02/01/2026
The UAE Government has issued two Federal Decree Laws introducing a major legislative and regulatory upgrade for the country’s capital markets—one establishing the Capital Market Authority, and another governing the Regulation of Capital Markets.
These reforms reflect the UAE’s continued commitment to strengthening the financial sector by enhancing stability, efficiency, transparency, and global competitiveness, while aligning the national regulatory ecosystem with leading international standards and best practices.
Key highlights include:
-A clearer definition of the Capital Market Authority’s core mandates, including supervision of licensed financial activities, issuer regulation, governance enforcement, and system-risk monitoring.
-Stronger alignment with global institutions such as IOSCO, the World Bank, the IMF, and FATF requirements—supporting improved international assessments and mutual recognition procedures across jurisdictions.
-Expanded provisions for consumer protection and financial inclusion, ensuring access to appropriate services for all segments of society, especially as fintech and digital transformation accelerate.
-Introduction of early intervention and crisis-resolution mechanisms to address financial distress among licensed entities, including recovery planning, restructuring, direct administration, and, when required, merger or liquidation measures.
-A more robust sanctions framework, including increased administrative fines tied to the severity of violations—up to 10x profits gained or 10x losses avoided, alongside enhanced transparency through public disclosure of sanctions.
Overall, these decree laws represent a significant step forward in reinforcing the UAE’s position as a trusted, well-regulated, and internationally respected financial centre.
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The UAE Government has issued a federal decree law concerning the Capital Market Authority and a federal decree law concerning the Regulation of Capital Markets, as part of the UAE’s ongoing efforts to modernise the legislative and regulatory framework governing the financial sector and enhance it...