With the cost of living continuing to bite around the world, credit card interest rates have become a hot topic. Especially after US President Donald Trump called for a one-year cap on credit card interest rates at 10%. While the proposal has sparked strong reactions in the United States, many people in the UAE are now asking the same question “Could this impact credit cards issued by banks here?” Keep reading to find out what the answer to this potent question is.
Also read: 20 Personal Details Your Emirates ID Chip Stores About You & The Perks You Can Unlock!
What Is Trump’s Credit Card Cao Proposal?
Trump’s proposal is aimed squarely at easing financial pressure on American households. Credit card interest rates in the US have climbed sharply in recent years, with average rates now well above 25%. A temporary 10% cap is being positioned as a way to give consumers some breathing room while tackling rising living costs.
That said, it’s important to note that this is still just a proposal. There is no confirmed law, regulation, or enforcement plan in place yet, and any real cap would likely require approval from Congress. So for now, the idea remains part of a broader political and economic debate inside the US.
Why UAE Credit Cards Won’t Be Directly Affected By The Proposal
Even if the proposed cap were to become law in the US, it would only apply to credit cards issued by American banks and financial institutions that operate under US law. Credit cards issued in the UAE are regulated by the Central Bank of the UAE, not US authorities.
That means banks like Emirates NBD, FAB, ADCB, and other local or regional issuers are not legally required to follow US interest rate rules. Their credit card pricing, interest rates, and fees are set based on UAE regulations, and local market conditions. Including the bank’s own risk policies.
What About Visa & Mastercard Cards In The UAE?
This is where some confusion usually comes in. Many UAE-issued cards carry the Visa or Mastercard logo, but those companies don’t actually set your interest rate. They operate the payment network, not the lending side of things.
The bank that issues your card is the one that decides how much interest you pay, how rewards work, and what fees apply. So even if Visa or Mastercard cards in the US were affected by a cap, that wouldn’t force the same change on cards issued by UAE banks.
Could There Be Any Chance Of Indirect Impact at All?
While there’s no direct effect, there could be very mild, indirect influences over time. Big changes in the US financial system can sometimes shape global banking trends. Especially when it comes to how banks think about risk, rewards, and profitability. For example, if US banks adjust their credit card models, global banks may review their own strategies. But this would be a business decision, not a legal requirement. Any changes in the UAE would still be driven by local regulations and market competition, not US policy.
What UAE Cardholders Should Know Right Now
For people using credit cards in the UAE, there’s no immediate reason to worry. Your card’s interest rate, fees, and rewards are not affected by Trump’s proposal, and nothing is changing overnight. The main takeaway is simply to remember that while global financial news can feel close to home, not every policy announcement in the US has a direct impact on how money works around the world. Let alone the UAE.
UAE credit cards remain firmly under UAE rules.
