UAE issues two federal laws on capital market authority rules

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UAE issues two federal laws on capital market authority rules

January 1, 2026

DUBAI,— The United Arab Emirates government has issued two federal decree laws aimed at modernizing the country’s financial sector and strengthening the regulation of capital markets, the Emirates News Agency WAM reported.

One decree focuses on the Capital Market Authority, while the other concerns the overall regulation of capital markets. According to the agency, both measures are designed to enhance stability, efficiency, and competitiveness in the UAE’s financial sector.

The decrees also aim to bring the national regulatory framework in line with international standards and reinforce the independence of the Capital Market Authority.

The agency said the Authority will continue to play a key role in maintaining the soundness and stability of the capital markets and promoting fair competition.

The laws outline the main responsibilities of the Capital Market Authority, including regulating licensed financial activities and issuers, supervising their operations according to global standards, issuing regulations to ensure transparent financial practices, supporting governance principles, monitoring system-wide risks, and improving the UAE capital markets’ international reputation.

According to the state-run agency, the decrees also seek closer alignment with global best practices and compliance with international organizations such as the International Organization of Securities Commissions, the World Bank, the International Monetary Fund, and the Financial Action Task Force.

They aim to strengthen international cooperation, facilitate mutual recognition procedures, and allow financial products to be recognized across borders.

The decrees emphasize consumer protection and financial inclusion. Licensed financial institutions will be required to provide accessible financial services to all segments of society, in line with digital transformation and fintech developments.

Programs will also promote financial awareness in collaboration with the financial sector and civil society. Existing practices, such as matching credit facilities to client income and preventing irresponsible lending, will continue.

The decree concerning the regulation of capital markets introduces early intervention measures to address signs of financial deterioration.

These measures include implementing recovery plans, adjusting capital and liquidity requirements, reorganizing management and operations, appointing temporary committees, and, if necessary, mergers, acquisitions, or liquidation.

The Capital Market Authority will act as the resolution authority during financial crises. It will have the power to replace management, appoint temporary administrators, restructure capital, and carry out rescue measures to maintain critical financial activities.

The decrees also strengthen administrative enforcement. Fines will be proportionate to the severity of violations and transaction sizes, with penalties of up to ten times the profit gained or the loss avoided.

Authorities may reach settlements with violators before judicial decisions and publish sanctions on the Capital Market Authority website, boosting transparency and market discipline.

(With files from WAM)