Will a balance transfer cut what your card debt costs you?
A balance transfer moves debt from another bank's card onto yours, repaid in fixed monthly instalments. UAE banks publish rates from 0% with a fee to about 3.69% a month, and charge 1.05% or a fixed fee if you settle early.
A balance transfer pays off what you owe on another card and adds it to your card as a fixed plan, repaid in monthly instalments over a set term. Whether it costs less depends on the plan’s rate, its fees and whether you keep spending.
What do UAE banks charge for a balance transfer?
| Bank | Rate | Fee to set up | Fee to settle early |
|---|---|---|---|
| ADCB | Up to 3.69% a month | Not stated for balance transfers | AED 210 |
| Commercial Bank of Dubai | Up to 1.39% a month, or 0% with a fee | Up to 6.3% on 0% transfers, printed as per month | 1.05% of the outstanding or AED 105, whichever is higher |
| Emirates NBD | 0.29% to 1.99% flat a month (0.53% to 3.46% reducing) | Up to 5% on 0% bookings | 1.05% of the principal outstanding |
| First Abu Dhabi Bank | Up to 2.75% a month on the total principal | Up to 4% | 1.05% of the principal or AED 10,500, whichever is lower |
| HSBC | 0% to 29.88% a year, reducing balance, fixed | None listed | AED 0 |
| Mashreq | As communicated at the point of sale | As communicated at the point of sale | AED 105 |
| RAKBANK | Not stated in the guide | Not stated in the guide | AED 261.45 plus the current month’s interest |
The terms are from each bank’s own document.12345678 HSBC says the rate offered depends on your circumstances and the plan term.6
Is a flat rate the same as a reducing rate?
No. A flat rate is charged every month on the full amount you transferred, even as you pay it down, so it costs more than the same reducing rate. Emirates NBD prints both: its 0.29% to 1.99% flat monthly range equals 0.53% to 3.46% reducing.3 The Central Bank requires any bank advertising a flat rate to state the equivalent effective rate beside it, and requires card interest to be calculated on the reducing balance.910
What happens on your card after a transfer?
The plan uses part of your credit limit and its instalment joins your minimum payment. Emirates NBD adds instalments to the minimum payment due.4 Emirates NBD says the first instalment is due from the second statement after booking, with the processing fee on the first statement.3
Two things can make a transfer cost more than it looks. Emirates Islamic says its profit-free period does not apply to balance transfers.11 Emirates NBD and FAB say the interest-free period on purchases does not apply if you have used a product excluded from it.45 And early settlement fees apply if you pay the plan off before its term.
Put the offer’s rate and fee into the balance transfer calculator and compare it with what your current card charges.
The small print
- The flat-rate disclosure is clarification 5 to Article (6) of Regulation 29/2011, Notice 2901/2011.9
- The reducing balance method for unpaid card balances is Consumer Protection Standards clause 7.1.5.13. Disclosure of whether a rate is fixed or variable and how it is calculated is clause 2.1.1.35.10
- Commercial Bank of Dubai’s early settlement fee is marked effective 17 December 2025.2
Sources
11
1Abu Dhabi Commercial Bank, Schedule of Fees. Effective 1 Sept 2026. Last checked 12 Nov 2026. Source document: Schedule of Fees
2Commercial Bank of Dubai, Credit Card Schedule of Charges. Last checked 12 Nov 2026. Source document: Credit Card Schedule of Charges
3Emirates NBD, Credit Card Services and Price Guide, February 2026. Last checked 12 Nov 2026. Source document: Credit Card Services and Price Guide
4Emirates NBD, Key Facts Statement, Credit Cards, Effective 1 March 2026. Last checked 12 Nov 2026. Source document: Key Facts Statement, Credit Cards
5First Abu Dhabi Bank, Conventional Cards Key Facts Statement, September 2026. Last checked 12 Nov 2026. Source document: Conventional Cards Key Facts Statement
6HSBC Bank Middle East Limited, UAE Schedule of Services and Tariffs. Effective 26 Oct 2026. Last checked 12 Nov 2026. Source document: UAE Schedule of Services and Tariffs
7Mashreq, Schedule of Charges, Credit Cards. Last checked 12 Nov 2026. Source document: Schedule of Charges, Credit Cards
8RAKBANK, Consumer Credit Card Service and Price Guide. Effective 13 May 2025. Last checked 12 Nov 2026. Source document: Consumer Credit Card Service and Price Guide
9Central Bank of the UAE, Regulation No. 29/2011 Regarding Bank Loans and Other Services Offered to Individual Customers, with Notice 2901/2011 clarifications. Effective 23 Mar 2011. Last checked 12 Nov 2026. Source document: Regulation No. 29/2011 Regarding Bank Loans and Other Services Offered to Individual Customers, with Notice 2901/2011 clarifications
10Central Bank of the UAE, Consumer Protection Standards, Notice 1158/2021, in force. Last checked 12 Nov 2026. Source document: Consumer Protection Standards
11Emirates Islamic, Key Facts Statement, Credit Cards. Last checked 12 Nov 2026. Source document: Key Facts Statement, Credit Cards
- Owner
- Comparecreditcards.ae research team
- Last review
- Next review due
- 11 May 2027
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- Published