The bank said it had accelerated its rollout of the technology in response to the wave of card skimming that hit many banks in the region earlier in the year.
In addition, Lloyds TSB is also adopting an intelligent fraud monitoring system designed to oversee transaction activity on client accounts and highlight any deviation from usual spending patterns. This allows the bank to contact the customer to verify whether or not a transaction is authentic.
Lloyds TSB Middle East's consumer banking director Richard Musty said chip and pin will offer clients more payment security and improved fraud protection.
"Furthermore, our sophisticated fraud monitoring system will give us an early warning signal to potential fraudulent activity so we will be able to proactively tackle it," he said.
Lloyds TSB has been operating in the UAE since 1977. Its main branch in the emirate is located at Jumeirah near Dubai's Safa Park.
Worldwide, the group operates in 27 countries.