'Sanadak' Launch: A Milestone For Consumer Protection In UAE's Financial Sector

The UAE Banks Federation (UAEBF) has recently shown its strong support for the Central Bank of the UAE's (CBUAE) new initiative, "Sanadak", marking a significant development in the UAE's financial services sector. This first Ombudsman Unit is dedicated to consumers of Financial Institutions and Licensed Insurance Companies, aiming to enhance consumer rights protection and resolve complaints effectively.

UAEBF, representing a broad spectrum of banks and financial institutions, has committed to fully cooperate with "Sanadak" to ensure the protection of consumer rights within the financial sector. Jamal Saleh, Director-General of the UAE Banks Federation, praised the CBUAE for launching such a pioneering initiative. He emphasized that "Sanadak" is set to play a crucial role in boosting consumer protection and confidence across the banking and financial sector by ensuring integrity, fairness, and transparency in the complaint resolution process.

According to Saleh, "Sanadak" stands as a vital tool for accelerating the resolution of complaints from stakeholders, highlighting its effectiveness, transparency, and capacity to facilitate amicable dispute resolutions. This initiative is expected not only to enhance confidence in the UAE's financial services but also to solidify the country's status as a leading global financial hub.

The UAE has already achieved notable success in building consumer confidence in its banking sector, ranking second globally in 2022. This accomplishment is attributed to the Central Bank's directives and the continuous development efforts within the banking sector. Saleh further revealed that customer confidence in the UAE banking sector climbed to 90 percent in 2023, up from 84 percent in 2022, surpassing all other countries and even the most developed financial and banking centers worldwide.

Furthermore, Saleh pointed out that the goals of "Sanadak" align with those of the UAE Banks Federation in ensuring fair and effective financial services while promoting financial inclusion. The Federation's members are committed to providing high-quality banking products and services to all customer segments. This focus is particularly on individuals and small to medium-sized enterprises (SMEs), which are essential for the UAE's economic growth through diversification and job creation.

In summary, the launch of "Sanadak" by the CBUAE, with full backing from UAEBF, marks a significant stride towards enhancing consumer protection and confidence in the UAE's financial sector. This initiative is expected to foster a more transparent, fair, and efficient environment for resolving complaints or disputes involving licensed banks and insurance companies in the country.

With inputs from WAM