perimeters. The right route depends on the target customer base. Neo Legal supports SVF applicants across CBUAE, DFSA and FSRA pathways.