UAE: Banks tighten security with biometrics and AI checks

Gulf News, 28 February 2026: UAE banks are strengthening digital‑security controls by phasing out SMS and email one‑time passwords and adopting biometric logins and AI‑based fraud detection.

Banks across the UAE have begun removing SMS and email‑based OTPs after new directives from the Central Bank required all licensed financial institutions to discontinue these methods by the end of next month. Under the updated authentication framework, customers now approve transactions directly within banking apps using biometrics, facial recognition or secure in‑app PIN verification.

Regulators stated that the shift forms part of a broader 2026 initiative aimed at strengthening fraud prevention, tightening AI governance and enhancing operational resilience. Fraud‑control specialists noted that the rules require new capabilities, including detecting active calls and screen‑sharing attempts, and encourage the use of behavioural intelligence to interrupt real‑time scams.

Industry experts explained that impersonation scams, phishing attempts and SIM‑swap attacks have increased, reinforcing the need to retire legacy authentication mechanisms. Banks confirmed that the new systems will support routine digital activities such as card payments, online shopping and transfers while reducing exposure to fraud.

The new security framework will continue rolling out across the sector, with smaller institutions now accelerating compliance to meet the Central Bank’s deadline.

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UAE: Authorities Activate New Rule to Break Monopoly on Medical Products

Gulf Today, 24 February 2026: The UAE has activated a first‑of‑its‑kind mechanism requiring pharmaceutical companies to appoint multiple agents for each medical product to break long‑standing monopolies and strengthen national pharmaceutical security.

The Emirates Drug Establishment (EDE) said it has activated the new mechanism under Federal Decree‑Law No. 38/2024 on Medical Products, the Pharmacy Profession, and Pharmaceutical Establishments, marking the first time the UAE has obliged pharmaceutical firms to register more than one authorised agent per medical product. The move is part of a national strategy to enhance pharmaceutical security, diversify supply chains, and ensure the continuous availability of medicines and medical products across the country.

Officials explained that the reform aims to end exclusive‑agent control, reduce the risk of supply disruptions during emergencies or operational challenges, and improve the efficiency and resilience of medical‑product distribution. The EDE added that expanding the number of authorised agents will accelerate delivery times, improve inventory management, and boost the UAE’s attractiveness as an investment destination in the pharmaceutical sector.

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UAE: VARA Designated as Competent Authority Under Corporate Tax Rules

The UAE Ministry of Finance has issued a ministerial decision designating Dubai’s Virtual Assets Regulatory Authority as a competent authority for specific qualifying activities under the federal corporate tax framework.

The Ministry of Finance announced Ministerial Decision No. 336/2025, which added the Virtual Assets Regulatory Authority—established in Dubai under Dubai Law No. 4/2022 Regulating Virtual Assets in the Emirate of Dubai—to the definition of “competent authority” in Ministerial Decision No. 229/2025 on Qualifying and Excluded Activities for the Purposes of Federal Decree-Law No. 47/2022 on the Business and Corporate Taxation.

Under the update, VARA is recognised as a competent authority for qualifying activities linked to fund management, wealth management and investment‑management services, bringing virtual‑asset supervision into alignment with the broader corporate‑tax framework. The Ministry stated that the decision formed part of efforts to enhance clarity, certainty and regulatory alignment across the UAE’s financial system, supporting its strategic position as a global investment and financial hub.

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