Annual Fee

An annual fee is billed once per year - usually on the account anniversary or the first statement after card approval - and appears as a single line item on the cardholder's statement. It is separate from interest charges, cash-advance fees, and foreign-transaction fees. The fee is set by the issuing bank and disclosed in the card's schedule of charges, which regulated issuers are required to publish.\n\nIn the GCC, card issuers are licensed and supervised by their respective central banks: the Central Bank of the UAE (CBUAE), the Saudi Central Bank (SAMA), the Qatar Central Bank (QCB), the Central Bank of Bahrain (CBB), the Central Bank of Kuwait (CBK), and the Central Bank of Oman (CBO). Each regulator requires issuers to disclose all fees - including the annual fee - in a standardised key facts document or equivalent schedule of charges before account opening.\n\nAnnual fees tend to scale with the card tier. Entry-level cards may carry no annual fee or a low one, while metal, premium, and charge cards typically carry higher fees in exchange for rewards programmes, airport lounge access, or travel insurance. The fee itself does not earn rewards and does not reduce the card's credit limit.

For expats in the GCC, the annual fee is one of the few card costs that is certain - unlike interest, which only applies if you carry a balance. When comparing cards, look at the schedule of charges published on the bank's official website and confirm whether the annual fee is waived in the first year, waived conditionally on meeting a minimum spend, or charged unconditionally. Some issuers also charge a separate supplementary-card fee for each additional cardholder on the account.\n\nIf you hold multiple cards - common among expats managing spending across home-country and GCC accounts - annual fees can accumulate quietly. A card that sits unused still generates its annual fee unless you formally cancel it. Cancellation procedures vary by issuer; check the official terms or contact the bank directly to confirm the process and any notice period required.