Top court reaffirms compound interest ban

The Federal Supreme Court has reaffirmed that financial institutions in the UAE are prohibited from charging interest on accumulated or compound interest, and that total interest payable must not exceed the original value of the loan.

- Gulf News Report

The ruling came as the country’s highest court overturned a previous appellate judgment that had ordered a borrower to pay Dh1.553 million on a loan originally valued at Dh700,000, and sent the case back to the Cou