Banks in the United Arab Emirates have begun to increase credit card fees, and some are introducing charges for services that previously were free.
Standard Chartered Bank UAE, for example, will increase its annual credit card fee to 250 dirham (US$68 or 51 euros) from 200 dirham effective Jan. 1. In addition, Abu Dhabi Commercial Bank plans to charge 10 dirham per month as maintenance fee for credit cards, while Dubai bank LLC says it will charge 4 dirham per month as an SMS banking fee.
Abu Dhabi Commercial also has increased both the over-limit and late-payment fees for its Etihad Guest, cobranded Lulu and Meethaq credit cards to 189 dirham from 150 dirham. And it has introduced a Priority Pass card replacement fee of 150 dirham for Gold and Platinum credit cards effective Jan. 1.
The changes are a reaction to the pressures the banks have faced over the past two years caused by the global financial crisis, says an official for Abu Dhabi Commercial Bank, who requested anonymity.
“Expect more banks to follow suit,” the official says. “The dangers of nonperforming loans had scared banks from tampering with any fees for two years, but that is set to change.”
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