CBUAE Introduces Updated Remuneration Rules for Banks and Insurance Companies

The Central Bank of the UAE (CBUAE) has issued Circular No. 5/2026, creating an updated regulatory framework governing remuneration and corporate governance for banks and insurance companies, according to law firm Morgan Lewis.

The new regulations establish stricter controls designed to align staff remuneration, incentive schemes, and risk outcomes with broader corporate governance standards across regulated financial entities.

Under the rules, regulated institutions must conduct an internal gap analysis within 180 days and achieve complete organizational compliance within 15 months. The framework also introduces expanded reporting obligations, including mandatory annual disclosures regarding deferred compensation arrangements and risk-linked pay.

Morgan Lewis notes that employers must review their employment contracts, human resources policies, and committee structures to conform internal labor and governance practices to the central bank's mandate.