Credit Limit

A credit limit is set by the issuing bank or finance company at the time a credit card or revolving credit facility is opened. It represents the total of all unpaid purchases, cash advances, balance transfers, fees, and interest that can sit on the account simultaneously. Any single transaction that would cause the running balance to exceed this ceiling is declined, unless the issuer has separately agreed to an over-limit arrangement.

Issuers in the GCC determine credit limits through an affordability and credit-risk assessment. The Central Bank of the UAE (CBUAE) and the Saudi Central Bank (SAMA) both publish regulatory frameworks for consumer lending that require licensed institutions to evaluate a customer's income, existing liabilities, and credit bureau profile before setting or adjusting a limit. The Qatar Central Bank (QCB), Central Bank of Bahrain (CBB), Central Bank of Kuwait (CBK), and Central Bank of Oman (CBO) each maintain equivalent conduct-of-business rules for retail credit in their respective jurisdictions.

A credit limit is not static. Banks may review it periodically - upward if repayment behaviour and income support it, or downward if the customer's risk profile deteriorates. Cardholders can also request a review; the issuer retains the right to approve, modify, or decline that request. Temporary limit increases for travel or large purchases are offered by some issuers and carry an automatic reversion date.

For English-speaking expats in the GCC, the credit limit assigned to a card is directly tied to how issuers verify income. Many GCC banks require a salary-transfer arrangement or payslips denominated in local currency; expats paid offshore or in a foreign currency may find that their verifiable local income - and therefore their initial credit limit - is lower than expected. It is worth asking the issuing bank exactly which income documents it will accept and how limit reviews are triggered.

Credit utilisation - the share of the limit currently in use - feeds into bureau scores held by Al Etihad Credit Bureau (AECB) in the UAE and the Saudi Credit Bureau (SIMAH) in Saudi Arabia. A high utilisation ratio can reduce a score even if payments are made on time, which matters when applying for a mortgage, car loan, or a new card from a different issuer. Keeping the outstanding balance well below the credit limit is a straightforward way to manage bureau exposure, though the precise scoring weightings are not publicly disclosed by AECB or SIMAH.